T-Mobile Us Inc (NASDAQ:TMUS) is planning to launch a pay TV service in 2018.
The T-Mobile pay TV service is being developed with the help of Layer3 TV, Inc., which the wireless company has signed a definitive agreement to acquire. Layer3 TV, Inc. is a service operating in five cities that combines TV, streaming video content and social media content under one roof.
T-Mobile says that its desire with launching this new pay TV service is to disrupt the current market. It claims that customers are unhappy with their cable providers and deserve another option that will enhance their TV viewing experience.
“The world is changing – with mobile video, streaming services, cord cutting, original content and more — and yet, the old guard simply can’t – or won’t – evolve,” Mike Sievert, COO of T-Mobile, said in a statement. “It’s time for a disruptor to shake things up and give people real choice like only the Un-carrier can.”
T-Mobile says that the new pay TV service launching next year will take full advantage of its nationwide retail presence. It notes that by using current content creators, the company will be able to disrupt legacy pay TV models that cable and satellite providers have been relying on.
T-Mobile is promising that its new pay TV service will “ditch everything you hate about cable and make everything you love about TV better.” Only time will tell if it can keep this promise when the new service launches next year.
TMUS stock was up 1% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.