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AT&T Gets Stingy With DirecTV Promotions for Existing Customers; $100+ for TV-Only Service

Phillip Dampier January 27, 2016 AT&T, Competition, Consumer News, DirecTV, Public Policy & Gov't 4 Comments

directvDirecTV under AT&T’s ownership is turning out to be no bargain for customers finding it increasingly tough getting a promotional rate package with the satellite provider.

Fred Johnson has been a DirecTV customer in rural Iowa for almost six years and has had to call DirecTV every time his on-contract promotion nears an end. Off-contract customers generally do not receive the best promotions and DirecTV’s regular prices can make the average cable company blush.

“It is not unusual for DirecTV customers to get quoted rates of $80 a month for satellite television and then receive a bill for over $100 once the surcharges, rental fees, taxes, and other hidden fees are added to your bill,” Johnson tells Stop the Cap! “There are months when the bill can go up even higher with no explanation, and even the customer service department cannot explain all the mysterious charges.”

At the end of the usual two-year contract, it has become customary for many long time DirecTV customers to call and threaten to cancel if they cannot get a renewed promotional rate, and for years DirecTV had been happy to oblige.

In 2015, AT&T bought the satellite provider and is in the process of integrating it as part of the AT&T family of services, next to U-verse, AT&T Mobility, and traditional landline service. That is the year the discounts seemed to evaporate for customers like Johnson and Evelyn Wiedmer, who subscribes to DirecTV for the family’s recreational vehicle.

Recreational vehicle owners are among the most loyal to satellite television.

Recreational vehicle owners are among the most loyal to satellite television.

“We were just told our bill was going to increase $45 a month starting in February and there is little we can do about it,” Wiedmer tells us. “The call center lady mentioned that the new owner of DirecTV is going in a different direction with promotions and we no longer qualify for any specials, unless we also want to get an AT&T cell phone.”

Wiedmer and her husband are retired and travel the country in their RV and do not have room in the budget to pay AT&T an extra $540 a year for the same package of channels they used to get for about $65 a month.

“They apparently do not want us to be customers anymore because DISH Networks will sell us a comparable package for about $60 a month, which is much less than the $105 DirecTV is charging us starting next month,” Wiedmer writes. “It looks like DirecTV won’t be competing with AT&T U-verse and the cable company anymore at their prices.”

Critics charge that is exactly the point. Adam Levine-Weinberg called the AT&T-DirecTV merger “one more step towards oligopoly,” warning approval of the merger would remove a serious competitor for tens of millions of customers also served by AT&T U-verse.

“That means there [were] tens of millions of people who [had] a choice between AT&T and DirecTV (as well as the local cable company and satellite TV rival DISH Networks,” said Levine-Weinberg. “The merger [reduced] many consumers’ pay-TV options from four to three, giving the remaining companies more pricing power.”

AT&T is flexing that pricing power by pulling back on promotions and discounts. In addition to curtailing retention plans and promotions for existing customers, AT&T also announced rate increases for DirecTV that take effect tomorrow:

The monthly pre-tax price of DirecTV’s “Select” and “Entertainment” programming tiers will go up by $2, to $51.99 and $61.99, respectively. The “Choice” and “Xtra” bundles will increase $4 to $74.99 and $81.99, respectively; the “Ultimate” pack will go up $5 a month to $91.99; and the “Premier” bundle will grow by $8 to $144.99. That is well over $150 a month after taxes and fees are added, just to watch television. AT&T is also applying a 50 cent increase to a fee DirecTV charges for… selling television service. The so-called “TV Fee” will now cost $7.00 a month.

(Courtesy: zidanetribal17)

(Courtesy: zidanetribal17)

“You used to switch to satellite to save money, but now cable companies offer returning customers lower prices than what DirecTV will offer,” notes Johnson. “It’s almost like they want to drive customers away. It worked. Our neighbors are now collecting money to convince Mediacom to extend their cable down our rural street and after these price increases we finally have enough willing to contribute to switch to cable television and remove the satellite dishes from our rooftops.”

Wiedmer has also canceled her DirecTV service this week, switching to DISH Networks.

“Would you sign another two-year contract agreeing to pay $540 more a year for two years with nothing in return for the extra money?” Wiedmer asks. “AT&T and DirecTV can take a hike.”

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Russell Ward
Russell Ward
3 years ago

Hello, I read this article and I just wanted to report as a current DirecTV customer that I was already paying the $74.99 for the Choice package prior to the company increase on January 22. I was notified of a $4 rate increase 3 days before my January payment that would start in February. The humorous thing not reported by AT&T is that the company increased All package by $9-$10 for residential. So all customers in contract receiving a discount now will be paying $10 more than someone whose contract ended prior to January 22, for the same service. I… Read more »

tom
tom
3 years ago
Reply to  Russell Ward

Directv definitely no longer cares about retention of long term customers…try to wear you out on the phone…..good business for Dish

Arlene Hughes
Arlene Hughes
3 years ago

the plans are the amts for new signed up customers, the loyal customers get nothing and they pay for all the perks for the new customers. i for one is tired of it. I will be moving my loyalty to someone else. I tried all of it, contacting all. Dont contact me with your bull____.

Elisabeth Newman
Elisabeth Newman
3 years ago

I , too would like to thank you for your article. I have been a directv customer for five(WHY?) long years. Tom is right, those customer service reps must be trained in the fine art of wearing you out with a small accent on lying to the customer. It only took me almost four years to hear about the family package after struggling with paying my bill and downgrading my package numerous times because no. One. Not one person. Could be bothered to let me know they had this $29.99 pkg! A friend who used to sub contract for directv… Read more »

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