DirecTV Now is raising its prices, following price hikes from rivals Sling TV and YouTube TV within the last few months, as spotted by Cord Cutters. Later this month, DirecTV Now will raise its prices by $5 on all packages, bringing basic service to $40 a month and the premium package with all the works to $75 a month.
The price changes go into effect July 26th for new customers and will vary for current customers depending on their next billing date. “This puts us in line with the rest of the market,” AT&T told The Verge, pointing out that there’s still a $15 a month WatchTV option.
The news comes a few weeks after AT&T fully acquired Time Warner for $85 billion, a deal that took a significant sum out of the carrier’s coffers. Now the company’s moves to raise admin fees and DirecTV Now prices all seem to be ways for it to get back in the black.
Just last week, Sling TV increased its Sling Orange package, which contains networks like Disney and ESPN, to $25, while the combination of Orange and Blue can be obtained for $40, which matches the new cost of DirecTV Now’s basic deal.
The number $40 appears to be the sweet spot that over-the-top platforms are charging, as YouTube raised its TV package to that amount in March. The price hike came after YouTube added new channels like Cartoon Network and TNT to its offering.