AT&T is raising the monthly rate for some of its DirecTV Now streaming bundles by $5 per month.
The entry-level plan, “Live a Little,” will now cast $40 per month, with the “Just Right,” “Go Big” and “Gotta Have It” plans also seeing the $5 rate bump. The company’s Spanish-language bundle will remain unchanged at $45 per month.
The price hike follows a $5 increase in the base plan announced last week by Dish Network’s Sling TV streaming service.
As with Sling, DirecTV noted that it is adding new features to its product, justifying the price hike. Among other things, the company added cloud DVR functionality and more supported devices, while also adding more channels and local TV stations.
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In addition, most of the competitors in the streaming “skinny bundle” space have entry-level plans that begin at $40 per month, so the DirecTV increase brings it in line with competitors like Hulu with Live TV, and YouTube TV.
Of course, AT&T is also launching another streaming video service, AT&T Watch TV, which is free for certain unlimited data subscribers, and will be available for $15 per month to everyone in the near future.
In other words, AT&T is adding a new entry-level streaming service to its portfolio, allowing DirecTV Now to slide up one rung in the content ladder.
Price hikes are predictable. The "value added" seems marginal, except to provider bottom lines. As these bundle prices edge up, their value proposition versus cable video would seem to go down.