In a move to boost TV and digital voice subscriptions, AT&T has decided to offer current U-verse internet subscribers their choice of a free Kindle Fire, Xbox 360, Sonos Play 3, or Nexus Tablet 7 if they sign up for VoIP or digital TV service.
Competition is heating up in the pay TV industry, as cable and satellite providers develop new products and technology to entice new subscribers and keep current customers. This won’t be easy, since the market is considered fully saturated by industry observers. AT&T added 192,000 TV and 609,000 internet subscribers in the 4th quarter while other major cable MSOs such as Time Warner Cable and Charter Communications lost pay TV customers.
In addition to free electronics, the telco has decided to launch the U-verse Jukebox app and Interactive Workout App. The Jukebox app lets U-verse TV customers play music from their smartphone or tablet on any TV connected to a U-verse set-top. This way, consumers can use the sound system of their TV instead of the limited speaker capacity of their mobile device. The Interactive Workout App lets subscribers turn their TV into a digital personal trainer, which should make exercising in front of the TV more engaging.
Still, it’s hard to say if the free electronics and unique apps will make a real difference when it comes to poaching customers from other pay TV providers. Fortunately, many consumers already regard AT&T U-verse as one of the best providers of quality internet, TV, and phone service. Free electronics or not, the best way a company can promote their products and services are with happy customers—which is something AT&T already has plenty of.