From CNET: AT&T's transformation into a media company isn't going to be easy.
The telecom provider, which has placed big bets in media with its acquisition of DirecTV and Time Warner, posted a mixed bag in its third-quarter results, with a strong showing from its rebranded WarnerMedia segment but also a loss of traditional television customers.
WarnerMedia saw revenue rise 6.5 percent to $8.2 billion, helped by HBO's rising subscription revenue and the success of Crazy Rich Asians. But the company saw a net decline of 346,000 customers in traditional video, despite a gain of 49,000 customers in its DirecTV Now streaming service.
On the core wireless side, AT&T boasted that it added 3.4 million accounts in the US, but that was mostly driven by connected devices like cars and the Apple Watch, and a gain of 481,000 prepaid phone customers. It added 69,000 postpaid phone customers, or people who pay their bills at the end of the month and generally boast higher credit scores.
The wide range of results is part of the new status quo for AT&T, which is undergoing a transformation from a purely telecom company into a media powerhouse. The company is betting heavily on the move to streaming services, having offered two options -- DirecTV Now and AT&T Watch -- on top of the various streaming services tied directly to core properties like HBO. AT&T CEO Randall Stephenson said he plans to launch another one next year.
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