DirecTV Sets Rate Hikes for 2014, Raising Risk of Cord-Cutting in New Year

No. 1 satcaster to increase programming fees an average of 3.7% effective Feb. 6, 2014

DirecTV, which has raised rates every year for the past decade, disclosed that it will increase pricing an average of 3.7% in February — and the latest hikes could be the last straw that pushes some satellite TV customers to cancel service.

The satcaster defended the hikes by claiming programming fees it pays to TV networks will rise at an even faster pace next year.  Other pay-TV providers also continue to blame rapidly rising fees from broadcast nets, local stations and cablers for higher monthly bills, including Dish Network, which said it will increase pricing for most subs by $5 in February 2014.

DirecTV said the 2014 rate hikes, which go into effect Feb. 6, are among the lowest in the pay-TV biz. “In 2014, the programming fees we pay to the owners of these television channels will increase about 8%, but DirecTV is adjusting the average prices our customers pay by less than half of that amount,” the company said in an emailed statement.

SEE ALSO: DirecTV CEO: We’ll Have to Raise TV Prices Again in 2014

So-called cord-cutting — the phenomenon of consumers abandoning traditional cable and satellite TV — was a small but tangible trend in 2013. DirecTV lost 84,000 U.S. subscribers in the second quarter of 2013, only its second-ever quarterly decline. The operator rebounded in Q3 with a net gain of 139,000 (thanks in part to the monthlong CBS and Showtime blackout on Time Warner Cable).

The new pricing for DirecTV programming packages is as follows: The Entertainment tier will increase from $54.99 to $56.99 for existing customers and will be $57.99 for new customers; Choice will increase from $64.99 to $66.99; Xtra will increase from $70.99 to $73.99; Ultimate will increase from $77.99 to $81.99; and Premier will increase from $124.99 to $129.99.

SEE ALSO: Pay-TV Prices Are at the Breaking Point — And They’re Only Going to Get Worse

DirecTV, the second-biggest pay-TV provider after Comcast, had 20.16 million U.S. subscribers as of the end of September.

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  1. Willy T says:

    If a Channel is dropped paying customers should b notified, and given a chance to comment or drop the service, that’s what
    Cox cable did serveral times, when this sort
    Of thing happened! :(

  2. Chris says:

    Direct TV….Go ahead and drop TWC Just gives me another reason to drop you guys that much sooner. Sick of this crap with you guys!!!

  3. Jim C says:

    Im currently paying $147.45 p/mo to watch directv. WOW, I never thought i would do that. Now directv is dropping the weather channel? I have deceided to go back to digital tv and bank the 147.45 p/mo. It’s just to much money for television. Direct TV your scamming your loyal customers!

  4. Lynn T. says:

    TWC and Fox news is about all I watch! I’m already paying about $130 month without the movie channels which is ridiculious!! Drop TWC and you can have it all back! I will get cable I’ve been wanting faster internet anyway!

  5. k bruce says:

    dropping twc would be one of the worst things you can do . Most people depend on twc on a daily basis. Twc has saved lives . Would you want to be held responsible for peoples deaths due to severe weather because twc is not available anymore? Think about lives not money.

  6. ALEX M FORMER DIRECTV CUSTOMER says:

    DIRECTV D- RATING WITH BBB
    TIME WARNER, CONCAST , BRIGHTHOUSE ALL CABLE COMPANYS F RATING HOWEVER

    DISHNETWORK, A- RATING, LOOK AT BETTERBUSNESS BUEARU YOU DECIDE CALL DISH I DID AND COULDNT BE HAPPIER

  7. Jim Healey says:

    We are at the breaking point. Any more increases from DTV and we pull their plug. As simple as that. We are no longer under contract and can cancel anytime. They’ve had enough increases. We don’t watch any sports so no big deal.

  8. Ezzy Klein says:

    Direct TV is owned by News Corp (FOX)

  9. Road Rage says:

    Dish is NOT owned by DirecTV. Although they did consider a merger in 2013 but nothing ever came of it. Echostar owns Dish.

  10. I dropped Direct TV after being with them 13 yrs. They accidentally shut off my service on X~mas day & would not restore it until the following day. When they used the customers as hostages and blacked out FX & local channels that I was paying extra for and didn’t even offer a reduction in price for services not rendered, that was it. By the time I dropped them I had to let go of a lot of channels to keep the price down. So I was paying 114.00 just for the basic, which were mostly paid programming & crap.
    I went to Dish and I am SOOOOOoooooo happy I made the change! Direct has been bugging me to return since, and seeing they’re increasing again only gives me confirmation I made the right choice.

    • Jim says:

      Dish is raising their rates as well, so is everyone. The cost of programming (Disney, Fox, MSNBC, HBO, MTV, etc) go up each year and those costs are what make up the majority of a customer’s bill.

  11. FRED KENEPP says:

    DIRECT TV I’LL BE ONE OF THE FIRST TO QUIT YOUR SERVICE. IF YOUR RATES GO UP AGAIN. THIS IS GETTING MOE COSTLY THEN FEEDING ME AND MY WIFE. THANKS FOR NOTHING.YOU RUN MORE ADS THEN ANYTHING THAT SHOULD PAY YOUR COSTS. 30 MIN. SHOW IS ONLY 15 MINS.LONG.

  12. Ezzy Klein says:

    It’s getting expensive to watch TV

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