Does AT&T bill for DirecTV?
The satellite television internet service provider that operates in the United States is DirecTV for many years has been associated with high prices as compared to its other competitors such as cable and streaming services. Considering these facts, it is possible to list several reasons which can explain why the prices offered by DirecTV look so high.
Technology is a key factor for the cost structure of DirecTV since it deals with satellite television delivery. The construction and deployment of fleets of satellites into the geosynchronous orbit is a very costly affair. These large infrastructure investments must be recovered from subscriber fees that DirecTV receives. Thirdly, satellite internet/TV has higher costs per customer to own items like dishes and receivers than cable. Thus the fixed costs of satellites are higher from the onset, and the marginal cost is lower.
It also spends a lot on the purchase of rights for airing sports content, particularly packages from premier leagues such as the NFL Sunday Ticket. These sports packages do not come cheap – a whopping billions of dollars are often required to be locked up for years. Most of the cost is simply ‘shifted’ to subscribers through higher bills or new charges added to the accounts. That is why there is concern about the high cost of these valued sports deals which add a lot to DirecTV’s pricing.
Another factor that fuels the notion that DirecTV prices are so high is the pricing model that it uses. DirecTV typically provides even more significant initial special ‘kick-off’ discounts for the first year and will then substantially raise the prices as soon as the special offers are over. This means that the increase in the monthly expenses looks quite shocking. Their contracts also allow mid-contract price increases as well, which are well-hidden in the fine print. This is why customers feel ‘locked in’ to paying more at some point with no option out of the contracts that last for 2 years.
Furthermore, the problems of comparison and final price anticipation are also present due to the complications regarding all the options that DirecTV offers for its packages. With teaser rates that are not easily compared to regular pricing, discounts or promos that are continuously changed, “VIP” packages with flexible prices that vary even daily, and service charges that include premium add-ons, it is very much impossible for a DirecTV customer to know the real cost of any service he decides to subscribe into in the long run. Such an experience of high bills all of a sudden creates resentment after some time.
Lastly, streaming TV bundles have been adding more channels and maintaining the costs significantly lower compared to satellite/cable providers. Though lacking some sports coverage or local channels, streaming services like Sling TV and YouTube TV started cheaper and customers know what they'll pay forever: Kindly complete the following three statements as the context to effectively summarize and conclude the content.
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