Why is DIRECTV streaming so expensive?

Why DIRECTV Streaming is so Costly?

DIRECTV Stream, also called DIRECTV, is an internet-based live TV and on-demand programming service that does not need a satellite dish or cable box. However, there are still weaknesses such as high monthly tariffs which some of them are more than $100 per month. This paper will discuss the factors that contribute to the higher streaming prices of DIRECTV compared to other live TV streaming options.

Content Costs One of the main causes for the fact that DIRECTV streaming runs higher is that DIRECTV has to purchase networks and channels for highly expensive fees to rebroadcast their programming. Broadcasters such as ESPN, TNT, Disney and others demand high carriage fees from DIRECTV and other TV providers to air the programming networks. These fees have been steadily increasing, particularly for the sports networks as in the case of ESPN. Programming costs have been on the rise and directly, DIRECTV transfers those costs to the consumer. As a result, streaming the channels over the Internet has some tech advantages over the satellites, but the content still carries a hefty price tag for the DIRECTV streaming.

Reduced Number of Customers for Sharing Content Expenses The other issue with streaming is that there are significantly fewer customers sharing the costs when compared to that of satellite TV. DIRECTV satellite TV has around 15 million subscribers in the US. Altogether those subscribers contribute to the payment of content which in turn helps DIRECTV to achieve economies of scale. On the other hand, DIRECTV Stream has less than 2 million customers sharing their bills. Thus, the per subscriber costs as expected are higher when it is calculated given less number of customers.

Incentivizing Satellite TV Analysts believe that the company intentionally set its streaming TV prices high to avoid disrupting its core satellite business that still has more than 15 million customers. While streaming is the future, satellite TV subscriptions are the cash cow today as their contracts are longer and ARPU is much higher. DIRECTV does not wish to speed up cord cutting by providing the satellite subscriber with a window to easily move to cheaper streaming packages. Thus, high DIRECTV Stream prices benefit the satellite TV segment.

Temporary Promotional Discounts DIRECTV Stream, for instance, mask their actual subscription fees through lower prices for the initial months. However, once the promotional period is over, the normal price is extremely high. This publicizing technique attracts potential customers who are willing to accept a cheaper initial rate. However, it is beneficial to understand that DIRECTV gets the full freight after some time when these offers have a possibility of expiring. The consumers who are wise should think about long term expenses when they are signing up.

Multiple Simultaneous Streams Charges Unlike some other of its competitors such as YouTube TV or Hulu Live TV, DIRECTV requires customers to pay more for multiple streams that run concurrently on different devices. For instance, if you wish to stream DIRECTV in 3 devices simultaneously, you are charged an additional $15 monthly. Other providers permit unlimited streams within your home network for the base subscription price. These additional concurrent stream charges add extra costs on the DIRECTV package especially for larger households intending to watch on several TVs or devices at the same time.

There were no accounts of consumers being offered low-cost basic packages. DIRECTV Stream does not have basic channel plans that come at low prices. Originally, its Entertainment package, which is considered to be its entry level tier, costs $70 per month and offers approximately 65 channels. Sling TV, Philo and YouTube TV have smaller affordable packages with the lowest price starting from $25 per month. DIRECTV only offers larger mainstream packages that are meant for the higher spending classes. As of now, there are no specific low cost DIRECTV plan offerings designed for specific niche audience including the budgeted ones.

The following is a list of the potential challenges that may discourage investing in a rural Grocer: As a result, DIRECTV Stream is often the only available streaming service for users in rural areas with limited or no good internet connections. While there are many services such as YouTube TV, Hulu Live, Sling TV among others, some of the rural user at times have no other option than to use DIRECTV for live streaming. This makes it possible for DIRECTV to charge high rates because the rural clients have no option other than the most popular networks. Nonetheless, new low orbit satellite internet options such as Starlink that is enabling more rural users may end up placing pressure on the DIRECTV pricing as well.

Fewer Features than Competitors While some of the DIRECTV Stream packages may cost the same or even more than its competitors on a monthly subscription, it outright omits some features you get with the competitors. For instance, DIRECTV restrict the DVR space for the recorded programs whereas YouTube TV provides unlimited space for the recordings. Also, there are fewer devices allowed to stream at the same time using DIRECTV Stream in contrast to providers such as YouTube TV which brings no restrictions to home networks. When consumers pay PPS, they are reasonably justified to receive the best in class features and incentives which are absent from DIRECTV.

No Option Gift Cards and Discounts Hence, contrary to other streaming TV providers, DIRECTV does not use gift cards as products that can be purchased at stores such as Amazon and Walmart. Gift cards usually come with small savings which reduce the expenses borne by the patient. And streaming gifts cards are a perfect solution for friends and relatives who want to purchase the gift of the live streaming TV. The lack of DIRECTV gift cards therefore places them in a disadvantageous position in terms of cost and convenience when compared to other platforms like YouTube TV or Hulu Live TV gift options.

Monthly Equipment Rental Fees Unlike most competitors now using apps, DIRECTV Stream often depends on their own streaming box which they offer for $5 monthly lease. Although this fee may be omitted for a certain period of time provided to the new consumers, it is another permanent addition to the price increase after the end of any promotion for new subscribers. The likes of YouTube TV enables its users to eliminate all the device rental costs, as their applications can be run from the Smart TV.

However, the above disadvantages and missing low-cost plan option again lead to high premium prices that make it difficult for DIRECTV Stream to reach a large audience of mainstream internet TV viewers. However, the intensifying streaming competition together with new technological advancement may at some time compel DIRECTV into offering more flexible packages and cheaper price since cord cutting is likely to move more viewers away from satellite TV in the coming years.