AT&T loses 620,000 video subs in Q1 as DirecTV deal moves ahead

[MitchDeerfield]

AT&T lost another 620,000 premium video subscribers in the first quarter as it moves forward with a deal to spin off DirecTV, U-verse and AT&T TV.


The net loss is a significant improvement over the 897,000 premium TV losses in the same quarter of 2020 but AT&T’s total video subscriber base is still shrinking at an alarming annual rate of 14.6%. The company said it ended the quarter with approximately 15.89 million premium video subscribers.

Due to the pending transaction, AT&T is now categorizing its video business segment results as held for sale and reporting quarterly results within its Corporate and Other segment. The company is no longer breaking out subscriber numbers for AT&T TV Now, its virtual MVPD that stopped accepting new subscribers after it was merged with AT&T TV earlier this year.

AT&T’s video business revenues fell 9.2% to approximately $6.7 billion during the quarter but, thanks to some reductions in operating expenses, grew its operating income 13.2% to $901 million.

In February, AT&T and TPG agreed to establish a new company named DirecTV that will own and operate AT&T’s three video services. The companies said that the deal implies an enterprise value for the new company of $16.25 billion. AT&T will own 70% of the common equity and TPG will own 30% for New DirecTV.

While the linear video business continued to sag, AT&T’s WarnerMedia segment was buoyed by more positive momentum for HBO Max. The company is added 2.7 million total domestic HBO Max and HBO subscribers during the quarter, bringing its subscriber totals to 44.2 million domestically and 64 million globally.

AT&T loses 620,000 video subs in Q1 as DirecTV deal moves ahead

AT&T lost another 620,000 premium video subscribers in the first quarter as it moves forward with a deal to spin off DirecTV, U-verse and AT&T TV. | AT&T lost another 620,000 premium video subscribers in the first quarter as it moves forward with a deal to spin off DirecTV, U-verse and AT&T TV.

www.fiercevideo.com

 

[MitchDeerfield]

AT&T lost another 620,000 premium video subscribers in the first quarter as it moves forward with a deal to spin off DirecTV, U-verse and AT&T TV.


The net loss is a significant improvement over the 897,000 premium TV losses in the same quarter of 2020 but AT&T’s total video subscriber base is still shrinking at an alarming annual rate of 14.6%. The company said it ended the quarter with approximately 15.89 million premium video subscribers.

Due to the pending transaction, AT&T is now categorizing its video business segment results as held for sale and reporting quarterly results within its Corporate and Other segment. The company is no longer breaking out subscriber numbers for AT&T TV Now, its virtual MVPD that stopped accepting new subscribers after it was merged with AT&T TV earlier this year.

AT&T’s video business revenues fell 9.2% to approximately $6.7 billion during the quarter but, thanks to some reductions in operating expenses, grew its operating income 13.2% to $901 million.

In February, AT&T and TPG agreed to establish a new company named DirecTV that will own and operate AT&T’s three video services. The companies said that the deal implies an enterprise value for the new company of $16.25 billion. AT&T will own 70% of the common equity and TPG will own 30% for New DirecTV.

While the linear video business continued to sag, AT&T’s WarnerMedia segment was buoyed by more positive momentum for HBO Max. The company is added 2.7 million total domestic HBO Max and HBO subscribers during the quarter, bringing its subscriber totals to 44.2 million domestically and 64 million globally.

AT&T loses 620,000 video subs in Q1 as DirecTV deal moves ahead

AT&T lost another 620,000 premium video subscribers in the first quarter as it moves forward with a deal to spin off DirecTV, U-verse and AT&T TV. | AT&T lost another 620,000 premium video subscribers in the first quarter as it moves forward with a deal to spin off DirecTV, U-verse and AT&T TV.

www.fiercevideo.com

Losing 620,000 subscribers is a "significant improvement" according to AT&T Management.

 

[Juan]

Lets see what Dish dropd

 

[lparsons21]

Losing 620,000 subscribers is a "significant improvement" according to AT&T Management.

Gotta love corporate speak!

Actually I’m amazed that any of the live TV services, sat/streaming/cable, aren’t dropping subs by the drove. So little new and original programming these days. Even the broadcast channels are using way too many reruns these days among the runs of lame game shows, contests with celebrity judges overacting their butts off and ‘reality’ shows that aren’t any kind of reality. The ‘cable’ channels are even worse.

More and more services like Netflix, Amazon Prime, HBO Max and others are providing much better stuff to watch with better PQ and audio for the most part, and at prices that are very much cost saving.

 

[MitchDeerfield]

Their whole business model is flawed. Forcing people to pay for hundreds of channels that they don't ever watch.

