Shares of TV providers drop as AT&T warns of video losses

Markets Associated Press

(iStock)

Signs that more people are dropping their traditional TV subscriptions are weighing on TV providers' stocks.

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AT&T said Wednesday that it lost 90,000 video subscribers in the U.S. in the third quarter, a steeper drop than the same period last year. That includes a gain of 300,000 customers in DirecTV Now, an online cable-like service that is cheaper than traditional TV.

The telecom company blames tough competition, the impact from hurricanes and stricter credit standards for customers.

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Rising prices for traditional TV bundles and growing digital options are driving customers online and away from traditional TV.

AT&T stock is down 4 percent to $36.62 in afternoon trading. Shares of cable companies Comcast and Charter and rival satellite TV provider Dish are also down.

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