When T-Mobile this month launched TVision Home, its rebranded Layer3 TV service costing $90 per month minimum, many industry analysts and consumers scoffed at the less-than-disruptive price tag. While TVision Home launched at $90/month, including a $9.99/month discount for T-Mobile customers, it also charges $10/month per connected TV.
Reactions to the approximately $100/month cost were not overly enthusiastic.
During T-Mobile’s first-quarter earnings call on Thursday, T-Mobile COO Mike Sievert fielded a question about TVision Home’s pricing and how it was initially received.
He said that T-Mobile is starting its pay TV push with a full cable replacement product including more than 275 channels including HD and 4K content, personalized DVRs for each family member, Amazon Alexa and Google voice integration and social media integration.
“And, it’s priced below what typical people at cable and satellite pay when they’re beyond that first promotional year. They’re in year two of those multiyear contracts where you sign up for something and it’s swell at first and then you get slammed,” said Sievert. “We come in with fair, rational pricing from day one that saves them money right away versus year two and beyond in those crazy contracts.”
