AT&T lost 544,000 pay TV subscribers and 83,000 subscribers to its DirecTV Now streaming cable service as customers leave over price increases. AT&T, which recently increased the cost of DirecTV Now to $50 per month from $40, expects to see more customer losses in the second quarter.
Executives said they were optimistic that the DirecTV Now defections will stabilize in the second half of the year given the rate of new customers adopting the offering. AT&T finished the quarter with 23.8 million pay TV subscribers and 1.5 million DirecTV Now subscribers.
Meanwhile, AT&T said its WarnerMedia unit will reveal details of its upcoming streaming service at an investor day this fall. That follows Disney’s glitzy presentation a couple of weeks ago. Both services are due to launch at the end of the year.