It would not be unusual if any given service provider had qualms about either zero rating video usage or unlimited usage plans. Neither plan produces direct incremental revenue for the Internet service provider as usage grows.
But there can be indirect revenue growth, in the form of additional purchasing of data plans, or increases in the amount spent on data plans. Some mobile operators have found that sampling programs such as Free Basics increase mobile data take rates.
In other words, after using mobile apps for a while, users decide it is worth paying for mobile data and Internet access.
T-Mobile US, with its Binge On program that zero rates streaming video, has found that such a program entices about 20 percent of Binge On users to upgrade their data plans, producing more revenue per account.
The T-Mobile US “Binge On“ program that zero rates streaming video has gotten a 99-percent satisfaction rating in a study of consumers produced by Strategy Analytics.
Also, some 20 percent of Binge On users traded up from a lower tier T-Mobile US price plan to get Binge On’s benefits, so the program arguably is paying off for T-Mobile US.
All of that arguably also helps video packagers who have gotten more viewers and engagement.
The survey also found 68 percent of customers of rival mobile networks indicated either strong or moderate interest unmetered video streaming over the mobile network in exchange for streaming limited to DVD quality.
Also, some 14 percent of users reported they were either “very interested” or “extremely interested” in switching to T-Mobile US to get zero-rated video.
That would explain why both AT&T--and Verizon to some extent--now have responded with similar offers.
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