Did DIRECTV Stop Requiring 2-Year Contracts to Subscribe?

By Phillip Swann
The TV Answer Man – Follow me on X.

TV Answer Man, I am confused. I keep seeing that DIRECTV says there are no contracts now so have they gotten rid of all the two-year agreements when they changed their pricing and lineups? – Gene, Pittsburgh. 

Gene, DIRECTV this month launched a new lineup for its TV packages which feature standard pricing for new satellite and streaming customers. In addition, there are no longer two separate streaming packages with different names – DIRECTV Stream and DIRECTV via Internet. Now all streaming plans are under one brand, DIRECTV, at DIRECTV.com.

After the announcement of the new offering, there was some talk in the media that DIRECTV had eliminated the two-year agreement which required a penalty of $20 a month for every month left in the contract if you cancelled early. The reality, however, is that DIRECTV only ended the two-year agreement for new subscribers who opted to use the company-supplied Gemini streaming device with a streaming plan. The two-year agreement for new satellite subscribers remains in place. 

Why DIRECTV Eliminated the Two-Year Contract For Gemini Users

DIRECTV would prefer that more streaming subscribers use the Gemini device over a user-owned product such as Roku because the company owns Gemini’s data while Roku owns the data in its devices. That helps DIRECTV in developing marketing and advertising programs that generate revenue in addition to subscriber fees. However, some subscribers likely decided to use their own devices instead of Gemini because they didn’t want to enroll in the two-year agreement. Now that barrier has been lifted which could accelerate Gemini use. By the way, streaming customers who get Gemini will also get the same monthly rate for two years. 

Why Didn’t DIRECTV End the Two-Year Contract For Satellite Subs?

We asked a DIRECTV spokesperson that very question today and here was her response

”Regarding new satellite customers, there is still a 2-year term commitment along with a two-year monthly price guarantee. This allows DIRECTV to spread the significant costs of installing and providing equipment over the term of the contract.”

Basically, it’s costly for DIRECTV to install a dish and provide a satellite receiver, certainly more costly than simply issuing a Gemini streaming device. The company wants to ensure that a customer will maintain service for a significant amount of time to justify those expenses. Thus, a two-year agreement is required.

Gene, hope that answers your question. Happy viewing and stay safe.

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Phillip Swann

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The TV Answer Man is veteran journalist Phillip Swann who has covered television for more than three decades. He will report on the latest news and answer your questions regarding new devices and services that are changing the way you watch TV. See the bio for Phillip Swann here.