As wireless data usage increases, T-Mobile has seemingly come up with a clever solution to satiate customers without saturating their network. “Binge On” will enable unlimited video streaming, from select providers like Netflix and WatchESPN, that doesn’t count against one’s cap. T-Mobile marketing states they’ve “optimized” the video … which some are reporting as 480p. On the go, on a small screen, that may be sufficient for most. I’d probably make that trade at the gym for treadmill Netflix, given the facility’s WiFi struggles and the potential to burn through my Verizon bucket.
From Fierce Wireless:
The reality is that Binge On will be imposed on all of T-Mobile’s customers starting Sunday, including the ones who have signed up for its unlimited data plans. Customers who don’t want the service will have to opt out of it. Yes, Binge On gives T-Mobile’s customers free streaming video, but it also reduces the resources T-Mobile needs to employ to deliver that video. It’s a smart move, but it’s not as altruistic as Legere might imply.
Of course, there are two sides to every coin. And some will object to reduced video quality. Assuming they even know T-Mobile took the liberty of making that change on their behalf. Further, “zero rating” is something of a net neutrality issue.
From The Verge:
Binge On is bad because it gives T-Mobile too much power. It’s really that simple. And yes, it’s bad for net neutrality. If net neutrality has a core idea, it’s that regular people ought to be in charge of the internet — especially since the internet is mostly just people. That means companies like T-Mobile shouldn’t be picking winners and losers, even if customers appear to be winning in the short term.
“Further, “zero rating” is something of a net neutrality issue.”
A bit of an understatement…
I’d have no issue with zero rating popular services that help augment the provider’s finances, as long as they were open about the relationship, and keeping non-partner data usage reasonably priced. Unfortunately, corporate America doesn’t see the value in doing things in a fair and just way a lot of times, and chooses instead to push their agendas without regard to those of their customers. I would love to have Netflix streaming at no cost to my plan’s data, but also want to be sure I’m not backed into a corner where I can only use “their” partners, or risk having a gargantuan monthly bill. I like to stream Netflix and Amazon, but also like to house and stream my own media on occasion.
Not sure if they still do it, but at one time Verizon offered zero rating streaming of NFL games and content from your mobile device through their NFL Mobile app.
In this case, I think the net neutrality issue is a little bit of a crock. Is there any air left in this space with Netflix, Amazon, Hulu, and Youtube? No, there is not. There will not be another video service come out like them so T-mobile’s move just allow most of the people to watch what they want.
Wonder if MySpace had the same thought right before Facebook drank their milkshake?
I agree. Before Netflix and Redbox was Blockbuster, which was THE video rental company. There is plenty of opportunity for others to get their foot in the door if they can strike deals and work out a system of streaming content. I’d never go so far as to say there will not be another. I don’t think Google has found a way to maximize YouTube yet, even though it’s widely known and used. I think there are a multitude of options, including the new Music service, and potential for streaming live NFL games similar to what Yahoo did recently. Revenue streams (no pun intended) could dramatically change the landscape in the next two or 5 years from what it is today. Remember, just a few short years ago, Netflix was cutting up their business and was losing money and customers at record rates. Also, with Disney and others creating their own streaming services, there is a possibility of not only over saturation, but fragmenting that kills Netflix and others (forcing them to live on only their original content).
“if they can strike deals”
Worth remembering, T-Mobile isn’t accepting money or business deals in exchange for zero-rating. That’s how they skate around the net neutrality issue. As seen with Music Freedom, they’ve been pretty good about zero-rating even extremely obscure services. According to Neville Ray, T-Mobile’s CTO and head of network, they just need to be able to see what is video traffic vs. downloads and other content.
I’ve worked for T-Mobile, in full disclosure, and was skeptical about zero-rating video services. I’m more optimistic about it now.
A little late to the game here, but…
As a T-mobile customer, I can day that they have been very clear on what Binge On means, and how to change the setting on your account. Since I have unlimited data I turned off Binge On (480p) setting. I may turn it back on at a later date if it suits me better (for instance, tethering my tablet to my phone to view Netflix – since that data also doesn’t count against hotspot data).
I honestly don’t see the net neutrality issue here: T-Mobile will allow any service to participate, they just need to be technically ‘hooked up’. Same with the music streaming – the most obscure services are now featured so it looks like they are true to their word.
Unlimited LTE data for three, and 14GB of hotspot each for $140 – I’m loving it. Not to mention the international data I use twice a year – no more hunting for local SIMs.