Why is DIRECTV losing customers?

DIRECTV is Losing Customers as Costs Rise and Streaming Choices Expand

DIRECTV is one of the major satellite TV service providers in the United States, which, however, has been experiencing some problems with customer retention in the recent years. The company is also suffering from customer erosion, they have lost more than a million subscribers over the last few quarters only. There are several factors that have made it difficult for DIRECTV to retain its users.

Evaluating the impact of price increases on customer churn.

Undoubtedly, the relentless and progressive increase in DIRECTV’s prices over the last several years can be considered as one of the primary reasons for the steady decline of its subscribers. For instance, as DIRECTV has hiked prices for new signees as well as the existing customers, many have been forced to dump the service in favor of cheaper offerings. DIRECTV has implemented new charges for equipment, monthly packages, extra receiver charges, and so on. These constant price jumps complicate the consumers’ ability to maintain a budget. It is important to note that the fees that are being imposed on regional sports alone have gone up at alarming rates each year. Although DIRECTV says such consistent rate adjustments are essential to license content, especially regional sports networks, many opine that the prices are too steep as compared to other forms of entertainment. These successive rate hikes made a significant percentage of the subscribers to drop the service and there was a class action lawsuit in 2019 that accused DIRECTV of charging exorbitant sports fees.

Limited Streaming Capabilities

Another challenge facing DIRECTV is a poor emphasis on streaming services in a time when the audience demands on-demand and live streaming services. Currently, DIRECTV enables users to stream content, on such devices as mobiles and computers; however, the functions are limited. For instance, the streaming option does not allow the customers to watch all the channel they have subscribed to in their package. DIRECTV also lacks some of the modern features like cloud-based digital video recording service and high definition 4K streaming. As companies such as Netflix, Hulu, Disney +, and others persist in creating new and innovative services for viewers, and as consumers run to these services, this poses