DirecTV hikes prices despite Disney blackout
September 9, 2024
By Chris Forrester
US pay-TV operator DirecTV is raising its subscription price despite still being in dispute with Disney over carriage of certain channels. The price rises will be effective on or after October 6th.
The broadcaster says customers will notice adjusted rates on their next billing cycle. The company is updating prices for both its satellite and internet-based packages “to remain competitive and address rising content distribution fees from TV networks”.
“TV networks are continuing to increase the fees they charge DirecTV for the right to distribute the content they produce, including movies, shows, and sporting events. We remain steadfast in our commitment to bring you the best programming at a fair and reasonable price,” the DirecTV statement added.
Currently DirecTV subscribers are facing blackouts of several major Disney-owned channels, including the ABC network, ESPN, Disney Channel, Nat-Geo, Freeform and FX. The dispute follows the expiration of a five-year contract between the two companies on September 1st, with ongoing negotiations failing to reach an agreement.
Disney is arguing for higher fees to cover increased programming costs, while DirecTV counter-argues that Disney is demanding more money while shifting content to its streaming services. DirecTV’s Chief Content Officer, Rob Thun, has publicly criticised Disney for seeking maximum profits at the expense of consumers, claiming the company is forcing subscribers to pay for extensive bundles that include unwanted channels.
DirecTV is majority-owned by telco giant AT&T, with a minority stake held by TPG. The service had 11.3 million subscribers (inclusive of AT&T’s U-verse TV) as of the end of 2023, according to numbers from Leichtman Research Group. That’s down from a peak of 25.5 million at the end of 2016.
As of Ocober 6th, the price of DirecTV Stream Choice (its on-line stream) is going up by $6, to $114.99/month, and DirecTV Stream Ultimate is increasing $10, to $129.99/month. DirecTV’s satellite TV packages are also getting price hikes of between $2 and $10 monthly, depending on tier, also effective starting October 6th.
· BASIC CHOICE: Increase of $2
· FAMILY BASIC: Increase of $3
· PREFERRED CHOICE: Increase of $4
· SELECT SERIES: Increase of $5
· ENTERTAINMENT SERIES: Increase of $6 to $7
· OPTIMO MAS: Increase of $7
· CHOICE XTRA: Increase of $8 to $9
· PREMIER PACKAGE: Increase of $9 to $10
· ACORN TV: Increase of $1