Save your FREE seat for Streaming Media Connect this August. Register Now!

AT&T Sees Big Losses with Pay TV, But Gains With DirecTV Now

Article Featured Image

Watching the falling fortunes of pay TV providers has become a spectator sport in the online video industry, and yesterday AT&T provided plenty to watch. The company announced it shed 385,000 pay TV subscribers in the third quarter of 2017, although it gained 296,000 (lower paying) DirecTV Now customers. That means an overall loss of 89,000 subscribers, and a drop from 25.92 million video subscribers last year to 25.08 million today. DirecTV Now has 800,000 subscribers.

The company sees its future in streaming, not satellite, and Variety broke the news that AT&T is preparing to offer an Android-based set-top box that delivers only streamed content. Diving into an FCC filing, Variety sees the device—model number C71KW-400—can stream 4K video, comes with a voice-activated remote, and carries no DirecTV Now branding. Rather than being a device for AT&T's skinny bundle, this Android box seems to have been created for the company's upcoming next-generation platform, which will stream all content and should debut early in 2018. It could appeal to people who can't get satellite service, such as some apartment dwellers.

“It should be clear that DirecTV, like all of its cable peers, is suffering from the ravages of cord-cutting,” Craig Moffett, founding partner with MoffettNathanson, told Reuters by email. “It is reasonable to expect a weak quarter for the whole pay TV industry.”

Streaming Covers
for qualified subscribers
Subscribe Now Current Issue Past Issues
Related Articles

The DirecTV Now Name Must Be the Real Problem, Decides AT&T

Customers are fleeing DirecTV Now because they don't like the DirecTV name, the parent company decides. What do they like better? Their phone company, of course.

Cord-Cutting Reaching an All-Time High: 'Man the Lifeboats!'

The rate that U.S. households cut the cord is higher than ever, and the trend shows no sign of ending. Media companies need to worry as vMVPDs don't pick up the slack.

DirecTV Now Simplifies Streaming Plans and Raises Prices

Consumers will like that it's easier to choose a plan—and that HBO is included—but might balk at paying more money for fewer channels.

Verizon Offers Best Mobile Video Performance: OpenSignal Report

Surprise: AT&T, didn't take second place, it took fourth. AT&T has been building up its content portfolio, not its back end.

DirecTV Now and PlayStation Vue Each Getting $5 Price Hike

Many cut the cord because they didn't like the constant price increases and bloated lineups of cable. But the skinny bundles haven't learned that lesson.

AT&T Named Best Cellular Network for Video Streaming in U.S.

In tests run by Global Wireless Solutions, AT&T delivered the most reliable video streams with the strongest video quality.

DirecTV Now Gains CBS Programming, LG webOS Gains Sling TV

From the start, CBS was the giant hole in AT&T's DirecTV Now offering. That will soon change, although only in select major cities.

DirecTV Now to Beta Test Cloud DVR Storage Later This Summer

Starting this fall, DirecTV Now and DirecTV app users will be the first to get live TV pausing and parental controls, as well as the cloud DVR.

T-Mobile Offers Free Year of Hulu for AT&T DirecTV Now Switchers

Unhappy with DirecTV Now service? T-Mobile is making the most of AT&T's misfire by throwing switchers a year of Hulu service.