AT&T Sees Record Loss in Cable TV Subscribers Many analysts predicted that the second quarter would be the worst quarter for cord cutting in history, and AT&T's earnings certainly didn't disappoint. According to AT&T's earnings report, the company posted record losses in TV subscribers, losing 156,000 DirecTV satellite TV customers and 195,000 IPTV (formerly known as U-Verse) customers for a net loss of 351,000 “traditional” video subscribers. And while the company did manage to add 152,000 DirecTV Now streaming video customers, the additions weren't enough to counter the overall losses.

AT&T executives were quick to blame the losses on “seasonality and elevated competition,” which is code for the fact that AT&T is losing customers to cord cutting and faster cable broadband bundles during what's already a traditionally slow quarter for cable subscribers. As with so many telcos, AT&T has done an inconsistent job upgrading its broadband network to faster next-generation speeds, resulting in a lot of customers fleeing to cable, where they're quickly upsold a discounted TV bundle (often whether they want it or not). But AT&T is also facing a surge in streaming video alternatives that are attractive to customers who feel they're paying too much money for traditional television. AT&T of course believes that acquiring Time Warner for $89 billion (a deal which it stated should close by the end of the year) will somehow reverse these fortunes, though that's no guarantee. Owning Time Warner will help improve the company's costs in terms of content licensing, but it won't magically upgrade the company's lagging broadband network. Things fared slightly better for AT&T in wireless, where the company lost 89,000 postpaid wireless phone subscribers, though this was an improvement from the 180,000 postpaid subscribers the company lost one year earlier. Things fared slightly better for AT&T in wireless, where the company lost 89,000 postpaid wireless phone subscribers, though this was an improvement from the 180,000 postpaid subscribers the company lost one year earlier.







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Most recommended from 45 comments



TIGERON

join:2008-03-11

Boston, MA Motorola MG7550

28 recommendations TIGERON Member Implosion imminent If I were an investor I would be seriously very worried about this pending acquisition AT&T is going to do in merging with Time Warner. Most people don't realize that T bought Direct TV just a few years ago and cost the company $63 BILLION. This acquisition is going to cost AT&T $86 BILLION.



You know what I see? Carly Fiorina who once held the chair at Hewlett-Packard when she forced the buy of EDS systems and then only a few years later the acquisition of Compaq computers which nearly caused HP to implode.



Many areas still served by AT&T are on last mile old copper-based DSL incapable of next generation speeds and cannot handle streaming TV platforms in which the company has refused to upgrade let alone maintain. What is AT&T doing about unserved areas? Deploying cheap point-to-point inferior wireless calling it "5G" that is unable to deliver anything even close to 10 megs. Pathetic.



Randall Stephenson to me is a corrupt sonofabitch and a snake oil salesman. He's been at the helm of the company way too long. He could care less as his golden parachute is all set.



I see AT&T collapsing under the weight of this shit.

Chris 313

Because It's Geekier

Premium Member

join:2004-07-18

Houma, LA ·Comcast XFINITY

26 recommendations Chris 313 Premium Member Squandered chance With the money that was wasted on the Direct TV deal and the supposed TW buy, AT&T with the political clout they have could've wired their entire footprint with fiber. They would practically have a license to print money for the next hundred years. There would be no service complaints, they would offer top of the line phone/wireless, net and Tv, all on one wire and it would actually be worth the prices they charge for today's crappy connections that 99% of people are stuck with.

dslwanter

Not changing my username of 17 years.

Premium Member

join:2002-12-16

Mineral Ridge, OH Ubiquiti UniFi AP-LR

Ubiquiti EdgeRouter X SFP

ARRIS CM3200

1 edit 20 recommendations dslwanter Premium Member No wonder You can't add TV subscribers when you don't offer a network that can sustain any real advancement. 6mbps DSL isn't going to allow a household to switching to DirecTV now and maintain their current TV watching habits. You abandon your IPTV initiative in favor of a decades old satellite technology, you don't invest in any real network upgrades to support DirecTV Now as a replacement for CATV or Satellite (more suitable for mobile since after all, you don't hit that soft cap on AT&T's network with DirecTV Now). You let incumbent cable monopolies dominate in your respective territories with data caps & surcharges that prevent users from switching to next gen IPTV services because they'll hit their data cap.



AT&T, you're a big reason this country is lagging behind world statistics in broadband advancement. I'm with an above poster, they're going to collapse under their own shit. The wireless sector will flatline eventually, which has been the primary profit maker for years. itguy

join:2017-05-04 17 recommendations itguy Member What They spent billions on a dying market but won't allow fiber or even VDSL to my house when the infrastructure is already there. 🤔

maartena

Elmo

Premium Member

join:2002-05-10

Orange, CA 12 recommendations maartena Premium Member Not just AT&T.... Before anyone thinks that those customers are running away from AT&T/DirecTV, think again... they are not running away from a company, they are running away from subscription television in general. Although SlingTV, DirecTV Now and other OTT companies are picking up some of the business as people still want access to a small number of "channels", the reality is that as a whole.... the classic "channels in a grid guide" providers are going to lose customers at unprecedented rates in the coming years.



