DirecTV to Increase Prices Amid Contract Dispute and Channel Blackouts

DirecTV has announced that it will be raising prices for its satellite TV and streaming television services, just as customers are grappling with the loss of popular channels such as ESPN, ABC, and other Disney-owned networks. The price hikes are set to take effect on or after October 6, 2024, and were outlined in notices sent to subscribers earlier this week.

In the customer notice, DirecTV states that the price adjustments are necessary to remain competitive in the market while still delivering quality programming. The company attributes the increases to rising fees charged by TV networks for content distribution, including movies, shows, and sporting events. DirecTV assures customers that it remains committed to providing the best programming at a fair and reasonable price.

Starting October 6, the cost of DirecTV Stream Choice will rise by $6 to $114.99 per month, while DirecTV Stream Ultimate will increase by $10 to $129.99 per month. DirecTV's satellite TV packages will also see monthly price hikes ranging from $2 to $10, depending on the package tier. Additionally, regional sports fees for some satellite customers will increase by up to $2 per month, although some subscribers will be unaffected.

The timing of these price changes is unfortunate for DirecTV, as the company failed to reach a distribution agreement with Disney before their prior contract expired on September 1. As a result, subscribers lost access to ESPN, ABC, SEC Network, Disney Channel, NatGeo, and Freeform, among other Disney-owned networks. In an effort to appease customers during the blackout, DirecTV is offering a one-time $20 credit. They are also providing a $30 credit for subscribers who sign up with alternative providers such as Dish Network's Sling Orange package or Fubo's streaming services.

DirecTV, majority-owned by AT&T with a minority stake held by TPG, currently boasts around 11.3 million subscribers, including AT&T U-verse TV customers. This number is a significant decline from its peak of 25.5 million subscribers in 2016, as estimated by the Leichtman Research Group.

As customers face the frustration of channel blackouts and impending price hikes, some have expressed their displeasure with DirecTV on social media. Calls for a boycott and criticism of the company's pricing practices have been making the rounds. It remains to be seen how these developments will impact DirecTV's subscriber base moving forward.