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Will a Price Hike Help to Boost AT&T’s DIRECTV Now Customers?

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AT&T’s DIRECTV Now raises prices

Telecom carrier AT&T (T) has reportedly changed its pricing policy for its DIRECTV Now streaming TV service and raised its monthly subscription plan by at least $10 per month. While the company has removed some channels from the cable-like television package, it is also launching two new packages, including HBO, to replace its existing multi-tiered lineup.

Like AT&T’s DIRECTV, Hulu’s Live TV service and Netflix (NFLX) have also raised their monthly subscription prices recently. While Hulu has raised the cost of its on-demand live TV subscriptions, it has reduced the monthly rates of its basic on-demand offerings. Netflix has also increased its subscription prices by 13%–18% in the United States. Hulu is owned by the Walt Disney Company’s (DIS) ABC, Comcast’s (CMCSA) NBCUniversal, 21st Century Fox (FOXA), and AT&T’s WarnerMedia.

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DIRECTV Now pricing

Instead of DIRECTV Now’s current multi-tiered service, the company has rolled out two new plans for its customers. Both the packages, Plus and Max, will have HBO, where customers can stream shows like Game of Thrones, live TV channels, hit movies, and documentaries. While the Plus plan is priced at $50 per month, Max will cost $70 a month, higher than the current basic plan of $40 per month.

AT&T’s DIRECTV Now customers

AT&T has been focusing on its streaming service offering, DIRECTV Now, to win customers amid a declining pay-TV subscriber base. However, AT&T lost 267,000 DIRECTV Now customers in the fourth quarter of 2018 compared to 368,000 net customer additions in the fourth quarter of 2017 after the company’s introductory offer ended.

Therefore, the inclusion of HBO in DIRECTV Now’s new plan might help it to attract customers, boost revenues, and help AT&T to pay off its massive debt, which came as a result of the Time Warner acquisition.

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