AT&T is raising the prices of its TV plans, including both DirecTV and U-Verse packages. The company is citing network fees and FCC fees as the reason for the price hikes.
For the first set of increases, AT&T says “Due to increased programming costs, we’re adjusting the price of our video packages. Periodically, TV network owners increase the fees they charge AT&T for the right to broadcast their movies, shows, and sporting events.” The increases for each DirecTV and U-Verse package are listed below:
- Basic Choice Basic $1
- Preferred Choice $3
- Select Entertainment $5
- Mas Ultra $6
- Choice $7
- Xtra $8
- Ultimate, Premier $9
- U-Family $5
- U200 $8
- U300 $9
Additionally, DirecTV customers will begin seeing a Federal Cost Recovery Fee of $0.19 per month. AT&T explains that the fee used to be charged annually but will now be a monthly charge.
“It covers regulatory fee expenses that DIRECTV pays to the Federal Communications Commission. Plus, the fee may include outstanding regulatory costs incurred in prior years that are not yet fully recovered. The fee isn’t a tax or surcharge that the government requires DIRECTV to collect if you have a DIRECTV account,” AT&T says in a notice to customers.
These increases went into effect on January 17, 2021, and customers can expect to see them on their first bill after that date.
While increases in monthly prices for streaming services are often heavily shared in the news, small increases in cable packages are much more common but much less talked about. When considering the costs of cord cutting compared to cable, be sure to take these frequent fee increases into account.