Yesterday, DIRECTV STREAM notified customers that its previously announced price hike, effective October 6, 2024, was actually understated for certain plans. Ultimate package subscribers, who were initially told to expect a $9 monthly increase, were informed via email that the correct figure is a $10 hike.

The updated price adjustments impact all tiers of DIRECTV STREAM’s offerings, as follows:

• Entertainment: Increasing from $79.99 to $86.99 per month (+$7)
• Choice: Moving from $108.99 to $114.99 per month (+$6)
• Ultimate: Jumping from $119.99 to $129.99 per month (+$10)
• Premier: Rising from $164.99 to $169.99 per month (+$5)

This marks the second time this year that DIRECTV has implemented a price increase, following a similar hike in its satellite TV packages earlier in 2024.

A DIRECTV spokesperson provided a statement to Cord Cutters News, explaining, “DIRECTV strives to align the content customers receive with the price they pay for their service. We are working aggressively with programmers and content providers to get away from them continuing to saddle TV distributors with higher fees and bundles of multiple channels that customers may not want, and giving customers the channels they want at the price they are willing to pay for them.”

Background on Disney and DIRECTV’s Recent Agreement

The announcement of the price hike comes shortly after a two-week blackout of Disney-owned channels, including ESPN and ABC, which were removed from DIRECTV’s lineup during a contentious negotiation. On September 14, both companies reached a preliminary deal, restoring Disney’s suite of channels to DIRECTV customers.

Under the new agreement, DIRECTV now has the rights to offer multiple genre-specific options, including sports, entertainment, and kids & family channels. Additionally, the agreement allows DIRECTV to offer Disney+, Hulu, and ESPN+ bundled with certain DIRECTV packages, as well as distribute these streaming services on an a la carte basis.

DIRECTV customers faced frustration during the blackout period, missing key sports events such as college football, the U.S. Open, and the NFL’s Monday Night Football season opener.

INSIDER TAKE

The updated price hike announcement from DIRECTV STREAM might feel like salt in the wound for subscribers who just weathered the Disney blackout. This marks the second price increase this year, and the timing—immediately after restoring Disney channels—raises questions about whether the new rates are a direct outcome of the recent deal.

DIRECTV’s statement hints at a broader industry struggle between content providers and distributors over escalating costs. As streaming giants continue to demand higher fees for their content, distributors like DIRECTV are inevitably passing these costs onto their customers. This trend is becoming a harsh reality for consumers who are seeing regular, significant price hikes across streaming services, from Hulu + Live TV to Philo.

With DIRECTV STREAM already one of the pricier options on the market, this latest increase may push cost-sensitive customers to explore alternative streaming platforms, especially given the growing number of affordable options available. As these pricing battles continue, consumers may increasingly find themselves reevaluating their subscriptions, seeking out ‘skinny bundles’ or exploring options that allow them to curate their own channel lineup.

In the long run, the industry’s success will likely hinge on how well providers balance content quality with pricing that feels fair and transparent to subscribers—especially as the competition in the streaming wars intensifies.