T-Mobile gambles consumers will go lower def for free viewing
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T-Mobile gambles consumers will go lower def for free viewing
Will consumers go backwards to watch SD videos on smartphones?
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T-Mobile CEO John Legere announcing free video streams--with a catch, at a press event in Los Angeles(Photo: Jefferson Graham)
LOS ANGELES — Give T-Mobile CEO John Legere credit. He was the first to call for an end to two-year wireless contracts. Thanks to him, it's now easier and cheaper to buy smartphones.
But with his latest "Un-Carrier" stunt, Legere's got a much tougher sell.
T-Mobile, beginning Sunday, will offer selected video views from providers such as Netflix at no charge. That sets it apart from AT&T, Verizon and Sprint, which count video viewing against the monthly data caps in customers' wireless plans.
"This could be the biggest thing we've ever announced," Legere boasted Tuesday.
USA TODAY's Jefferson Graham reports from the T-Mobile anouncement in Los Angeles that the new "Binge On" service has a catch. Robert Hanashiro, USA TODAY
But there's a catch.
First of all, the videos on your high-resolution iPhones, Samsung Galaxys and other devices will be displayed in low, 480p standard definition.
That's way down from the 720p and 1080p HD we tech lovers have come to enjoy.
Remember what it was like just a few years ago when YouTube videos were presented in grainy, fuzzy, 320p and 480p definition? Anyone want to go back to those days again?
And second, only certain apps are part of the T-Mobile "BingeOn," program. Yes, there's Netflix, Hulu, HBO Now, Showtime and 20 others, but missing in action are some of the biggest players, including YouTube, Amazon Prime and the CBS, NBC, ABC and Fox prime-time apps.
John J. Legere at the Shrine Auditorium announcing new products. (Photo: Robert Hanashiro)
Legere on stage Tuesday dismissed that concern, and he played up the irreverent persona that T-Mobile has used to help define the brand against bigger, more established competitors.
Sporting a pink T-shirt with matching shoelaces, Legere held a Red Bull in one hand, shouted multiple f-bombs, made several references to online porn and bad-mouthed the competing wireless carriers, which he calls "dumb and dumber."
During the Q&A, we asked Legere how consumers would take to SD on their HD phones. "Don't get hung up on 480p," he replied, adding that customers wouldn't be able to tell the difference, because their devices of choice have small screens.
And besides, he added, "BingeOn" is a free feature. If subscribers don't like it, they can turn it off, and return to HD streaming, which of course counts against monthly data caps, which start at 2GB for $50 monthly.
One assumes T-Mobile really understands the customers it has courted so assiduously and is right thinking they're willing to swap lower monthly bills for watching videos that would have looked great on phones in 2007. If other carriers follow suit, the gambit will look savvy and innovative.
T-Mobile CEO John J. Legere at the Shrine Auditorium announcing new products. (Photo: Robert Hanashiro)
His basic sales pitch in his presentations is that the wireless carriers are anti-consumer — "overages are evil," he said several times Tuesday.
While Legere railed against the evils of his competitors in his presentation, he didn't go all the way with the one feature consumers would kill for: a basic, monthly and understandable rate, without any extra data charges, throttles or billing semantics.
T-Mobile's latest is a "cheap sales trick," says Matt Wood, the policy director of Free Press, a consumer group that fights for consumer tech issues. "First you fabricate a problem for customers," in data caps. "Then you make that problem go away and act like you've done them a huge favor."
On paper, Legere's latest move does sound great. T-Mobile has found a solution to massive mobile video consumption, by optimizing the video streams for playback.
But the big question is whether consumers respond in the manner of the T-Mobile employees Tuesday with a resounding "yeah," and dramatically increase video viewing on his network, or take a look at the low-res SD video, and then skip it altogether.
Audience watch T-Mobile CEO John J. Legere at the Shrine Auditorium announcing new products. (Photo: Robert Hanashiro)
Follow Jefferson Graham on Twitter @jeffersongraham
Read or Share this story: http://usat.ly/1iTWkgg
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T-Mobile gambles consumers will go lower def for free viewing
Sprint flies a plan over T-Mobile's headquarters. (Sprint Photo) 
T-Mobile wrote "end overages now" in the sky above Basking Ridge, New Jersey. (T-Mobile Photo) 
Mitek Contact: Ann Reichert Senior Director of Marketing pr@miteksystems.com Investor Contacts: Todd Kehrli or Jim Byers MKR Group, Inc. mitk@mkr-group.com
T-Mobile gambles consumers will go lower def for free viewing 
