Make us your home page
Instagram

AT&T warning is latest sign more consumers are cutting the cord

AT&T said Wednesday, Oct. 11, 2017, that it lost 90,000 video subscribers in the U.S. in the third quarter, a steeper drop than the same period a year earlier. That includes a gain of 300,000 customers in DirecTV Now, an online cable-like service that is cheaper than traditional TV. 
[AP file Photo]

AT&T said Wednesday, Oct. 11, 2017, that it lost 90,000 video subscribers in the U.S. in the third quarter, a steeper drop than the same period a year earlier. That includes a gain of 300,000 customers in DirecTV Now, an online cable-like service that is cheaper than traditional TV. [AP file Photo]

NEW YORK — Signs that more people are dropping their traditional TV subscriptions weighed on TV providers' stocks Thursday.

AT&T said it lost 90,000 video subscribers in the U.S. in the third quarter. It's a steeper drop than the same period last year, even though gains from its newer, cheaper online cable-like service, DirecTV Now, are included. DirecTV Now wasn't available in the July-September quarter in 2016.

DirecTV Now added 300,000 subscribers in the quarter, so AT&T lost about 390,000 satellite TV and cable customers.

AT&T, which is also the No. 2 wireless carrier in the U.S., blames tough competition from both traditional TV providers like Comcast and newer digital-video services like YouTube TV. It also blames the impact from hurricanes and stricter credit standards for customers.

AT&T's prediction, issued after the market closed Wednesday, echoed Comcast's forecast in early September of third-quarter losses of 100,000 to 150,000 video customers due. That would be Comcast's largest quarterly loss since 2014. Comcast also blamed competition and weather.

Rising prices for traditional TV bundles and those growing digital options are increasingly driving customers online and away from traditional TV.

"It should be clear that DirecTV, like all of its cable peers, is suffering from the ravages of cord-cutting," MoffettNathanson analyst Craig Moffett wrote in a Wednesday night note to investors.

AT&T stock fell 4.5 percent to $36.48 in afternoon trading. Shares of cable companies Comcast and Charter and rival satellite TV provider Dish also dropped.

AT&T warning is latest sign more consumers are cutting the cord 10/12/17 [Last modified: Thursday, October 12, 2017 2:38pm]
Photo reprints | Article reprints

    

Join the discussion: Click to view comments, add yours

Loading...
  1. To test for climate disasters, like hurricanes: build stuff, then blow it apart

    Hurricanes

    WEST GLOCESTER, R.I. — In the backwoods of Rhode Island, a team of researchers spends whole days trying to destroy things: setting boxes on fire, shattering chunks of ice, hurling debris through the air at hurricane speed.

  2. Kathy Fountain, from anchor chair to therapist's chair

    Business

    A knowledgeable voice and familiar face beamed into Tampa Bay homes when Kathy Fountain delivered the 5 o'clock news and chatted with talk show guests on WTVT-Ch. 13. She created some news of her own as co-anchor of the first female team in the Tampa Bay area, "so radical at the time," she says.

  3. Ruskin artist to help poor kids build bikes reflecting their personalities

    Human Interest

    RUSKIN — Art meets transportation for a good cause in an after-school program where two dozen kids will create bicycles guaranteed to turn heads.

  4. Driven by demand, Planned Parenthood opens second clinic in Tampa

    Health

    The floor-to-ceiling glass windows are heavily tinted and the inside is hidden behind rows of curtains. Security cameras monitor every corner, and only patients with an appointment and valid identification can pass through the intentionally cramped entrance area. A receptionist sits behind a glass window. The more …

  5. Record numbers are signing up for Obamacare in Florida as enrollment period draws to a close

    Health

    With just four days left to enroll for health insurance on the federal exchange, advocates for the Affordable Care Act say Florida is headed for a record-breaking year.