There’s a lesson to be drawn from the latest
TV-industry attempt to counter cord-cutting.
Cable-like online packages like Sling TV and
YouTube TV have ended discounts or raised
prices, causing customers to flee and new sign-
ups to slow down. Sony announced that it will
quit offering PlayStation Vue, one of the first to
challenge traditional TV packages.
Even the dominant player isn’t immune. Netflix
has raised prices slowly, which helped shield it
from price shock, but its latest small increase has
hurt customer growth.
Westcott, the Deloitte consultant, compared the
streaming promotions to efforts to lure wireless
customers from competing companies.
T-Mobile has long offered Netflix free to many
customers. Verizon includes six free months of
Apple Music with some of its unlimited plans.
Many offer other deals like paying off your phone
early or getting a phone for free if you switch.
“They were constantly looking for ways to steal
you off other players,” he said.
How will these services keep users once they’ve
reeled them in?
The companies can constantly refresh their
services with new shows and movies, Diffusion
Group president Michael Greeson said.
Cathy Yao, an analyst at Diamond Hill Capital
Management, also said companies can try to
create “stickiness” by bundling the services with
other products and services so a customer is less
inclined to unsubscribe.
For example, including HBO Max with wireless
and broadband services will make consumers
more likely to stick around for all three, Yao