AT&T to raise DirectTV Now prices, drop several channels

Bad news for DirecTV customers: prices are going up and choices are going down.

AT&T announced it is raising prices for its DirecTV Now service.

But what makes the change worse is that customers will also get fewer channels.

DirecTV Now used to have a base price of $40, but that will increase to $50.

The package will include HBO, which is owned by AT&T, but the service will also drop some popular channels not owned by the company -- HGTV, Discovery, Food Network and MTV.

The changes come after a U.S. appeals court upheld the company's Time Warner takeover.

The Justice Department fought it, arguing it would lead to higher prices.