Speculation about the future of DIRECTV NOW has been going on since it was first launched. Now that we have full details, analysts are saying we should expect a price increase or channel reduction shortly.
According to analysts with Fox Business Network, DIRECTV NOW’s $35 a month 60-channel package costs about $30 a month in retransmission fees. Add in credit card processing fees, cost of running services, and advertising it is likely that AT&T is not making money from their $35 a month 60-channel package. The math gets even more shaky with the $35 a month 100-channel package. Although not stated in the report at Fox Business it is likely that AT&T is losing money on the $35 a month 100-channel package.
This has led many to believe that AT&T is likely to take one of two courses: raise costs or follow in the path of PlayStation Vue and drop channels. AT&T has helped feed these rumors of a price increase. During the announcement event it clearly stated that DIRECTV NOW will have price increases as features or channels are added.
We also know that the $35 a month 100-channel package is only for a very limited time. Although if you get in early it says you will be able to keep the package as long as your payment does not lapse.
It is unlikely we will get a warning if DIRECTV NOW ends the $35 a month 100-channel package ending. If you want to take advantage of it we recommend not waiting.
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