The future of cord cutting. In keeping with the growing trend of financial losses in the traditional Pay TV industry, the service lost 385,000 subscribers between DIRECTV and U-verse.
The one bright spot for the company was DIRECTV NOW, the company’s live streaming service. In less than a year after its debut, the company signed up an additional 296,000 subscribers during the third quarter, bringing its overall total to nearly 800,000.
John Stephens, AT&T’s chief financial officer, indicated that 700,000 of the new DIRECTV NOW subscribers are new to AT&T.
Stephens also touted the growth of DIRECTV NOW, noting it has live local TV channels in more than 75 markets, and said customer acquisition costs for the OTT service are just a fraction of legacy pay-TV services. “We are confident in the direction we are heading,” he said.
Half of DirecTV Now’s customers have come from traditional pay-TV rivals, with 10% from DirecTV or U-verse and the rest representing “cord-nevers,” who have not previously had pay television, Stephens said on the call.