Past Telogical Talks
Welcome to Telogical Talk, a weekly series where we analyze a slice of the competitive intelligence data collected by the Telogical research team.
This week, we're talking about wireless carriers extending beyond typical device promotions in their efforts to acquire customers.
In the U.S., three of the "big four" wireless carriers currently offer a complimentary video subscription to new customers who subscribe to a qualifying plan. The table below summarizes in-market video promotions.
Permanent Promotion: Unlike common introductory promotions from traditional video providers (e.g. 3 months free of a premium channel,) these wireless video promotions have been positioned as permanent value-adds associated with maintaining a wireless subscription.
Consumer Value: At retail rates, the customer value of these offers, ranked from lowest-to-highest (rounded):
- Sprint / Hulu $8/month, $96/year
- T-Mobile / Netflix $12/mo, $144/yr
- AT&T / HBO $15/mo, $180/yr
Superior Strategic Position: In addition to offering the “richest” video promotion, AT&T’s vertical integration as a satellite and OTT provider gives it a clear edge over T-Mobile and Sprint’s straightforward video promotions by luring the customer deeper in its portfolio of products
- DIRECTV and DIRECTV NOW customers permitted to get free HBO on those platforms under the promotion
- Absent a video relationship, activation of HBO offer requires setup of a DIRECTV NOW (no charge) account, creating re-marketing opportunities
- Unrelated to HBO offer, AT&T offers $15 discount to customers with qualifying video and wireless service plans
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