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Verizon lost 68,000 net pay TV subscribers for its FiOS consumer video service in the third quarter, compared with a loss of 62,000 in the second quarter and 61,000 in the year-ago period, the telecom giant said on Wednesday.
The company has in the past often cited “the ongoing shift from traditional linear video to over-the-top offerings” as a key driver of video subscriber declines.
Verizon, led by CEO Hans Vestberg, gained 98,000 consumer broadband internet subscribers, compared with 139,000 in the year-ago period that was boosted by the coronavirus pandemic.
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 Verizon Media unit, which includes the likes of Yahoo and AOL, contributed about $1.4 billion in third-quarter revenue for the two months of the period that it was still part of the telecom giant. For the full third quarter of 2020, it had reported revenue of $1.7 billion.
Earlier this year, Verizon struck a $5 billion deal to sell Verizon Media to private equity firm Apollo Global Management, with the deal closing in early September. Verizon retains a 10 percent stake in the new company.
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