T-Mobile delays rollout of video service poised to challenge cable, Apple & others

The U.S. branch of T-Mobile is pushing out the launch of a video service it's hoping will pose a challenge to the cable TV industry, and could also compete not just with other internet TV services but Apple's upcoming video platform.

The original goal was to launch in 2018, but the project is proving more complex than anticipated, according to Bloomberg sources. T-Mobile executives reportedly decided to develop a more advanced service rather than just produce one combining cable channels and other online content, which would've made it equivalent to options from Hulu, Sling TV, and YouTube TV.

To prepare for a launch, T-Mobile bought Layer3 TV in January for $325 million. The latter offers hundreds of channels for $80 per month, but only operates in a small number of U.S. cities.

The original announcement for the proposed service used multiple content sources at once, with Level3 TV shown alongside Netflix and other programming. At the time, details about how the service worked relating to hardware and software were not advised, nor how much T-Mobile customers would be expected to pay.

T-Mobile has also been trying to secure mobile-oriented distribution rights, a process which has proven complex at every turn, the Bloomberg sources said.

It's unknown when the service will launch apart from 2019, but it will face tough competition from new and existing rivals. Apple alone is spending upwards of $1 billion on an initial slate of shows premiering next year, possibly as part of a content bundle including Apple Music and gated material on Apple News.

That would replicate Amazon's approach with Prime. While Prime customers are nominally paying for speedy shipping, they also get access to Prime Video, a slice of Amazon Music, and other perks.

6 Comments

AI_lias 8 Years · 436 comments

About 6 years ago

So this will be like a combination of Netflix and YouTube TV, from what I see. Not sure how much it would challenge Apple, unless we're talking about something Apple wants to do but hasn't announced yet. To me it will challenge YouTube TV first and foremost, and Netflix, Prime video, etc.

backstab 11 Years · 138 comments

That's awesome. They should definitly focus on that, rather than try and get reliable cell signal to Los Angeles beach area.

jbdragon 10 Years · 2312 comments

I cut the cord as I was tired of paying for a bunch of channels I didn't want. Nothing at this point has changed. It's all still bundles, even from places like SlingTV. Nothing has really changed other than who you're giving your money to. I'm sure not paying $80 a month. In fact I get most of my TV watching right from the antenna. As they say, what you can't watch, you can't miss.

GeorgeBMac 8 Years · 11421 comments

Are they planning to combine this with 5G to challenge the cable boxes? I suspect this isn't happening in a vacuum.

dkhaley 7 Years · 57 comments

jbdragon said:

I cut the cord as I was tired of paying for a bunch of channels I didn't want. Nothing at this point has changed. It's all still bundles, even from places like SlingTV. Nothing has really changed other than who you're giving your money to. I'm sure not paying $80 a month. In fact I get most of my TV watching right from the antenna. As they say, what you can't watch, you can't miss.

Based on their channel lineup (in Dallas), their only plan is targeted at people who want a full cable package, but want to pay less. It includes those sports networks, including the regional sports networks, which are responsible for the cost of most cable packages. They also carry the major broadcast networks and the cable networks from all of the major providers.

For people who want a full cable package it is a good deal. List price is $100 but its currently offered at $80, plus $10 per set-top box. I can't tell if they cram fees onto the bill.