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Verizon (NYSE:VZ) is getting some thank you cards in the mail from data hogging applications now set free with the new unlimited data plan. However, all is not sunshine and smiles. In the near term, one huge media company is screwed.
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Pandora (NYSE:P) is a massive data hog as it streams music. And, from what I understand, power users can leave it on ALL DAY. Now parents no longer need to pay overage charges if little Sally has the Katy Perry channel on repeat during a 24 hours cycle. Thanks, Verizon!
The same is true for Spotify. I subscribe to Spotify and listen most of the day. I also listen anytime I am in the car. Like Pandora, Spotify can become a HUGE data hog. But now, WHO CARES??
Although Google Music (NASDAQ:GOOG) wins the same as Pandora and Spotify, YouTube is also a huge winner on the video side. Especially now that YouTube is promoting its own channels to compete with TV, Verizon has set users free from worrying about how many videos they can watch before getting a nasty surprise on their next bill.
Lastly, Facebook (NASDAQ:FB) wins because the site is becoming a more popular place to upload videos, and now those with unlimited data plans won’t think twice.
Now for the biggest loser: Sirius XM (NASDAQ:SIRI). Sure, Sirius allows users to listen online. However, their core value proposition is satellite radio. If I can now stop worrying about my data hogging apps such as Pandora and Spotify, I am much less likely to pay for an extra subscription to Sirius (unless, of course, I can’t live without specific programming). Moreover, based on app usage by my friends under 45, I’d guess this same demo will forgo a Sirius subscription when they buy a car. In the longer run, Sirius is clearly going to compete more heavily over the Internet, but for the moment this isn’t a good environment for peddling satellite subscriptions.
Well, thanks Verizon!! I’m ready to go crazy using data.
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