Sprint Corp (S - Free Report) has emerged a major player in a saturated and intensely competitive market on the back of diverse unlimited data plans.
Sprint is reportedly planning to make its unlimited services more attractive by offering free access to online video streaming service provider, Hulu. Hulu is a joint venture between The Walt Disney Company (DIS - Free Report) , Twenty-First Century Fox Inc (FOXA - Free Report) , Comcast Corp (CMCSA - Free Report) and Time Warner Inc. Its basic service includes TV series, movies, original content and other programming with limited or no commercials.
Currently, Sprint carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The deal is expected to be officially launched on Nov, 17 and will be available to new and existing Sprint unlimited subscribers. As part of the promotion, users will get free access to Hulu's traditional $7.99 per month streaming plan. Each line on a Sprint family plan will be eligible to get their own Hulu account.
The offering is anticipated to strengthen Sprint’s position in the already competitive domestic wireless industry.
After almost a year of fierce competition over postpaid and prepaid wireless service prices, national carriers have recently engaged in a war over freebies and discounts on smartphones. Similar bundle deals are common among telecommunication companies. In September 2017, T-Mobile US Inc (TMUS) announced the inclusion of online video streaming service provider, Netflix Inc. (NFLX) in its unlimited postpaid wireless service, T-Mobile ONE.
In April 2017, U.S. telecom behemoth, AT&T Inc (T) unveiled plans about bundling a subscription of HBO with its Unlimited Plus wireless service, with no extra charges. Prior to this, AT&T also chalked other promotional offers, providing free access to HBO for a year on it’s over-the-top (OTT) online streaming service, DirecTV Now.
Despite such positives, Sprint portrays a disappointing price performance. In the past three months, shares of Sprint have lost 28.6% compared with the industry’s decline of 11.1%.
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