AT&T reported today that it lost a net of 627,000 video subscribers in the third quarter. That includes DIRECTV, U-verse, AT&T TV and AT&T TV Now, but the lion’s share of defections likely came from DIRECTV. (AT&T does not break out subscriber numbers for DIRECTV, U-verse and AT&T TV; it did report that AT&T TV Now lost a net of 37,000 subscribers.)
While the quarterly losses were considerably less than last year’s third quarter when AT&T’s TV services lost a whopping 1.4 million, the continued exodus of subscribers will further fuel speculation that the company will sell DIRECTV in the near future; it would surprise few if AT&T also tried to jettison U-verse and AT&T TV Now which are also experiencing significant sub declines. (In contrast, AT&T is expected to continue investing in AT&T TV, which launched nationwide just eight months ago.)
AT&T’s investor briefing, which was released today, blamed greater competition among video providers as a major reason for the continued subscriber defections by DIRECTV and U-verse.
“(Loss) due to competition as well as lower gross adds from continued focus on adding higher value customers,” the company stated.
As for AT&T TV Now, one of the company’s two multi-channel live streaming services, AT&T blamed “less promotional activity.”
AT&T today said its TV services had 17.783 million subscribers at the end of the third quarter. In the third quarter of 2015, shortly after AT&T purchased DIRECTV, the company had nearly 26 million, 19.57 million from DIRECTV and 5.9 million from U-verse.
That means that AT&T has lost nearly eight million video subscribers in the last five years since purchasing the nation’s largest satellite TV service.
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Who would possibly buy them, and who could turn it around and how? Is satellite really on it’s last leg???
What would you suggest for “Out in the Country Viewers” ?
My impression is AT&T (DirecTv) does not accept any blame for their catastrophic number of customer defections. Rather, they want to blame increased competition, changing technologies (streaming), and programming costs for the decline.
Poor customer service, astronomical rate increases, foreign call centers, deceptive contracts, etc. have absolutely nothing to do with customer dissatisfaction…or so they maintain.
Until the poor policy decisions made by thick-headed executives are reevaluated, customers will continue their mass exodus. Somewhere, somehow, AT&T (DirecTv) executives need to look at their business model and quit blatantly ignoring the customer base!
P.S. This holds true as well for anyone foolish enough to purchase DirecTv.
Lets do the math. If Directv had just 10 million subscribers and the average subscriber paid $200 per month ( basic service, enhabced service, and pay per view, etc ) that means 10 million x 200 x 12 months = 24 BILLION dollars a year. The only way you can’t be profitable on revenue of 24 billion is incompetence!!! And until there is high speed internet everywhere there will be a market for DTV and Dish.