AT&T reports significant video subscription loss

AT&T expects to end the third quarter of 2017 with almost 90,000 fewer pay-TV subscriptions, the company reported to the SEC. AT&T cited a number of reasons for the loss, including natural disasters and competition, but the fact is that the rate at which customers are cord-cutting is outpacing new subscriptions from the company’s recently acquired DirecTV.

The company reported 90,000 fewer total video subscriptions with 300,000 new DirecTV subscriptions, meaning the company lost almost 400,000 traditional video subscribers this quarter.

Cord-cutting, or cancelling traditional video service for over-the-top streaming services or no service at all, is a problem for video and cable companies across the industry. "We believe cord-cutting continues to gain steam as streaming builds momentum," said an analyst from UBS, which predicted that the entire pay-TV sector lost over 1 million customers this quarter.

Links:

‘The ravages of cord-cutting’: AT&T’s race against time to save its TV business (Washington Post, Oct. 13, 2017)

AT&T’s 3Q2017 report to the SEC (SEC, Oct. 11, 2017)

Pay-TV subscriber losses hit the 1M mark in Q3, analyst predicts (FierceCable, Oct. 13, 2017)