It's official. Once the preferred starting price point for many of the digital cable alternatives, the $35-all-you-can-stream bundles will, by the end of the month, vanish from the market.
That is because AT&T this week decided to raise its DirecTV Now prices, meaning all of its streaming TV packages, including the base $35 monthly subscription, will be $5 more per month for all customers as of July 26. Sony also announced it will be charging $5 more per month on all PlayStation Vue tiers, with the cheapest bundle now starting at $45 per month.
Google did something similar earlier this year, bumping up the cost of its YouTube TV streaming service from $35 to $40 per month for new customers.
So what gives with the seemingly industrywide markups?
Price increases come in bunches, said Brett Sappington, a pay TV expert for the research outfit Parks Associates. "The fact that they're all doing price hikes in a group helps them," he said.
Most of the companies initially launched with really low prices, and leaner content offerings by association, to attract the most attention. As the bundles have fattened, so too have the prices, Sappington said.
Currently, there as many as 6 million subscribers to online pay TV services in the U.S., according to Parks Associates. That number will shoot up to 9 million subscribers by the end of 2018.
And while Sling TV, with an announced 2.3 million subscribers, is the industry leader, others are successfully jockeying for position, each with a slightly different proposition.