“I believe there is a segment of our customer base where, given the choice, they would take some advertising for a $ 5 or $ 10 reduction on their cell phone bill,” Stankey told Reuters. AT&T confirmed these comments to CNN Business. (The telephone operator owns CNN’s parent company, WarnerMedia.)
The new plan could come “in a year or two,” he told Reuters.
Although ad-supported phones have not taken off in the past despite the efforts of Virgin Mobile and Sprint, AT&T (T.) he said it has the benefit of better ad targeting. The ads will be tailored to identified customers across multiple devices, a strategy that could also help the company sell ads for more money, Stankey said.
Stankey told Reuters that the company would benefit from running an ad-supported version of the HBO Max streaming service next year.
AT & T̵
7;s advertising business called Xandr works with data outside the company to personalize ads, but in the long run
could face legal scrutiny and privacy issues over the use of such data.
Stankey told Reuters: “I don’t know if we can count on it forever.”