Did AT&T Just Scuttle DirecTV With Another Price Hike?
If you're scratching your head trying to figure out why AT&T (NYSE: T) just made its struggling DirecTV service even less marketable by raising its price, you're not alone. While inflation is a reality that companies and consumers alike must face, let's face it -- the move doesn't help the cause. The cost of the satellite-delivered cable TV service compared to its alternatives is a key reason DirecTV customers have been cutting the (proverbial) cord en masse for a few years now.
And that's why this price increase is apt to accelerate the demise of DirecTV as we know it. The decision will improve net margins as a percentage of revenue but will almost certainly whittle down this business unit's total bottom line.
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Source Fool.com
