Streaming TV Services Are Raising Their Prices

It’s no secret that the latest fad — if you can call it that — is to “cut the cord” and get rid of your cable package in favor of an Internet-based service like Netflix or Hulu.

Instead of paying upwards of a hundred dollars each month for dozens of channels you never tune in to, streaming services tend to offer more a la carte options and let you consume the content you choose. Content-wise it’s smarter and with a ten-dollar-a-month price tag for a service like Netflix, it’s a no-brainer, right?

Maybe not for long, however, as industry insiders say that price tags for streaming services are on the up and up.

In a piece by the Wall Street Journal, insiders say that while the small price increments put in place now might not turn off a huge consumer base, it could lead to a dangerous precedent.

The WSJ says services like AT&T Inc.’s DirecTV Now, Alphabet Inc.’s Youtube TV, and DISH Network‘s SlingTV have each increased their base packages by at least five dollars over the summer.

According to the CEO of AT&T, their pricing is still probably “too low” for the long haul.

“We moved the price up and, being a very price-sensitive market, we fully expected to see a considerable number of customers drop off,” AT&T chief executive Randall Stephenson told the WSJ. “We haven’t seen that. The consumers, it’s obvious that they’re finding value in the platform.”

Stephenson went on to reveal that DirecTV Now has been unprofitable for AT&T. So much, in fact, that the company has begun steering their more frugal customers to WatchTV, their most basic offering.

When it comes to SlingTV, Dish executive Warren Schlichting says the increased price is a direct result of programming changes.

“Our team works hard to negotiate fair programming deals, with the goal of keeping your price as low as possible,” Schlichting said in a blog post. “Programming fees, however, only go one direction, and that’s up!”

The Journal went on to say that a SlingTV spokeswoman confirmed with them that Sling would be adding more channels from Discovery Inc. by years-end without another raise in price.

While these channel-based streaming services are increasing their prices, it appears the services with roots in original programming like Netflix, Hulu, and Amazon Prime Video are holding steady for the time being.

Are you a cord cutter? What’s your go-to streaming service? Let us know in the comments below.