AT&T® Loses More Pay TV Subscribers as Cord Cutting Trend Continues

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Cord Cutting Trend Continues

Cord cutting is rapidly spreading towards more regions of the country. The trend has led to the abandonment of traditional cable television in favor of streaming television and other new forms. The rise in cord cutting has increased and this has resulted in a major setback for many of the TV providers offering the best cable deals to the customers. This trend has now begun to increasingly affect AT&T® even more so.

The Telco has been previously resistant to the monumental changes set forth by cord cutting because of its array of services like streaming, as well as its popular triple play bundle offerings of TV, internet, and wireless. However, statistics show otherwise as with the last quarter AT&T® has lost about 400,000 of its traditional cable subscribers. AT&T® has registered that they have come across a total loss of approximately 90,000 pay-TV subscribers.

More subscribers are abandoning traditional pay-TV services faster and this is problematic for AT&T® and its subscribers in the DirecTV Now® service. This streaming service has managed to attract many of the customers left off in the process of cord cutting. Available for the customers at a rate of $35 per month DirecTV Now® is priced much lesser than a traditional pay TV bundle.

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DirecTV Now® Service

AT&T® has recently stated that the subscriber base on its DirecTV Now® platform has increased to about 300,000. This also means that the Telco is also losing more customers into its best cable service, satellite, and the U-Verse® service. The lesser rates charged from the wireless subscribers of AT&T® are just $10 that have led to a steep decline in the profits gained by the Telco from operating these services.

AT&T® has declared that this large-scale loss of its traditional pay-TV subscribers will severely affect the revenues sourced from its entertainment group and margins. However, it should be mentioned that cord cutting has not only affected AT&T® but also many of its rival providers mainly Comcast Corporation®. The current rate of cord cutting can have a significant impact on the functioning of these services.

Even though AT&T® and other providers manage to focus more on their streaming services, this means that several of the streaming platforms will be easily brought nationwide. This will eventually cause increased completion in the domain of pay TV service. The cheaper rates of streaming TV can largely benefit customers but will eventually cause significant revenue and customer losses for the cable TV providers.

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