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Issue 48: October 21, 2019

AT&T announced that it's raising prices for its live TV customers, yet again. We'll dive more into what's happening with AT&T TV Now, and what consequences that may have for the streaming service and the wider OTA market.Read on to find out more in this week's Stream Report.

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Cord-Cutting Tip of the Week:

Pay Attention to Price Increases

This week, AT&T announced that it will be increasing prices for its two introductory plans, "MAX" and "PLUS", but $10 each. This comes after the company already increased prices for its AT&T TV Now (formerly DirecTV Now) service earlier this year. 

1. What happened?

AT&T sent an email to current subscribers informing them that it intends to raise prices in two areas. First, the "MAX" and "PLUS" packages will both increase by $10 per month. That brings the 45+ channel "PLUS" package to $60 per month, and the 65+ channel "MAX" package to $80 per month.

Next, grandfathered plans, e.g., those that carried over from DirecTV Now, will also receive $10 per month price increases. Note that the grandfathered plans already increased in price back in March of this year. This means some customers have seen a $20 per month or larger price increase on their subscription packages in under a year.

2. What Does This Mean for AT&T TV Now?

There are significant implications for AT&T TV Now. As some are suggesting, AT&T could be shooting itself in the foot. Although the company claims these price increases are needed to pay for the service it's providing, it's important to note that all of its competitors are now dramatically cheaper. Even fuboTV, which starts at $54.99 per month, provides a larger number of channels (around 100) for less than what AT&T TV Now is providing for the same price.

AT&T has made its package selling point for TV Now the inclusion of HBO for "PLUS", and HBO and Showtime for "MAX". Both add significantly to the cost of the service, but there are likely other factors at play. It could be that AT&T is intentionally killing its AT&T TV Now service, and soaking its existing customers before it officially shuts down the service. It's well known that the company is bleeding customers, so it may be trying to reduce recoup its costs.

3. Implications for the Entire OTA Market

AT&T's price increases don't exist in a bubble. The company's actions could create a ripple effect across the wider OTA market in two ways.

First, other services may see this as an opportunity to target existing AT&T TV Now subscribers. As noted earlier, every other service on the market is priced well under what AT&T TV Now is offering. And while packages vary from service to service, AT&T TV Now's package options aren't entirely unique. Other services, including YouTube TV, Hulu with Live TV, and PlayStation Vue, all offer similar packages for a lower price.

Secondly, and perhaps more troubling, other services may use AT&T's price changes as an excuse to raise prices on their own subscribers, as well. That said, it's unlikely other services are going to raise prices as much or as quickly as AT&T continues to do. At least, not if they intend to steal away AT&T's customers.

This Week's Streaming Guide

1. Netflix Explores the Post-Apocalypse in a New Way with "Daybreak"

Netflix offers a new take on the post-apocalypse genre with its new show, Daybreak. Stream the series starting this Wednesday. -

Netflix

2. Did You Miss It? HBO's 'Watchmen' Premieres with Fanfare

Did you miss the HBO premiere of

Watchmen

? The show premiered with an unexpected amount of praise. Catch it now on HBO. -

Flixed

News and Industry Developments

1. Cord-Cutters: Rescan your OTA Antenna Channels

Some OTA antenna channels have changed. If you're using a digital OTA antenna, you may need to rescan your channels. -

Cord Cutters News

2. Don't Believe All of Those Disney+ Movies Are Real? Here's a 3-Hour Sizzle Reel Preview

In the wake of its massive Tweet storm listing every title coming to Disney+, the company dropped a 3.5-hour sizzle reel to prove to skeptics that each title listed is real. -

The Verge