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T-Mobile Adds More Video Services to Binge On, Including YouTube

By Evan Niu, CFA – Mar 17, 2016 at 1:00PM

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T-Mobile's Binge On service now includes all of the most important video services.

What happened?
Un-carrier T-Mobile (TMUS 0.23%) has announced that it is adding even more popular video services to its somewhat controversial Binge On program. The additions include Baeble Music, Discovery GO, ESNE TV, FilmOn.TV, Fox Business, KlowdTV, Red Bull TV, and, most importantly, Alphabet's YouTube and Google Play Movies. 

There are now over 50 video services that T-Mobile streams without counting as data usage, representing 70% of the video content that its customers watch on their mobile devices.

Does it matter?
While Binge On created a lot of controversy in January over whether the service equated to throttling or not (it does), it's still appealing because T-Mobile at least gives customers greater choice. Customers at least have the option not to use data toward video content, so long as that content is downscaled and "optimized." For those who don't mind using their data, they can stream at full resolution.

Controversy aside, Binge On is still a net positive offering and one of many reasons why T-Mobile continues to enjoy robust customer growth, particularly on the postpaid side of the business. Adding YouTube just makes it that much better.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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