DirecTV (DTV) to Boost Prices in FY13; Cites 'Unreasonable Demands' by Content Providers
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In an effort to keep pace with inflation, DirecTV (Nasdaq: DTV) may be raising prices in the near future.
According to the WSJ this afternoon, DirecTV is planning to boost prices on programming packages by about 4.5 percent starting February 7,2013.
DirecTV noted that the price increase is being implemented offset higher costs associated with programming, which is says will rise 8 percent next year. The company noted that all content providers are raising prices, stating, "On occasion, some negotiations of new and existing channel contracts have become public...so you can see we are doing all we can to make sure you do not suffer unfair price increases as a result of unreasonable demands in these disputes. By holding firm, we’ve held our annual price increases on average below those of cable competitors."
Shares of DirecTV are up 0.4 percent Thursday.
According to the WSJ this afternoon, DirecTV is planning to boost prices on programming packages by about 4.5 percent starting February 7,2013.
DirecTV noted that the price increase is being implemented offset higher costs associated with programming, which is says will rise 8 percent next year. The company noted that all content providers are raising prices, stating, "On occasion, some negotiations of new and existing channel contracts have become public...so you can see we are doing all we can to make sure you do not suffer unfair price increases as a result of unreasonable demands in these disputes. By holding firm, we’ve held our annual price increases on average below those of cable competitors."
Shares of DirecTV are up 0.4 percent Thursday.
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