Streaming plan options are increasing day by day with more competitors entering into the market to take on Netflix and other large streaming services. There’s Hulu, Sling HBO Now, Disney Plus and many more. Competition in this space is fierce and customers have many options and only a certain few will make it into the living room.
With this in mind, AT&T has recently announced that it will be increasing prices of two of its newest streaming plans. The “Plus” plan has been said to increase about 30% from $50 per month to what is now expected to be $65 per month. To get a better understand of what you’re getting in the Plus package, it contains about 45 channels.
In addition, the other increase for AT&T’s streaming service is that the “Max” plan will see an increase of about 15% from $70 per month to $80 per month which include an additional 15 channels compared to the 45 channels of the “Plus” package. These new plans are said to take effect next month of November 19th.
These price hikes are not uncommon as streaming companies are focusing their attention on creating their own content compared to purchasing rights from studios and other media companies, which then the extra costs get passed to the end user. AT&T has now raised its prices about 50% in seven months on certain plans. You can also see this price hike with Netflix, as they slowly have increased the monthly price per month several times in the past several years.
What’s In Store For The Future?
An interesting point to take into consideration when AT&T and TimeWarner merged last year is that they claimed that the merger would bring down the prices, compared to reality the prices have only gone up. It seems like costumers are speaking with their wallets as the service’s subscribe count has lost about 500,000 users in the past year from 1.8 million users.
It’s unknown if AT&T will continue to increase prices to counter the losing subscriber numbers. But with Disney and Apple launching their own streaming services and with some sort of combination with Netflix or Hulu, consumers now have many options of where they want to spend their streaming dollars. Can AT&T control this fast decreasing subscriber number for streaming or will they just lose out to the competitors that focus more on customer’s needs.