News and Analysis
AT&T, which owns DIRECTV Now, must be worried about the live streaming service’s recent subscriber defections. The telco just launched a new promotion that enables new DIRECTV Now customers to get $20 off during each of the first three months of the subscription.
After the three months are over, the new customer would pay the regular $50 a month rate for the Plus plan, and the regular $70 a month for the Max package. However, you can cancel prior to the start of the fourth month so you would only pay $30 a month or $50 a month for the three month promotional period. (You can also cancel anytime prior to the end of the three months.)
DIRECTV Now, which amassed nearly two million subscribers thanks in part to a variety of promotional offers, lost a net of 267,000 subscribers in the 2018 fourth quarter after dropping the promotions. The live streamer also bumped the base price from $40 a month to $50 a month, which some cost-conscious consumers may have felt was too much. (Updated: AT&T revealed on April 24 that Directv Now lost a net of 83,000 subs in the first quarter.)
AT&T executives said they were eliminating the promo prices — and raising the regular price — because it was too difficult to generate a profit because of the escalating cost of acquiring programming. (AT&T also removed several channels from DIRECTV Now’s lineup, including the NFL Network, to reduce programming expenses.) But it would appear that the company is concerned that it could lose a much larger number of subscribers without some promotional offer.
To qualify for the $20 off offer, a new customer must enter the promo code, 20OFF3, when signing up for either the Plus or Max plans.
On its web site, DIRECTV Now says the ‘$20 off’ deal is available for a limited time, but it does not say when it will expire.
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— Phillip Swann