AT&T’s DIRECTV NOW customers
AT&T’s (T) DIRECTV NOW is a streaming service that delivers content directly to users via the Internet as a substitute to signing up for a traditional satellite or cable connection. In the fourth quarter, AT&T lost 267,000 DIRECTV NOW customers compared to 368,000 net customer additions in the fourth quarter of 2017.
The significant YoY (year-over-year) reduction in the company’s DIRECTV NOW customers was the result of an introductory offer coming to an end. DIRECTV NOW had 1.6 million customers as of December 31, 2018.
Amazon Prime Video, Hulu, and Netflix (NFLX) are AT&T’s other competitors in the streaming space. In the fourth quarter, Netflix added 8.8 million subscribers worldwide. Netflix had 139.3 million total subscribers as of December 31.
As streaming services continue to rapidly add customers, traditional pay-TV players are losing customers. AT&T lost 391,000 total traditional US pay-TV subscribers in the fourth quarter. In comparison, Charter Communications (CHTR) and Comcast (CMCSA) lost 36,000 and 19,000 residential video customers, respectively.