Verizon’s Fios video net additions
The major driver of Verizon’s (VZ) Wireline segment is its Fios offering. Verizon’s Fios is a fiber-optic network service that provides subscribers with video, Internet, and voice services. Wall Street analysts expect a net loss of 60,000 Fios video subscribers in the first quarter, as the company continued to face stiff competition from OTT (over-the-top) services in the period.
In the fourth quarter of 2018, Verizon lost 46,000 Fios video net customers compared to its net loss of 29,000 customers in the fourth quarter of 2017. At the end of December 31, 2018, Verizon had 4.5 million Fios video connections.
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In the fourth quarter of 2018, Charter Communications (CHTR) and Comcast (CMCSA) posted net losses of 36,000 and 19,000 residential video subscribers, respectively. AT&T (T) reported a net loss of 391,000 traditional US pay-TV subscribers in the same quarter.
Pay-TV operators are losing subscribers as users continue to migrate from traditional linear TV to OTT services at competitive prices. OTT services directly provide content to consumers via the Internet. YouTube TV, Amazon’s Prime Video, and Netflix (NFLX) are popular streaming service providers. In the fourth quarter of 2018, Netflix added 8.8 million subscribers worldwide.