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T-Mobile Passes Netflix Price Hike Through to Subscribers

T-Mobile is getting ready to raise prices for subscribers who have taken advantage of its “Netflix On Us” promotion: The mobile carrier will begin charging existing customers who have participated in the promotion an additional $2 per month to account for Netflix’s recent price increase.

Consumers will see their bill go up starting on 6/2. Those who want to avoid the price increase can instead opt for T-Mobile’s new mobile plan, dubbed Magenta. They’ ll continue to get Netflix for free as a value-add, but with a downgraded tier. T-Mobile is giving Magenta customers access to Netflix’s standard-definition “basic” plan, which also only includes streams to one device at a time. Previously, customers could get access to Netflix’s HD with up to two simultaneous streams plan for free.

T-Mobile first introduced its free Netflix offer for unlimited family plans in September of 2017. The carrier is receiving a wholesale discount on Netflix’s retail pricing. However, T-Mobile COO Mike Sievert said at the time that  it was not a big discount, adding that the Netflix promotion was “a big investment” for the carrier.

Netflix announced in January that it was raising the prices for its streaming plans this spring. The company’s standard plan now costs $12.99 per month, while its basic plan is $8.99 per month. Customers who want to stream media in 4K, or access up to 4 streams at a time, need to pay $15.99 per month.

 

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