AT&T's Streaming Strategy Is Still a Fragmented Mess
AT&T (NYSE: T) recently reported a 15% annual jump in revenues and a 2% dip in adjusted earnings in its second quarter, and both figures met Wall Street's expectations. However, AT&T's TV business continued to struggle -- DIRECTV Now's subscriber base contracted by 168,000 to 1.3 million, while its premium TV subscribers across all verticals declined by 778,000 to 21.6 million.
That combined loss of 946,000 video subscribers was much worse than analysts' projections for a loss of 586,100 subscribers. Once again, cord-cutters whittled away at AT&T's base of pay TV subscribers, and competition from streaming rivals like Netflix (NASDAQ: NFLX) lured viewers away from DIRECTV Now.
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