Can AT&T's New TV Service Stem Its Subscriber Losses?
AT&T's (NYSE: T) TV business lost a total of 4.1 million subscribers last year between its three products: DirecTV, U-Verse, and AT&T TV Now. While losses peaked in the third quarter, as management promised, the number of cancellations in the fourth quarter still came in higher than anticipated.
In order to stem those losses, AT&T's going all in on streaming video. Its new video service, AT&T TV, streams linear TV channels over the internet to a custom-built set-top box. AT&T TV also has an app for connected TV devices, tablets, and smartphones. Combined with HBO Max, which launches in a couple of months, streaming will be the "workhorse" that drives AT&T's television business going forward.
The new linear TV service launched this month, but there are still a few question marks about its ability to stem AT&T's subscriber losses.
Source Fool.com
