Cancel your plans to see people... Your binging schedule is about to take over all social commitments — Apple TV+ hits November 1st ($4.99/month), then Disney+ takes position #1 in your bookmark manager on November 12th ($6.99/month). But last week we noticed that plenty of these new Netflix rivals will actually be free:
- Verizon is giving away 1 year of Disney+ free to customers with unlimited plans.
- Apple is offering 1 year of Apple TV+ free to customers who buy a new Apple device (iPhone, Mac, iPad).
- AT&T announced its HBO Max (debuting in April) will be free to subscribers who have HBO already.
- T-Mobile revealed a partnership with Quibi (the name is a mashup of "quick" & "bites"). Details are TBD, but we wouldn't be surprised if the mobile-first premium video is free to those with T-Mobile plans.
- Netflix’s deal with T-Mobile goes waaaaaay back to 2017. But “Netflix on Us” only happens for T-Mobile users if your account has 2 lines.
The era of password mooching is over... Mobile phone companies are paying for your streaming. Binge-able content for free is their "promo puppy." Let us explain.
- "Profit puppy": The part of a company's business that makes a huge chunk of the profits. Like Ford's F-150 pickup truck, Lululemon's yoga pants, or Amazon's cloud service, AWS — they all drive profits.
- "Promo puppy": A shiny, cuddly, free perk that attracts customers to sign up. Think free streaming for a year, free shipping with Prime, or "60K reward points if you spend $4K in the first 4 months" — they all drive sign-ups.
Promo puppies are discounts in disguise... It’s not clear who’s subsidizing the Disney+ account that Verizon offers for free. Is Disney+ giving it to Verizon customers, or is Verizon paying, or something in between? For customers, these promo puppies make you love Verizon and get addicted to Disney+ — both brands win. Discounts have the same outcome, but make the discounted thing look cheap.