NEW YORK – Traditional TV continues to remove business to the web.
ATT (T) pronounced Wednesday that it lost 90,000 video subscribers in the U.S. in the third quarter, a steeper dump than the same duration last year. That includes a benefit of 300,000 business in DirecTV Now, an online cable-like service that is cheaper than normal TV.
The telecom company blames tough competition, the impact from hurricanes and stricter credit standards for customers.
The categorical reason consumers are “cutting the cord”? Price. More than 85 percent of cord-cutters contend that compensate TV services are too expensive, according to eMarketer. The internet also gives users a accumulation of ways for examination video.
ATT batch is down 4.7 percent to $36.38 in afternoon trading. Shares of wire companies Comcast (CMCSA) and Charter Communications (CHTR), along with rival satellite TV provider Dish, are also down.
Jonathan Chaplin, an researcher with New Street Research, estimates the wire attention lost scarcely 970,000 subscribers between Apr and June, and 2.7 million over the last 4 quarters.
“The trend is accelerating, and with new OTT TV products entering the marketplace in coming quarters… we do not see pressures from cord-cutting easing any time soon,” he pronounced in a new note, referring to the flourishing series of “over-the-top” streaming services now competing with normal TV.