In the month of October, AT&T CEO Randall Stephenson announced an extremely aggressive price point for their latest streaming service product, DirecTV Now. He announced that for just thirty-five dollars a month, a user could get a DirecTV Now package that includes more than a hundred channels.
Analysts said that the pricing would mean DirecTV Now would have to drive revenue from other areas of the business, targeted advertising campaigns and driving more and more users to wireless services being a few options. However, at the release event of DirecTV Now, the introductory offer of thirty-five dollars for hundred channels made waves. Yet that was a promo deal.
Recently, AT&T confirmed an expiry date for the introductory offer. Reports say that the introductory price will change on January 9, 2017. However, any user who buys the package before the expiry date will be included in the introductory price deal.
“Any current DirecTV Now customer, and those who sign up before the promotion ends, will stay at the special price of $35 for Go Big package. That’s a monthly savings of $25,” an AT&T spokesman said. “Customers who sign up for this offer, will continue to enjoy this special price for as long as they keep the package, subject only to future reasonable programming price increases applicable to all packages.”
From the statement, it is clear that the price for “Go Big” package will increase to the regular price of sixty dollars per month from Jan. 9, 2017. Other price points for the DirecTV Now service includes thirty-five dollars for 60+ channels, fifty dollars for 80+ channels, and seventy dollars for 120+ channels. Users can also have Cinemax and HBO as add-on package for five dollars per month for each.
DirecTV Now service is the much-awaited result of months of work by AT&T. They were preparing a streaming TV product for consumer use, which includes the process of securing carriage deals that is much important to get channels on the service. Carriage negotiations are a difficult process these days and it has been a key point in the regulatory defense of AT&T’s deal to buy Time Warner Inc.