Roger Fingas
To lure in customers where ISP choice exists, AT&T is offering a free 32-gigabyte Apple TV 4K to new Fiber Internet subscribers — with a few catches.
The deal is only available to people choosing a 300-megabit plan, which costs $70 per month, or with the $90 gigabit tier. Customers must also use the code "GET4KTV" at checkout, and lock themselves into a 12-month contract.
AT&T is a long-time Apple partner, and last year used a similar promotion to draw people to DirecTV Now, its internet TV service. Customers were able to claim a free Apple TV 4K as long as they pre-paid for three months of streaming. Since that put the cost of the set-top at $105 versus its normal $179, some people signed up just to later cancel and keep the cheaper hardware.
Apple may be willing to take a hit on Apple TV profits for multiple reasons. The company for instance faces tough competition in the world of streaming devices, with Roku, Google, and Amazon all making popular options. Many TVs now have competent "smart" apps, and/or support for Google Cast.
A broad install base could also help support Apple's upcoming video service, featuring $1 billion or more in original content. That may launch as soon as March or April, offering the original video free to Apple device owners, with third-party subscriptions shoring up revenue. In the long term the company is rumored to be hunting for "tentpole" shows that could prop up a paid first-party subscription.
Christine McKee
William Gallagher
Malcolm Owen
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8 Comments
Not seeing the connection between the AT&T promo and Apple's willingness to "take a hit on Apple TV profits." Seems like pure speculation that AT&T is receiving a discount on the Apple TV's it is offering customers.
Last Fall AT&T ran a deal for AT&T customers you could get an ATV 4K for $99, for a limited times. When tried ordering on my phone and webform was bit difficult to use on mobile so I went to my computer and tried ordering. But AT&T said it was no longer available and they were out of stock. I went back to my phone and it still let me order on my phone, I order 2 and dealt with their bad web form and I was able to get them. It took longer than they said to get but they still honor the order even though they claimed to be out of stock.
Look like AT&T is really pushing ATV for Apple. This offer is only for a limited number of people since AT&T fiber is not available in most places.
I am DTV subscriber and have been for a long time, i was thinking of jumping onto the DVT Now offer, but it still has lots of limitation, like DVR, they do have it now, but cloud based and you have to pay extra for the amount of storage you want, also DVT Now only allows two device to stream at one time, I have 3 TV in the house which could be on at the same time, as well as I stream to my phone or Ipad.
As I have made known before I am an AT&T retiree. I worked in a Central Office where all the hardware for this stuff lives. According to my former colleagues AT&T has decided the future lies in fixed wireless 5G and fiber to the home deployment is being wound down. But if AT&T does what Verizon is doing and makes fixed wireless 5G expensive and limited (namely $70/mo with a very small data cap) this is idiotic with a capital “I”.
AT&T fiber still not available at my address, and since Google Fiber is pulling out of my area, it likely won't be for the foreseeable future.