T-Mobile is giving away Netflix service to its family-plan customers
Starting on September 12, customers with at least two lines on T-Mobile's One family plan will be able to activate a standard $10 a month Netflix subscription at no extra cost, T-Mobile announced Wednesday. The deal is open to both existing and new T-Mobile customers and to both those who already have a Netflix account and those who don't.
"The future is mobile, over-the-top and unlimited," said T-Mobile CEO John Legere in a press release.
T-Mobile is positioning the announcement as as yet another one of its "Un-carrier" moves that differentiate the company from its much larger competitors, AT&T and Verizon. Those giant carriers have had a difficult time maintaining the speed of their networks as Americans watch more video and use more data on mobile devices, T-Mobile said in the press release.
When asked if T-Mobile was concerned that Netflix binges might slow down speeds on its network, a company representatives said, "Hell no. Our network was built for the video era!"
To activate the complimentary Netflix subscription, T-Mobile customers can go to the company's website, to a T-Mobile store, or call a customer service agent. The Netflix service includes access to high-definition videos and allows customers to stream videos on up to two devices simultaneously. But customers can apply the $10 monthly credit from T-Mobile to Netflix's $12 per month premium plan so they pay just $2 a month for that service, which offers ultra-high resolution 4K video streams and allows subscribers to tune in Netflix videos on up to four devices at once.
By default, T-Mobile streams videos in standard-definition, 480p resolution, although it allows customers to choose instead to stream higher resolution videos, which require far more bandwidth. Although the company's standard service plans promise unlimited data, T-Mobile warns customers that it may slow their network speeds if they consume more than 32 gigabytes in any given month.
T-Mobile and Netflix did not disclose the details of their agreement, but T-Mobile indicated it would be paying Netflix on behalf of its customers.
"This is not something Netflix is giving us for free," Legere said on a conference call with reporters, according to the Wall Street Journal. "We're taking care of your Netflix bill for you."