AT&T (NYSE: T) is serving up a new promotional offer that gives U-verse customers a bundle of broadband, HBO and a year of Amazon Prime for $40 for one year.
A potential allure of the service is that users will be able to get the Prime service, which is traditionally priced at $99 a year and includes free two-day shipping of Amazon store products.
This bundle offering may be new, but it's not unfamiliar territory for AT&T.
In April, the service provider launched a similar 18 Mbps broadband, HBO bundle promotion for $39.99 a month. However, after the promotional period ends, that price jumps to $70-$80 a month.
Under the new plan, U-verse customers will be able to get their U-Basic TV package and their Max Plus (18 Mbps) broadband tier. AT&T's earlier video and broadband bundle promotion allowed customers to add the Max Turbo (24 Mbps) speed tier for a promotional price of $49 per month, and Power (45 Mbps) for a one-year promotional price of $59 per month.
Despite the allure of the new offering, FierceCable noted that the service provider does not specify what other channels the basic video package includes. Being able to provide top channels like ESPN would also be a key attraction for new customers that are considering switching from cable to U-verse.
AT&T may continue to experiment with new promotions in the coming year, but this latest offering reflects the growing movement that users see greater value in broadband versus traditional linear TV, where they have less control over their experience and the content they can access.
While AT&T won't release its earnings until Oct. 22, U-verse broadband was a large factor in the telco's second-quarter earnings report. During that period, the service provider added 488,000 subscribers to reach a total of 11.5 million. However, it only added 190,000 new U-verse TV subscribers.
A similar trend took place at both Verizon (NYSE: VZ) and Cincinnati Bell in the second quarter of 2014. Verizon added 139,000 net new FiOS Internet customers, while Cincinnati Bell added 6,700 Fioptics Internet subscribers.
For more:
- see AT&T's promotion
- here's FierceCable's take
Editor's Corner: Verizon, Cincinnati Bell's broadband service suites take charge of their wireline portfolios
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