& cplSiteName &

Sprint Plans More Bundled-Content Offers

Sarah Thomas
5/19/2014
50%
50%

After some very early success with its partnership with Spotify, Sprint is planning to offer additional bundled content add-ons to eke more value out of its installment billing and "Framily" plans.

Speaking Monday morning at the JP.MorganChase Global Technology, Media and Telecom Conference, Sprint Corp. (NYSE: S) CFO Joe Euteneuer told attendees that he wants to bring more types of content to the forefront for Sprint customers and offer them as add-ons to their data plans.

The offers would look similar to the deal Sprint struck with Spotify last month that Euteneuer said has done really well in its first two weeks. Sprint helps market and promote Spotify and offers the music service free to those customers on a Framily plan for up to six months, followed by a discounted rate of $7.99 per month after that if the Framily has less than five people in it and $4.99 if it has six to 10 members. Euteneuer said this type of flexibility in billing "establishes the foundation of where we're going to go forward." (See Sprint Launches No-Sharing 'Framily' Plans.)

The carrier also offers installment billing, which has caused its service ARPU to go down, but device revenue to grow. The CFO suggested bundled deals like the Spotify offer will help it make up some of the service revenue its losing from installment billing, which 29% of its customer base now uses. (See Sprint Reports Q1 Loss of $151M.)

"The most important piece of installment billing is, one, customers are now paying for their phones 100% over 24 months, and we have eliminated the subsidy, which has a big help to the bottom line," Euteneuer said, adding that Sprint will "then continue to create value through other Spotify type offers."

Future content deals will likely branch out from music, but interest in mobile music has been growing lately, making it a good place to start. Apple Inc. (Nasdaq: AAPL) is reportedly acquiring Beats, which is a partner to AT&T Inc. (NYSE: T). Analysts believe the deal could spur more M&A and action in the mobile music space. (See Apple Buying Beats for $3.2B: Dr. Dre & Tyrese.)

— Sarah Reedy, Senior Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
5/19/2014 | 5:04:37 PM
Re: toll-free too?
I have never thought that Spotify would be able to support itself through advertising alone. Tying the service with devices on the go is a great idea: It's like an iPod (remember those?) with every song you could ever want. 

I'm positive that the Apple-Beats deal will leverage the AT&T partnership. After all, isn't AT&T where the iPhone made its initial debut?

 
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
5/19/2014 | 4:52:44 PM
Re: toll-free too?
Sprint seems always ready to spice up their offerings and the bundled content is most likely a growing trend. It's a great way to cross-promote other services while enticing customer who think they're getting something free, but of course it's added revenue eventually to the providers.
Featured Video
From The Founder
The world of virtualization is struggling to wrench itself away from the claws of vendor lock-in, which runs counter to everything that NFV stands for.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Has Europe Switched to a Fiber Diet? Not Yet...
Ray Le Maistre, Editor-in-Chief, 2/15/2018
5G: The Density Question
Dan Jones, Mobile Editor, 2/15/2018
Will China React to Latest US Huawei, ZTE Slapdown?
Ray Le Maistre, Editor-in-Chief, 2/16/2018
IBM, Microsoft Duke It Out Over Chief Diversity Hire
Sarah Thomas, Director, Women in Comms, 2/15/2018
21st Century Networking? Welcome to the Lock-In
Steve Saunders, Founder, Light Reading, 2/20/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed