DirecTV tells customers it will raise its prices next month due to the blackout of ESPN, ABC and other Disney channels

DirecTV subscribers just lost ESPN, ABC and other Disney-owned channels due to a still-unresolved contract dispute — and now the pay-TV provider is telling customers it will raise prices next month.

The rate hike for DirecTV’s satellite and streaming TV services will take effect Oct. 6, 2024, the company said in notices it began sending to subscribers earlier this week. Customers will see the new rates in their next billing cycle, DirecTV said.

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“We are adjusting the price of your TV package to remain competitive in the marketplace while continuing to offer the best programming possible,” the company said in the customer notice. “TV networks continue to increase the fees they charge DirecTV for the right to distribute the content they produce, including movies, shows and sporting events. We remain committed to providing you with the best programming at a fair and reasonable price.”

Starting Oct. 6, DirecTV Stream Choice will increase by $6 to $114.99/month, and DirecTV Stream Ultimate will increase by $10 to $129.99/month. DirecTV’s satellite TV packages will also see price increases of between $2 and $10 per month, depending on the tier, also starting Oct. 6. Additionally, regional sports fees for some satellite customers will increase by up to $2 per month depending on the ZIP code, but some subscribers will see no change, according to DirecTV.

DirecTV’s pricing changes have likely been in the works for some time, but the disclosure to customers comes at a particularly inopportune time. The company failed to reach an agreement with Disney before their previous carriage deal expired on September 1, leading to ESPN, ABC, SEC Network, Disney Channel, NatGeo, Freeform and the rest of Disney’s networks being removed from DirecTV’s lineup.

DirecTV offered a one-time $20 credit to its customers to make up for the absence of Disney channels. In an additional measure to try to stem subscription cancellations during the outage, DirecTV is offering a $30 credit to customers who subscribe to either Dish Network’s Sling Orange plan or Fubo’s streaming services. (The company noted that subscribers who previously claimed a $20 credit will be eligible for an additional $10 credit if they opt for the Sling and Fubo offering.)

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DirecTV is majority-owned by AT&T, with a minority stake held by TPG. The service had 11.3 million subscribers (including AT&T U-verse TV) by the end of 2023, according to estimates by Leichtman Research Group. That’s down from a peak of 25.5 million in late 2016.

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