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Updated from Oct. 10 with additional information.

AT&T's  (T) - Get AT&T Inc. Report  disclosure this week that it will lose more traditional video subscribers than expected in the third quarter continued to shake up the stocks of pay-TV providers on Friday. Renewed signs of cord cutting come a month after Comcast (CMCSA) - Get Comcast Corporation Class A Report  provided similar guidance about third-quarter video subscribers. 

The stakes are high for cable and broadband providers. If customers cut their cable TV and bundled landline phone service and only purchase broadband, a service provider stands to lose $32 in Ebitda per subscriber, Jefferies analyst Mike McCormack wrote in a Friday note. McCormack estimated that to make up the lost profits, a provider would have to charge $80 for a stand-alone broadband offering -- up from a current average of $49 per broadband user.

While its DirecTV Now streaming video service gained 300,000 subscribers in the third quarter, AT&T disclosed in a Wednesday filing with the Securities and Exchange Commission that it lost 390,000 subscribers to its traditional pay-TV video service. 

"No one should have expected AT&T's video subscriber results to be good in Q3," Craig Moffett of MoffettNathanson wrote in a research note. "But we doubt anyone expected them to be this bad."

Shares of the Dallas telecom, which reports third-quarter earnings Oct. 24, dropped 0.9% to $35.55 on Friday afternoon, after losing 6.1% Thursday. The telecom also said that hurricanes and earthquakes in Mexico would cut earnings by two cents per share. 

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Comcast, which said in early September that it expects to lose 100,000 to 150,000 video subscribers in the third quarter, gained 0.1% to $35.99 on Friday afternoon. The stock dropped 1.5% Thursday following AT&T's disclosure. Comcast reports third-quarter results on Oct. 26.

Meanwhile, Satellite TV company Dish (DISH) - Get DISH Network Corporation Class A Report fell 1.9% to $47.17 on Friday after dropping 5% Thursday, and cable operator Charter (CHTR) - Get Charter Communications, Inc. Class A Report  lost 0.2% to $355.01 Thursday following a decline of 2.6% on Thursday. Verizon (VZ) - Get Verizon Communications Inc. Report lost 0.8% to $48.02 Thursday, after a 1% drop a day earlier.

AT&T's streaming subscriptions help to offset lost traditional video subscribers, but will not fully replace the lost revenue. While DirecTV's satellite TV service goes for $50 per month, AT&T sells discounted DirecTV Now subscriptions for as little as $10 to unlimited wireless plan subscribers. 

Despite the drop in total video subscribers, Wells Fargo analyst Marci Ryvicker had some positive takeaways from AT&T's guidance. DirecTV Now's gains of 300,000 streaming subscribers topped her forecasts of 200,000 subscriber gains. Despite the subscriber losses and damage from storms and earthquakes, she noted, AT&T maintained full-year guidance for 2017. 

Comcast is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells CMCSA? Learn more now.

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