DirecTV: Price Increases and Channel Outages Affect Subscribers

The Pay-TV provider DirecTV is facing turbulent times. While customers are already grappling with the loss of ESPN, ABC, and other Disney channels due to an unresolved contract dispute, the company has now announced an upcoming price increase for its services. Starting October 6, 2024, the prices for DirecTV’s satellite and streaming services will be raised. Customers have already been informed of these adjustments this week, which will be reflected in their next billing cycle. According to DirecTV, the adjustment is necessary to remain competitive in the market and to ensure the best possible programming offering. "TV networks continue to increase the fees they charge DirecTV for the right to distribute their content," the customer notice states. The monthly cost for the DirecTV Stream Choice package will increase by $6 to $114.99, while the DirecTV Stream Ultimate package will be raised by $10 to $129.99. The prices for satellite TV packages will also increase by $2 to $10 per month, depending on the tier. Additionally, regional sports fees for some satellite customers will be raised by up to $2 per month, depending on the zip code. However, some subscribers will not experience any changes. The price increases come at an inopportune time, as the contract with Disney expired in early September. As a result, ESPN, ABC, SEC Network, Disney Channel, NatGeo, Freeform, and other Disney channels were removed from the DirecTV lineup. To stem the wave of cancellations, DirecTV is offering its customers a one-time credit of $20 for the missing Disney channels. Additionally, subscribers who sign up for Dish Network’s Sling Orange package or Fubo’s streaming services can receive an additional credit of $30. DirecTV is majority-owned by AT&T, with a minority stake held by TPG. According to estimates by the Leichtman Research Group, the service had 11.3 million subscribers at the end of 2023, including AT&T U-verse TV, significantly fewer than the peak of 25.5 million at the end of 2016.