Verizon Loses 86,000 Video Subs in Second Quarter, Adds Broadband Users

Verizon lost 86,000 net pay TV subscribers for its Fios consumer video service in the second quarter, compared with a loss of 78,000 in the first quarter and a loss of 62,000 in the year-ago period, the telecom giant said Friday.

The company has in the past often cited “the ongoing shift from traditional linear video to over-the-top offerings,” amid the growth of streaming services, as a key driver of video subscriber declines. It ended June with more than 3.4 million consumer Fios pay TV subscribers.

Verizon, led by chairman and CEO Hans Vestberg, recorded 268,000 total broadband net additions, including 36,000 Fios Internet net additions at Verizon Consumer, ending June with more than 6.6 million Fios and more than 7.3 million total broadband subscribers. “Total broadband net additions increased 39,000 from first-quarter 2022,” the company noted.

The telecom giant has been shifting its video focus away from Fios TV to partnerships with third-party streaming services as it positions itself as a key distribution platform for them. For example, Verizon has a deal with The Walt Disney Co. for the Disney bundle, which gives customers with select Verizon wireless unlimited plans access to Disney streaming services Disney+, Hulu and ESPN+.

The company sold its Verizon Media unit, which includes the likes of Yahoo and AOL, last year. Friday’s quarterly earnings report was the third since the deal not to include any of the business’ results.

Verizon’s second-quarter revenue was little changed at $33.8 billion, but its earnings fell 10.7 percent to $5.3 billion.

“As the market leader, in a very competitive industry, we are determined to improve our operational and financial performance for the second half of the year,” Vestberg said. “With our network-as-a-service foundation, our new consumer mobility plans, and recent pricing actions, we are being deliberate in our decisions to improve our profitable growth opportunities today and into the future.”

See also  Zachary Quinto Teaming with James Patterson on Audible Original Thriller ‘The Method’