DirecTV Hikes Rates

DirecTV will raise monthly rates on programming packages an average of 4% effective March 4, and while the increases are in line with other video providers one Wall Street analyst said the satellite leader could be more vulnerable to "recession-related downgrades" than cable competitors. DirecTV's Select package, for example, will increase to $48.99 per month, up 6.5% from $45.99 previously. The Plus HD-DVR tier is being hiked to $75.99 per month, up 4.1% from $72.99. The Basic tier will be $12.99 per month, a 30% increase $9.99 previously, while the Family package will remain unchanged at $29.99 per month. According to DirecTV spokesman Robert Mercer, the new pricing reflects the increasing cost of programming as well as the "significant investments we've made to enhance our customers' viewing experience." Sanford Bernstein senior analyst Craig Moffett, in a research note Monday, said DirecTV's price hikes come on the heels of similar increases at Comcast, Time Warner Cable, Cablevision Systems, AT&T and Dish Network.