Skinny Bundles Still Aren't Quite Working
DirecTV Now is raising prices. AT&T's (NYSE: T) "skinny bundle"-like TV streaming service is ditching its four-tiered pricing structure in favor of a two-tiered model, and its new lowest price will be $50 per month (previously, $40 per month was the lowest price available). It's the latest sign of financial issues for DirecTV Now, and it's far from an exceptional development in a skinny-bundle space that has found profits very hard to come by.
The price hike isn't the first sign of DirecTV Now's struggles. After posting an impressive first two years on the market, DirecTV Now scaled back its aggressive marketing strategies and saw its subscriber numbers drop by a staggering 14% in the fourth quarter of 2018. That's unusual for a streaming service -- for on-demand services like Netflix and Hulu, slower growth is enough to upset investors. Losing subscribers is something cable is supposed to do, not streaming services. Yet here we are.
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Source Fool.com
