Internet TV packages are getting pricier — including AT&T's
AT&T is raising prices on its streaming video bundle just weeks after telling the government that it's merger with Time Warner would result in lower prices for consumers.
The telecom giant added $5 to the price of DirecTV Now's cheapest online channel bundle, which now costs $40 — about the same as everyone else's — while removing HBO from one of its packages. It also jacked up its "administrative fee" to $1.99 per month.
This story from Ars Technica is a good reminder of what the company said it would do during the extensive court battle with the Justice Department and its real-world economics. The company says it also offered free channels to AT&T Unlimited subscribers.
AT&T isn't alone. Streaming video providers are entering a new phase of their lifecycle: trying to cover the cost of the channels they offer. Mid-year seems like a good time for a rethink on pricing, it appears.
Sling raised prices in June. Sling remains the cheapest offering with a $25 a month package called Orange, which includes ESPN. It is also offering individual channel choices too. Sony's Playstation Vue said this month it is raising prices for channels by $5 to $44.99 per month for the lowest tier, called Access, or $84.99 for the highest tier called Ultra. YouTube's YouTube TV, a cable like bundle raised its fee by $5 in March to $40.
Streamers have long pitched themselves as a cost efficient alternative to existing TV bundles, but it's worth remembering that the average price of broadband in the US is $58 per month, according to this FCC report.