For years, DirecTV, like many of its peers in the telecom industry, has been feeling the brunt of a growing consumer trend.
As streaming services become more popular among consumers for their convenience and affordability, traditional cable TV has been getting the boot.
A recent survey from digital security firm All About Cookies found that only 46% of Americans watch TV through traditional cable or satellite TV, while 76% said they watch shows through paid streaming services.
During the second quarter of 2024, traditional pay-TV providers saw a 12.6% decrease in customers, according to a recent report from MoffettNathanson. Cable providers lost 1.03 million subscribers, while satellite services such as Dish and DirecTV lost 495,000.
As consumers abandon cable TV, DirecTV has doubled down on developing its streaming business and quietly scaling back its satellite services.
On its website in June, DirecTV began warning new customers looking to sign up for satellite TV that the service is no longer available in all areas across the country. Instead, the company urged customers to sign up for its paid streaming services.
DirecTV makes a harsh move, angering customers
Now, DirecTV has another stern warning for customers that they may not like. Starting Oct. 5, DirecTV is raising prices for its satellite and streaming services, impacting new and existing customers.
Specifically, customers on DirecTV’s Choice plan, its second-cheapest satellite TV package, will see their monthly bill increase by $9 a month. Customers on the Ultimate plan will face an $11 increase in their monthly bill.
Image source: Fallon/Bloomberg via Getty Images
DirecTV Stream customers who have the Movie Extra Pack add-on will have to pay an extra $5 per month. Customers with Peacock Premium or MGM+ subscription add-ons will see their monthly bill increase by $3 or $1, respectively.
DirecTV has warned impacted customers of these pricing changes via email, and many took to social media platform Reddit to express frustration over their services becoming more expensive, with some threatening to switch providers.
“I’ve been pretty happy with DIRECTV Stream since switching over from Hulu after being with them for years. The service itself has been great, but it feels like DIRECTV is falling back into the same old problem of becoming way too overpriced. I’ll see how long I stick with it but honestly YouTube TV is starting to look more and more appealing,” wrote one DirecTV customer.
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“For me, the timing of this increase is the nail in the coffin. I have the original Go Big and had paused my service 6 months ago just to see if I would miss it…I did a little, but I enjoyed saving that $700 more. The email is my reminder to cancel before it automatically resumes in 2 weeks,” wrote another.
“I’m definitely leaving. They took my free Max away about a year or so ago. These new prices aren’t worth it. New customers are starting to have better pricing,” wrote another customer.
DirecTV fights to attract consumers as cable loses popularity
The move from DirecTV comes during a time when it is aggressively building out its streaming business to beat competitors such as Spectrum and Comcast, which are also beginning to offer streaming packages.
Last year, DirecTV launched its MyFree DirecTV app, which offers customers free access to over 90 channels such as CourtTV, ABC News Live, and Bravo Vault.
In January, DirecTV also introduced its MySports streaming package, which offers access to over 40 sports and broadcast channels for $70 a month. The following month, it launched three new streaming bundles called Genre Packs, offering customers genre-specific channels for less than $50 a month.
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The U.S. streaming video market is growing rapidly. By 2029, it is expected to increase by 33%, reaching $112.7 billion, according to a recent report from PwC. By 2029, PwC predicts that traditional TV services will see its compound annual growth rate decrease by 5.4%, as only 28.8% of American households will have these services.
Currently, the average U.S. household now spends about $50 a month on streaming subscriptions as demand increases, which is good news for advertisers, a recent report from Adtaxi found.
“As of 2024, streaming TV had fully crossed into the mainstream,” said Adtaxi Director of Research Murry Woronoff in the report. “For advertisers, it’s no longer a complementary channel to broadcast and cable — it’s the foundation of any media plan built to reach today’s audiences.”
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