Online TV Prices Are Acting Like Cable TV Prices: Heading Higher
- After promising lower bills, AT&T boosts DirecTV Now by $5
- Rising prices at competitors provide cover, analyst says
AT&T Inc. DirecTV NOW enabled devices are displayed inside a company store in Newport Beach, California.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
AT&T Inc.’s $5 price hike on DirecTV Now might spread good vibes about profit on Wall Street, but it’s gnawing at those who warned the phone giant’s $85 billion takeover of Time Warner Inc. would lead to higher prices for consumers.
The increase takes effect by month’s end. Just a few weeks ago, AT&T executives testified in a U.S. antitrust trial that pay-TV prices would fall as a result of the merger. The Justice Department, which said the deal would harm consumers and sued to block it, lost the case last month, allowing the merger to close.