AT&T confirms traditional TV subs haemorrhage | Major Businesses | Business
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Two weeks after filing an 8-K form that contained alarming details regarding its entertainment division, AT&T has published its third quarter results substantiating the fact that the company has seen a precipitous decline in its traditional TV business.

directv now 23 aug 2017Overall for the third quarter ended 30 September 2017, the comms giant posted consolidated revenues of $39.7 billion, $1.2 billion down on the same period last year. For the first nine months of the fiscal year, revenues amounted to $118.9 billion, sliding $3.1 billion on an annual basis. Operating income for the third quarter was $6.4 billion and net income attributable to AT&T was $3 billion.

The company asserted that its wireless and video bundling strategy were driving its results with satellite churn dropping by 50% when bundled with a mobile package.

However, the big news on TV and video was that during the quarter the company witnessed a net fall of 90,000 subs to total 25.1 million, essentially flat from a year ago. Traditional video subscribers declined 385,000 in the third quarter due, insisted the company, to heightened competition in traditional pay-TV markets and over-the-top (OTT) services, hurricanes and stricter credit standards. Satellite subscribers declined by 251,000 in the quarter and IPTV subscribers declined by 134,000. About 85% of the traditional AT&T video base is now on the satellite platform.

The third quarter results also showed that core U-Verse TV subs have fallen from 4.5 million at the end of Q3 2016 to 3.7 million at the end of the same period in 2017, while the DIRECTV NOW OTT service added 296,000 subscribers in the to reach 787,000 customers. AT&T said that during the quarter, it had enhanced the user experience, added streaming devices and increased content choices.