In 2015, providers lost 1.1 million customers in total. In 2016, this number was 1.4 million. Right now, the 2nd quarter of 2017 ALONE is going to set a new record and surpassing a million customers lost in just one quarter.... Video subscription service that consists of old style "channels" is losing customers faster than a bathtub can drain.....



People want "on demand". CBS is the first mainstream network (after premiums such as HBO, Showtime, Starz) to make the switch to streaming, and will actually only broadcast the new Star Trek series on it, not on television. (besides the first 2 episodes to gain viewers). Scripps is thinking of building a streaming package with HGTV/FoodNetwork/Discovery in it, and even Viacom is hinting it may be interested in creating a streaming sub.



Cable TV is dying. "Channels in a grid guide" with a remote that has a plus and minus sign for the channels is done. The next remotes will be roku-like, with just a few buttons, voice activation, and be fully on demand.



Saying "Roku, please start the next episode of Game of Thrones" is not that far of, instead of fiddling with your remote to tune into a HBO channel or pulling it up from recorded shows.



I estimate that....



- by 2020, the first channels have pulled off of cable TV and gone exclusively streaming/on-demand.

- by 2025, there will be around 20 to 30 streaming packages, and "a-la-carte" will be picking between those, not channels.

- by 2030, there will be around 30-ish channels left from the more than 150 we have now, primarily focused on news, sports and live events, ALL of which will also be available as an internet based live stream.



I also think that by 2030, most Americans (including in the rural areas) will have access to "streaming capable" internet speeds, not just aging DSL lines or LTE. This may still be delivered over wireless, or using low-orbit satellite (500km as opposed to the 30,000km they are now, reducing the latency to almost as good as wired connections), but only a few people that really live in very isolated, tree covered areas might not have access......



There will be people that will hold on to their "channels in a grid guide" with their cold dead hands, but the reality is that the world is changing around them. Then again, there are still stations broadcasting over AM radio, and they still have listeners, too. And there are still people with VCR's and a buckload of tapes connected to a old style tube TV. But the world is changing nonetheless, and with most sports now available over streaming, including local teams..... the cable empire is starting to crumble. T4K

join:2002-03-13

Fort Lauderdale, FL 12 recommendations T4K Member So much for that future... They should have stayed away from Direct Tv

Anoncea6c

@2600:1005.x 7 recommendations Anoncea6c Anon Business plan? It used to be Companies planned how to give customers what the customer wanted. Now they plan how to please advertisers and shareholders. Maybe, the customers got fed up and are taking their toys (money) elsewhere? kinda pissed

join:2012-06-06

Newsoms, VA 7 recommendations kinda pissed Member Not a problem ATT will just increase prices in order to not lose profit firedrakes

join:2009-01-29

Arcadia, FL 4 recommendations firedrakes Member their pricing is wrong when you factor everything in reality of their sales price and such its not really cheap at all Nucleartx

join:2016-09-08

Belton, TX 4 recommendations Nucleartx Member Directv AT&T has already said that satellites are too expensive to put up and maintain. They will be moving to streaming only by 2020. I don't see that happening with the current infrastructure. Tch81

join:2015-08-10 3 recommendations Tch81 Member No surprises Can't believe CEOs making more in a year than me in several lifetimes didn't see this coming.

battleop

join:2005-09-28

00000 3 recommendations battleop Member Executive blaming competition... "which is code for the fact that AT&T is losing customers to cord cutting"



Wouldn't this fall under the "competition" part of what they are blaming? That statement didn't sound like code to me. It's kind of unusual for them to admit something like that. They usually come up with some spin on how it's a positive loss. SkiBumJ799

join:2007-02-02

Dallas, TX 3 recommendations SkiBumJ799 Member Why the hysteria? I doubt a company with 1) $3.9 billion in quarterly net income; 2) $3.7 billion in quarterly free cash flow; and $53 billion in current assets vs $132 billion in long term debt is in any danger of filing bankruptcy anytime soon.

Anond2881

@2600:1005.x 2 recommendations Anond2881 Anon Why the Hysteria? I'm assuming the "Hysteria" is about what appears to be a significant downward trend in market share and possible year over year subscribers. I think that translates to either earnings flatline, no increase in dividends and increased risk of downward trend in dividends amounts. The Hysteria may also be long term investors looking for a growth stock rather than a Sears/Kmart history stock. Or it could be general Hysteria. I'm not a market whiz though.

alchav

join:2002-05-17

Saint George, UT 2 recommendations alchav Member AT&T should Revamp its GigaPower! If AT&T starts Rolling Out its FTTH GigaPower, they should do just fine with Streaming DirecTV and Time Warner! xrobertcmx

Premium Member

join:2001-06-18

White Plains, MD 2 recommendations xrobertcmx Premium Member Kind of Expected DirecTV is not really competitive in a lot of markets. High cost, excellent picture, but many Cable Companies are discounting Internet + TV and pricing it below straight Internet. Add to that the prices for DirecTV out of promo being as much as the double play, and the market suddenly goes dry.

We had DirecTV last year and I did like it, but it always went down in storms and those are more and more frequent these past years. In Fayetteville, NC it was every afternoon last summer, or at least seemed that way.