DirecTV now increases its prices with AT & T and HBO, fewer channels

The Plus package has a higher price of $ 10 than the previous entry-level package from DirecTV Now, the $ 40 Live A Little deal, which included 60 channels including A & E, AMC and Discovery Channel and MTV , which are no longer available on any new DirecTV Now package.

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Customers can keep the current package for $ 10 more

Current customers who want to keep the $ 40 package – or other previous offers such as the $ 55 Just Right package – with these channels can continue to do so, but their bills will increase by $ 10 starting on the 12 April.

This is just the most recent synergistic strategy adopted by AT & T, which saw its merger with CNN and HBO's parent company, Time Warner, confirmed by a federal appeals court two weeks ago. In June, AT & T launched WatchTV, a bundle featuring over 30 live channels and thousands of TV shows and on-demand movies, free for some unlimited AT & W customers. T or $ 15 per month for others, including non-AT & T consumers.

AT & T also plans to launch a new subscription service later this year, similar to Disney. Apparently, Apple is also interested in the market and has been planning a continuous content offering for a long time. The tech company has scheduled an event on March 25, and Apple is discussing with AT & T, CBS and other content providers to align HBO, Showtime and other channels for its services, Bloomberg announced Wednesday, citing people close to the file.

A sign that AT & T could worry about price rises? The parent company increases its free trial period of DirecTV Now from a week to a month "to seduce new customers and allow them to try the service," said Phil Swann, publisher of the news website The TV Answer Man.

It notes that AT & T lost 267,000 service subscribers in the fourth quarter of 2018; DirecTV Now has 1.6 million subscribers, said AT & T in its fourth quarter financial report, published Jan. 30.

Likely effects of DirecTV Now from AT & T change

With the restructuring of DirecTV Now's programming choices, AT & T's strategy seems clear – it uses HBO as a differentiator and becomes profitable, "said Todd Juenger, Senior Analyst at Sanford Bernstein, in a note. to investors.

By removing some channels – and the transmission costs of these networks – and including HBO, AT & T has a more profitable business, he says.

This decision could spark a fight between other broadband TV services, such as Hulu and YouTube TV, for customers leaving DirecTV, Juenger said. It could also cause other services to reduce their chains.

"With time, the day of judgment is inevitable," he said. "Even (the parent of YouTube) Google can not continue to sell a product to consumers at a price lower than its cost of acquisition, forever.Either the price must increase, or the reduction of programming, or the two (DirecTV Now) confirmed already knew which networks would be the most victims. "

Another possible recipient: Philo, a subscription-based streaming service ($ 16 per month) with over 40 channels including A & E, AMC, BBC America, Cheddar, Comedy Central, Discovery Channel, Food Network, Hallmark Channel, HGTV, ID, For Life, MTV, Nickelodeon and OWN.

Philo is supported by programmers A + E, AMC, Discovery, Scripps and Viacom, who initially invested $ 25 million to launch the service in November 2017.

TO CLOSE

Philo today launches a new TV service broadcasting live broadcasts, which will certainly attract the attention of people who are tired of paying high cable bills for channels that they do not watch. .
Time

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