“I believe there is a portion of our customer base where they have a choice of buying advertisements to cut their cell phone bill by $ 5 or $ 10,” Stankey told Reuters. AT&T confirmed these comments to CNN Business. (The telephone company owns CNN’s parent company, WarnerMedia.)
The new plan could come “in a year or two,” he told Reuters.
Although ad-supported phones haven’t launched in the past despite efforts from Virgin Mobile and Sprint, AT & T. (T.) said it has the benefit of better ad targeting. Ads are tailored to customers identified on multiple devices. That strategy could also help the company sell ads for more money, Stankey said.
Stankey told Reuters that the company would also benefit from an ad-supported version of the HBO Max streaming service over the next year.
AT & T̵
7;s advertising business called Xandr works with data outside of the company to tailor ads, but for the long term
may have legal scrutiny and privacy concerns over the use of this data.
Stankey told Reuters: “I don’t know if we can rely on it in the long run.”