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AT&T increases skinny bundle prices

Photo: Robert Alexander/Getty Images

AT&T says it will begin charging consumers an additional $10 for its digital skinny bundle package of live TV channels. It will also streamline its DirecTV NOW service to offer two package options as opposed to five.

Why it matters: AT&T is most likely increasing the prices to drive profits. These bundles are typically much cheaper than the Pay-TV live packages consumers get through AT&T. Analysts predict the move could push subscribers to purchase competitor packages like YouTube TV or Hulu with Live TV.

Details: The new packages, which offer fewer channels, will be available for $50 and $70, respectively. Consumers won't be kicked out of their existing packages. (AT&T just raised its prices by $5 last summer.)

The big picture: AT&T is doing this potentially to push consumers to its new streaming service "AT&T Watch," which consumers get access to as part of bigger bundled wireless or broadband networks plans.

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