Netflix may have dug itself into a bit of a hole and they’re clawing like heck to get out. After years of frivolous spending, the streaming giant is looking to recoup some of their costs. First, they attempted to crack down on people sharing their accounts with one another. Now, they’ve increased their prices $2 per month. These actions are making one of their partners, T-Mobile rethink one of its strongest marketing strategies.
Free Netflix Isn’t Free Anymore
Last year, one of the largest data companies, T-Mobile made a bold statement as a marketing ploy. The pink-hued mass communications giant stated, “Netflix is on us” for anyone in their family plan. After this successful marketing scheme, T-Mobile inched its way near the top of the cell phone service provider wars. Now, they are pretty much eating their words.
The $2 price hike on Netflix’s behalf proved to be a little steep for T-Mobile. That’s a lot of dough to cover their approximately 30 million post-paid cell phone subscribers. Just imagine if they decided to add in 18 million prepaid customers? Well, that most likely won’t be an option now that the service is pulling back on their offer.
What will T-Mobile Offer Instead of Free Netflix?
While T-Mobile won’t foot your entire Netflix bill, it will cover a majority. They are doubling down on their original offer of covering the $10 per month that Netflix was charging. All T-Mobile asks is that you chip in the extra $2 per month.
If you are enrolled in the program to get free Netflix already, the agreement will be honored until July. Therefore, you will still get two months of completely free Netflix at the $2 increased price point. However, once the new terms and conditions for the Netflix-T-Mobile partnership start, those enrolled in the free Netflix program will see at least a $2 increase on their phone bill.
T-Mobile released an official statement regarding the alterations to their popular free Netflix program. They also shared the date you can anticipate the changes to come into effect.
Here is the official T-Mobile statement on the matter:
“Beginning July 5, 2019, customers on qualifying T-Mobile ONE voice plans who have or redeem a Netflix Standard 2-screen subscription will see a $2 charge per month on their bill. T-Mobile ONE customers with a Premium subscription will see a $5 charge. Impacted customers will receive an SMS starting June 5, notifying them of the change. T-Mobile One w/One Plus Family customers will continue to receive the Standard 2-screen subscription for no additional cost and the Premium subscription for $3.”– T-Mobile
As you can see, regular Netflix subscriptions aren’t the only changes in T-Mobile. They are also upping their Premium Subscription and 2-Screen Subscriptions as well.
T-Mobile and Netflix Future
While this isn’t the first time Netflix has raised their prices, it is the first time T-Mobile followed suit. It seems like they’re growing tired of eating the extra costs each time Netflix makes a change.
If Netflix ups its price again, it might just be the end of the T-Mobile and Netflix business arrangement. As always, we will keep you updated on any changes as we find out about them.