AT&T Inc. told a federal judge this year that its landmark merger with Time Warner Inc. probably would result in lower prices for its DirecTV customers. But the telecom giant is now saying that it will raise the price of DirecTV’s online streaming service, DirecTV Now, by $5 a month for new and existing customers.
The decision affects all service tiers of the product. AT&T said its decision was driven by industry trends.
The price hike takes effect July 26 for new customers and possibly later for existing customers based on their billing dates. If applied across DirecTV Now’s entire user base of nearly 1.5 million customers, the price increase could mean more than $87.5 million a year in new revenue for AT&T.