DirecTV has stopped offering new satellite subscriptions to customers in select U.S. markets as part of a limited-time trial aimed at promoting its internet-based streaming service. The company confirmed that the move is intended to increase awareness and adoption of its satellite-free offering, which it says has become the preferred solution for new customers.

“This limited-time trial will increase awareness and adoption of our satellite-free streaming service, which has quickly become the preferred solution for new consumer customers,” DirecTV said in a statement reported by The Wrap.

The change affects roughly half of the U.S. market, according to user reports on Reddit, with major metropolitan areas such as New York City, Chicago, Dallas, Houston, San Francisco, Washington, D.C., Detroit, and Boston among those where satellite installs are no longer available for new customers. Existing satellite subscribers remain unaffected and will continue to receive service and installation support.

DirecTV has not issued a formal press release on the change but is quietly implementing the test in regions where broadband availability makes streaming more viable. The company’s aim is to gather data on market readiness as it evaluates a broader shift toward streaming-only services.

The trial aligns with broader industry trends, as providers seek to reduce operating costs tied to satellite infrastructure and focus on scalable, software-driven subscription models.

INSIDER TAKE

DirecTV’s trial is another clear signal that legacy subscription businesses are accelerating their transition to streaming-first models. For subscription executives, this reflects several strategic priorities:

Cost structure transformation: Satellite services involve significant ongoing capital and maintenance expenses. Streaming simplifies operations and enables providers to deliver updates and new features without physical interventions.

Market segmentation: DirecTV’s choice to test in broadband-rich regions underscores the importance of infrastructure readiness in supporting subscription model pivots. Subscription leaders should evaluate similar factors when planning service transitions.

Customer experience evolution: By emphasizing internet-based services, DirecTV is aligning with shifting consumer expectations for flexibility and ease of use.

What to watch for: How DirecTV measures success in this trial — whether by subscriber growth, churn reduction, or operational savings — will indicate the pace of its broader transition strategy. Executives should monitor whether competitors follow suit and how this reshapes the competitive landscape for premium video subscriptions.