AT&T is instituting a substantial price hike for its live TV streaming service AT&T TV Now: Customers who have subscribed to the service’s basic “Plus” package will see their bill go up by $15, to a total of $65 per month, starting next month.
The telco has started to inform existing subscribers about the price increase, which was also confirmed by a spokesperson. “We’re adjusting our pricing to reflect the cost to deliver content to our customers,” the spokesperson told Variety. “Customers can contact us at any time to review their plans or make account changes.”
Pricing for customers grandfathered into older plans is apparently also increasing, according to posts on social media. When AT&T first launched the streaming service under the DirecTV Now branding, it signed up early subscribers for just $35 per month. One of those early subscribers said on Reddit that he had been told his pricing would go up from $50 to $85.
The service has seen a number of price increases since its launch, including a $10 price hike just 7 months ago. And while DirecTV Now was initially positioned as a cheaper alternative for would-be cord cutters, those significant price increases haven’t exactly helped the service to appeal to price-conscious consumers.
AT&T ended its fiscal Q2 with 1.34 million DirecTV Now subscribers, losing 469,000 subscribers to the streaming service year-over-year. At the same time, the company’s traditional pay TV business also continues to decline. In the quarter ending June 30, AT&T lost a total of 778,000 Uverse and DirecTV subscribers.