
Invites are out, and it’s official. Uncarrier 5.0 is coming in June. T-Mobile today sent out invites to select members of the press to join them in Los Angeles on June 18.
Cricket Wireless did this to great success. Over 2 million subscribers to its Muve Music by bundling it to its Android Smartphone rate plan.
http://www.billboard.com/biz/articl...music-surpasses-two-million-subscribers-in-us
Muve Music Surpasses Two Million Subscribers in U.S.
The music labels are willing to give a BIG discount to carriers who bundle it (free) with their rate plan. Cricket Wireless paid the music labels approximately $2.50 per subscriber per month.
The answer is simple. Not all subscribers who have it use it (see the 55% number below). And by bundling, the music industry will have 30 million plus subscribers from T-Mobile.
But not all Muve Music subscribers actively use the service. As noted in a recent Billboard magazine article, just 55% of Muve Music subscribers used the service in May, the latest period for which Billboard was given a figure.
Imagine this scenario:
200 million paying subscribers because T-Mobile, AT&T, Verizon, Sprint all bundle music to their smartphone plans. Each subscribers will cost just $2 a month.
$2 x 200 million x 12 months = $4.8 billion trade revenue.
The trade recorded music revenue in the USA was $4 billion last year. This is downloads, CD, streaming. Trade revenue is the revenue the music labels get.
Look at AT&T $15 a month for 5 lines Beats Music plan. That's $3 per line. T-Mobile is taking it another step forward and following Cricket Wireless's Muve Music example. T-Mobile might pay as little as $2 per smartphone line. This is the holy grail for the music industry, having all the major carriers bundle music ($2 per smartphone line). T-Mobile success in this will force the other carriers to response.
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