T-Mobile has just reported first quarter profits this year and they have far surpassed that of analyst expectations. The company has been successful at stealing customers from the likes of AT&T and Verizon, but they’ve had a little help in the process. Thanks to their Binge On the program, YouTube, Google Play and Netflix have all played a part in the mobile provider’s surprise domination.
T-MOBILE STEALS CUSTOMERS FROM AT&T AND VERIZON
For the first three months of 2016, T-Mobile has shown a net income of $479 million. That $0.56 per share compared to last year’s loss of $63 million in the first quarter. Analysts predicted about earnings to be about five times as less. With this surprise revenue rise of 11%, competitors like AT&T and Verizon much be scratching their heads. It turns out the problem is easier to find than they might think. The majority of T-Mobile’s new customers are coming from AT&T and Verizon. Their pre-paid program has something to do with it, however, it’s really the companies relationship with Youtube, Google Play and Netflix that is helping them out.
YOUTUBE, GOOGLE PLAY AND NETFLIX HELPS MOBILE GROWTH
One apparent incentive for AT&T and Verizon customers to make the switch is T-Mobile’s Binge On initiative. During the quarter, the company expanded upon it, letting customers stream video content from YouTube, Google Play, Netflix and more. In addition, this can all be done without using up their high-speed data budget. Last just November, Bing On on only had 24 participants, but now users can choose from more than 60 video providers. YouTube, Google Play, Netflix and Binge On are blurring the lines between what is a mobile carrier and what’s an entertainment system. Competitors will have to respond in a similar way if they want to compete.
COMPETITION FACES DATA ISSUES
To make matters worse for T-Mobile competitors, Netflix is throttling video on AT&T and Verizon in order to keep users under data caps. Apparently, the video streaming company believes it is up to them to protect it’s members from overage charges, however, they are doing so without notifying the mobile companies. This “feature” of their’s is unique to this situation and does not extend to Binge On. With more additional videos from Google Play, Youtube, and no data caps, it looks like Binge On will continue to poach customers from the competition.
https://www.youtube.com/watch?v=eI8YZdejPKg
