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After Killing Promotions, DIRECTV NOW Has Huge Subscriber Losses For the First Time

AT&T announced their 2018 4th Quarter results today and as expected, DIRECTV NOW saw a major drop in subscribers.

After reaching 1,858,000 subscribers last quarter, the service lost 267,000 subscribers this quarter (and nearly 332,000 if you exclude those currently on trial). This is stunning considering that the company added 368,000 subscribers in the same quarter a year ago.

The dramatic drop in users does not come as a surprise. As part of his talk at the Citi 2019 Global TMT West Conference, John Stephens, AT&T Chief Financial Officer revealed that “at the end of the second quarter last year, about 500,000 DIRECTV NOW subscribers were on $10 per month promotional pricing plans.”

In response, the company removed device deals like a Free Apple TV 4K and their 3 month for $10 plan. In November, they removed discounts on the service for AT&T customers.

DIRECTV NOW has also faced increased competition from services like Hulu Live TV, PlayStation Vue, YouTube TV, and fuboTV.

The service is still the second largest vMVPD behind Sling TV, who at last reports had 2.34 million subscribers. Hulu Live TV announced in September that they had reached 1 million subscribers, while speculation place YouTube TV at 800,000, PlayStation Vue at 400,000, and fuboTV at 250,000.

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