 

[comfortably_numb]

More and more services like Netflix, Amazon Prime, HBO Max and others are providing much better stuff to watch with better PQ and audio for the most part, and at prices that are very much cost saving

I agree. Haven't paid for linear TV for several years now. I have Disney+, Netflix, a ton of movies on Vudu, and I use my Dad's Spectrum credentials to access tons of "TV anywhere" apps.

 

[raoul5788]

Their whole business model is flawed. Forcing people to pay for hundreds of channels that they don't ever watch.

It wasn't flawed until recently.

 

[comfortably_numb]

It wasn't flawed until recently.

If by "recently" you mean 10 years ago, then yes. These companies have been bleeding subs for over a decade.

 

[raoul5788]

If by "recently" you mean 10 years ago, then yes. These companies have been bleeding subs for over a decade.

Directv started losing subs in late 2016. DirecTV: no of video subscribers in the U.S. 2014-2020 | Statista.

 

[Bruce]

It wasn't flawed until recently.

DirecTV started losing subs in 2017 ( they had gains in 2016), small quarterly decreases began, they had a great resistance against losing subs ( my guess is because of sports) until Quarter 2, 2017, they were at 21 million, now down to 15.9 million.

Other providers has been losing subs in high numbers before DirecTV, Dish Network, for example, starting losing subs in 2014, they had 14 million then and now down to roughly 8.8 million.

also for Dish-

Dish Network: pay TV subscribers in the U.S. 2023 | Statista

In the third quarter of 2023, Dish Network had 6.72 million traditional pay TV subscribers, down from nearly 7.61 million in the corresponding quarter of the previous year.

www.statista.com

 

[MitchDeerfield]

It wasn't flawed until recently.

Yeah, like three years ago, with high speed internet bypassing satellite and cable TV delivery.

 

[Juan]

Yeah, like three years ago, with high speed internet bypassing satellite and cable TV delivery.

It was before that...just too expensive to justify

 

[Bruce]

Yeah, like three years ago, with high speed internet bypassing satellite and cable TV delivery.

As I posted above, 3 years is pretty recent, but these last 3 years has been pretty brutal for DirecTV and longer for other providers.

As far as high speed internet bypassing satellite and cable TV delivery, we are in a change period as far as Television goes, who would of thought we would get new big time movies(legally) via streaming apps that should be in theaters, these changes will accelerate as those who could not get fast broadband will be able to ( Starlink) and then leave their only choice for TV.

 

[comfortably_numb]

these changes will accelerate as those who could not get fast broadband will be able to ( Starlink).

Yep. "Old TV" is over.

 

[Bruce]

Yep. "Old TV" is over.

And broadcasters do not care, they are going to ride the gravy train of Traditional Providers until it derails, they like the money they get from sub fees and commercials, when it is over they will have their apps up to continue to make money, most of the major studios/Broadcasters already do.

 

[Juan]

And broadcasters do not care, they are going to ride the gravy train of Traditional Providers until it derails, they like the money they get from sub fees and commercials, when it is over they will have their apps up to continue to make money, most of the major studios/Broadcasters already do.

Big winner will be the studios

 

[ejb1980]

If not for sports.....
Seriously if not for sports, what purpose would Directv serve? There is virtually no good TV-show content on the channels not in the 500s. The broadcast networks will never be able to compete content-wise as long as they are, well, broadcast networks.

I do not like the streaming model of $4.99 here, $8.99 here etc. Each of them will claim one sport I want to watch so I would end up paying the same and having to flip through all these annoying apps just to watch what is all in one place now. I simply do not understand how people watch TV that way. There is good content on some of the streamers but it is very hard to find with all the scrolling. So little is shown on the screen at once and it goes in all directions... overwhelming and not sure where to go. And you can't just search for what you don't know exists. Most of the streaming shows I watch I see from ads on regular TV during sports!

 

[comfortably_numb]

Seriously if not for sports, what purpose would Directv serve?

None. It's a service for old people who like a STB and a "clicker."

 

[Bruce]

Big winner will be the studios

Broadcasters are the studios-

NBC, SyFy, USA and a few others-Universal/Comcast
ABC and too many to name-Disney and 20(1)th Century Fox
CBS and too many to name-Viacom/Paramount
HBO, TBS, Cartoon, TNT-Warner Bros

And every one of them has paid apps.

 

[Juan]

Broadcasters are the studios-

NBC, SyFy, USA and a few others-Universal/Comcast
ABC and too many to name-Disney and 20(1)th Century Fox
CBS and too many to name-Viacom/Paramount
HBO, TBS, Cartoon, TNT-Warner Bros

And every one of them has paid apps.

On the other hand...when music went digital...it killed the recording studio industry because everyone started " sharing" songs for free....digital newspapers were supposed to clean up on digital advertising except google, facebook and others got to it before they did...should be interesting