Shares of TV providers drop as AT&T warns of video losses
NEW YORK — Signs that more people are dropping their traditional TV subscriptions weighed on TV providers’ stocks Thursday.
AT&T said it lost 90,000 video subscribers in the U.S. in the third quarter. It’s a steeper drop than the same period last year, even though gains from its newer, cheaper online cable-like service, DirecTV Now, are included. DirecTV Now wasn’t available in the July-September quarter in 2016.
DirecTV Now added 300,000 subscribers in the quarter, so AT&T lost about 390,000 satellite TV and cable customers.
AT&T, which is also the No. 2 wireless carrier in the U.S., blames tough competition from both traditional TV providers like Comcast and newer digital-video services like YouTube TV. It also blames the impact from hurricanes and stricter credit standards for customers.