DirecTV Now has notified customers that it will raise prices across its four tiers by $5 a month.
“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,” said the virtual pay TV service’s operator, AT&T, in a statement to Cord Cutters, which broke the story.
The monthly price for DirecTV Now’s base “Live a Little” package will be $40, with the top-end “Gotta Have It” tier rising to $75.
The move follows similar price increases by rival virtual MVPDs, with Sling TV announcing last week that its base price would increase by $5 to $25 a month.
Operators of virtual services are trying to hold the line on low price points, enticing consumers who are turned off by the increasing costs of traditional pay TV services. But vMVPDs are also impacted by the same physics of rising content costs.
“Programming fees … only go in one direction, and that’s up!” said Sling TV programming chief Warren Schlichting, in a blog post announcing the price increase.
Cord Cutters reported that the price increases will go into affect on July 26 for new customers. Existing subscribers will be impacted, too, but the timeline is unclear as to when that will happen.