DirecTV raises prices for satellite and streaming TV due to Disney ban

DirecTV subscribers just lost ESPN, ABC and other Disney-owned channels due to a still-unresolved contract dispute — and now the pay-TV provider is telling customers it will raise its prices next month.

The higher prices for DirecTV’s satellite TV and streaming TV services will take effect on or after Oct. 6, 2024, the company said in notices it sent to its subscribers earlier this week. Customers will see the new prices in their next billing cycle, DirecTV said.

“We are adjusting the price of your television package to remain competitive in the market while delivering the best programming possible,” the company said in a customer notice. “TV networks continue to increase the fees they charge DirecTV for the right to distribute the content they produce, including movies, shows and sporting events. We remain committed to providing you with the best programming at a fair and reasonable price.”

Starting October 6, the price of DirecTV Stream Choice will increase by $6 to $114.99/month, and DirecTV Stream Ultimate will increase by $10 to $129.99/month. DirecTV’s satellite TV packages will also increase by $2 to $10 per month starting October 6, depending on the plan. In addition, regional sports fees for some satellite customers will increase by as much as $2 per month, depending on the zip code, but for some subscribers, nothing will change, according to DirecTV.

DirecTV’s pricing changes have likely been in the works for some time, but the announcement to customers comes at a particularly bad time. The company was unable to reach an agreement with Disney before the previous distribution contract expired on September 1, resulting in ESPN, ABC, SEC Network, Disney Channel, NatGeo, Freeform and the rest of the Disney networks being removed from DirecTV’s lineup.

DirecTV has offered its customers a one-time $20 credit to make up for the missing Disney networks. In another move to prevent subscription cancellations during the blackout, DirecTV is offering a $30 credit to customers who sign up for Dish Network’s Sling Orange package or Fubo’s streaming services. (The company noted that subscribers who previously claimed a $20 credit will be eligible for an additional $10 credit if they opt into the Sling and Fubo offering.)

DirecTV is majority owned by AT&T, with a minority stake held by TPG. Leichtman Research Group estimates that the service will have 11.3 million subscribers (including AT&T U-verse TV) by the end of 2023. That’s down from its peak of 25.5 million at the end of 2016.