This year’s annual price hike is especially tricky for DirecTV. It doesn’t want to alarm the FCC or Justice Department, which are reviewing its planned merger with AT&T. Execs also fear that increases will alienate consumers: DirecTV lost U.S. subs in Q3, surprising many analysts. CEO Michael White told them “we are seeing that consumers are becoming much more price sensitive in this economic environment….In the quarter, we saw a pretty significant increase in those [who dropped service] that mentioned price value.” He added that it’s a struggle to raise prices “when median household incomes are flat, particularly for those making less than $50,000 a year.”
DirecTV will maintain its separate Regional Sports Fee, with prices that could rise as much as $2.14 a month depending on the regional sports networks (RSNs) in the market where the customer lives. “In certain areas of the country (determined by ZIP code), DIRECTV is …contractually obligated to carry multiple RSNs.”
Subscribers with a promotional offer, including new customers with a 12 month discount, won’t be affected by the price increases. At least not yet.
deadline.com
DirecTV will maintain its separate Regional Sports Fee, with prices that could rise as much as $2.14 a month depending on the regional sports networks (RSNs) in the market where the customer lives. “In certain areas of the country (determined by ZIP code), DIRECTV is …contractually obligated to carry multiple RSNs.”
Subscribers with a promotional offer, including new customers with a 12 month discount, won’t be affected by the price increases. At least not yet.
deadline.com