In results that will likely add fuel to the cord-cutting debate, AT&T said it lost 22,000 U-verse TV subscribers, versus 190,000 net adds in the year-ago quarter.
However, AT&T, which ended Q2 with 5.97 million U-verse video subs and is closing in on its acquisition of DirecTV, did not chalk up that drop-off to cord-cutting but to typical “seasonality” seen in the period alongside the decision to target promotions to more profitable, higher-value subscribers.
"On the U-verse video side, the first point to make is that the second quarter is always seasonally a challenge,” AT&T CFO John Stephens said on Thursday afternoon’s earnings call. “You’ve got a lot of relocations; you’ve got a lot of students returning from college. And with our limited footprint with regard to video capabilities, it’s always a challenge for us.”