Service prices are climbing to "reflect the cost of delivering content to our customers," AT&T said in a statement to Engadget. It is not clear whether this reflects higher channel transport prices, AT & T's infrastructure costs or a combination of both.
A price increase seemed likely regardless of these costs. The carrier is more focused on making AT&T TV Now profitable than advertising its subscribers, and it has lost subscribers in recent months ̵[ads1]1; 168,000 just in the second quarter of this year. An increase in interest rates theoretically compensates for that loss. As you might assume, this also risks alienating subscribers who are throwing themselves at the new prices and don't care about AT & T's special channel offerings. Rivals are raising prices too, but the gap may be large enough now that viewers may be tempted to switch.