After debuting lower-cost streaming option, AT&T raises DirecTV Now prices

The company also recently raised administration fees by $1.23, netting it a potential $800M

Technology trends and news by Steven Loeb
July 2, 2018
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AT&T's lower cost streaming option, which it debuted just days ago in the wake of its acquisition of Time Warner, might start looking an even better option for its customers very soon.

Starting at the end of this month, the company is going to raise rates on its DirecTV Now streaming service by $5, the company has confirmed to VatorNews. That means rates will go up from $35 to $40 for the smallest package, which includes over 60 channels, and from $70 to $75 for the largest, which includes over 120 channels. 

"In the 18 months since our launch, we have continued to evolve our DIRECTV NOW products to serve this new customer set and compare favorably with our competitors. To continue delivering the best possible streaming experience for both new and existing customers, we’re bringing the cost of this service in line with the market — which starts at a $40 price point. This change is effective July 26 for new customers and varies for existing customers based on their billing date," an AT&T spokesperson told VatorNews. 

The news was originally broken in a Reddit thread over the weekend, which had users who had been informed of about the price increase in an email, which was then discovered by Cordcutters on Monday. 

DirecTV Now came out of AT&T's acquisition of DirecTV for $48.5 billion in 2015. While many customers are not going to happen with paying more for the same service, as Cordcutters pointed out, this actually puts DirecTV Now in line with what other services cost, including PlayStation Vue, which also costs between $40 and $75, depending on the plan.

Other streaming services have also recently raised their prices, including Dish's Sling TV, which currently has 2.3 million subscribers, larger than the 1.46 million subscribers DirecTV Now has as of AT&T's earnings report in April. Late last month, Sling announced a price increase for its Orange service, from $20 to $25 a month. 

YouTube TV also raised prices earlier this year, again by $5 a month, going from $35 to $40 a month, but that was the result of adding additional channels, including Turner, NBA TV, and MLB Network.

This also isn't the first time that AT&T has raised its prices since completing its $85 billion acquisition of Time Warner. Last week the company raised its administrative fees by $1.23, from 76 cents to $1.99. While that might not sound like a lot, it is expected to net the company an additional $800 million. 

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