Why AT&T Is Facing a Decline in Its US Pay-TV Customer Base
Like other pay-TV service operators, AT&T (T) is facing a decline in its US pay-TV subscriber base due to cord-cutting. In the third quarter, AT&T lost 346,000 traditional US pay-TV customers. This number includes 359,000 satellite TV customer losses and 13,000 U-verse TV customer gains. In addition, Comcast (CMCSA) and Charter Communications (CHTR) had lost 95,000 and 66,000 residential video customers, respectively. This reduction in the traditional pay-TV customer base is mostly driven by rapid growth in the over-the-top (or OTT) video viewing trends.