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Verizon lost 84,000 pay TV subscribers in Q1 as consumers continue shift to streaming

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Verizon misplaced 84,000 Fios TV subscribers and 68,000 postpaid cell phone subscribers in the course of the first quarter of 2020 because the telecom firm continued seeing the results of the COVID-19 pandemic. In its earnings report this morning, Verizon stated it’s seeing an “ongoing shift from conventional linear video to over-the-top choices.” That pattern isn’t new, however widespread quarantines are solely serving to to push it alongside.

With 70 percent of Verizon’s stores closed, the corporate stated it additionally noticed declines in gear gross sales. Nonetheless, its client division reported 59,000 internet additions to its Fios web service.

Verizon had first-quarter income of $31.6 billion, which was in need of the $32.four billion forecast by Wall Road analysts.

Verizon’s media division posted income of $1.7 billion for the primary quarter, a year-over-year drop of four p.c. This was as a consequence of weak promoting tendencies final month, the corporate stated; its media unit contains HuffPost and Yahoo.

“Previous to the COVID-19 disaster, year-over-year income tendencies continued the regular enchancment seen in full-year 2019. Verizon Media has seen elevated ranges of buyer engagement on its platforms, however promoting charges have declined within the present surroundings.”

Verizon is collaborating within the Hold Individuals Related Pledge, waiving late charges and never terminating service for patrons in the course of the pandemic. Verizon CEO Hans Vestberg stated in an interview on CNBC after the earnings name as we speak that the corporate was working with prospects who’ve been unable to pay.

He additionally stated Verizon remains to be on plan for its 5G deployment, though individuals aren’t going into shops to purchase gadgets. “We’ve got good connections with our provide chain,” Vestberg stated. “I believe when individuals see the enhancements of 5G I believe that individuals will truly need it.”

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