Says new pricing brings video offerings in line with peers

According to numerous reports, AT&T is increasing the pricing of its DirecTV Now streaming video service by $5 per month across the board for new customers beginning July 26.

The new pricing scheme comes less than one month after AT&T received regulatory approval for its $108.7 billion purchase of Time Warner.

AT&T got the go-ahead from U.S. District Court Judge Richard Leon for the Time Warner deal on June 12.

Rate hikes were a big part of the government’s argument against the merger, a fear that AT&T and Time Warner said was unwarranted at the time. And though the rate hike for DirecTV Now isn’t technically a slap in the face to government — it is keeping the rates for its flagship satellite TV service DirecTV constant — it is a sign that the low, low prices offered by OTT services may not be sustainable.

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According to several reports, AT&T is raising the price of every tier of its DirecTV Now service by $5 per month, from its introductory 60-channel “Live a Little” package (from $35 to $40 per month) to its 120-channel “Gotta Have It” tier (from $70 to $75 per month)

AT&T officials did not respond to a request for comment but in several other reports issued a statement saying the new pricing scheme brings the DirecTV Now service in line with other similar offerings.

"To continue delivering the best possible streaming experience for both new and existing customers, we're bringing the cost of this service in line with the market — which starts at a $40 price point," AT&T said in a statement to the Washington Post.

The move follows a $5 monthly price hike by No. 1 OTT service Sling TV for its Sling Orange TV package.