freelarge
06/25

T-Mobile Says: Your Online Radio Listening is now Free

free

Remember when some broadcasters dismissed online radio, arguing it would never catch on because the data plan caps would keep a lid on demand and discourage ongoing use of the platforms?

Well, I and others long ago revealed the flaws in that argument based strictly on the relatively thin data requirements of audio streams (especially when compared to the real data hog: Video).

But now comes a new statement from underdog mobile provider T-Mobile: Stream all the music you want – data charges do not apply.*

Yes, the all-you-can-eat buffet for streaming radio fans has arrived!

Last week, T-Mobile introduced (from ArsTechnica)…

…a program they’re calling Music Freedom, under which songs from certain streaming music providers no longer count against customers’ monthly data cap. The provider list includes Pandora, Rhapsody, iHeartRadio, iTunes Radio, Slacker, and Spotify, as well as a few others, like Samsung’s Milk. T-Mobile customers will also be able to vote on the Music Freedom site about other music services from which they’d also like to stream “for free.”

Now let’s call this what it is: A PR stunt. And one that appeals primarily to the fraction of streaming music consumers who feel constrained by the cost and/or limits of their data plans.

Still, we should never underestimate the power of the word “free.” And this could become something of a trend. Given that some handset-makers are monetizing streaming radio platforms directly and indirectly, it makes less sense to cap usage than to open usage and monetize the value of the data – what it brings to you – rather than the data itself.

After all, it’s what the data enables that creates its value. Not the sheer tonnage of bandwidth itself.

In fact, to the device-makers, each mobile phone is the equivalent of what terrestrial broadcasters would call a broadcast tower: A piece of hardware they built and own through which content flows that the hardware-owner monetizes through advertising, licensing, subscription, or some combination of all three.

So the point isn’t that every mobile phone service provider will necessarily follow suit and make their streaming bandwidth free. It’s that we should not assume they won’t.

To consumers, it’s all about value. And service providers will do what they can to jockey for advantage and prove their value to consumers who have choices – even to consumers who make the cheapest and easiest choice of all right now: Radio.

(*Technically, “free” does not preclude T-Mobile from throttling speed for super-heavy users, but good luck in communicating that potential downside to consumers, critics)

* = required field
  • http://www.backbone.com Paul Kamp

    While the main page says “Music Freedom” it lists Sirius XM, TuneIn and Soundcloud. This would mean all of “radio” would be available including spoken word and talk. No reason for the broadcasters not to move forward with their internet radio plans.

  • Albert Menacher

    Interesting move and good PR-Stunt especially in comparison of what the German T-Mobile (the market leader in Germany) does. They don’t count the streaming data for your Spotify subscription if you book Spotify as an add on to your T-Mobile contract. Which is a much worse deal for the users as it does not give them any freedom on the content provider service they want to use.

  • Josh Colletta

    You’re assuming that they HAVE such plans.

  • http://www.markramseymedia.com Mark Ramsey

    Welll T-mobile does

    Mark Ramsey

  • Josh Colletta

    Yes, but I was referring to traditional radio stations. The lack of comprehensive Internet strategies in the industry is disappointing at best and downright damning at worst.

  • http://www.markramseymedia.com Mark Ramsey

    I ain’t gonna disagree with that! Thanks.

    Mark Ramsey

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