Verizon’s Fios TV subscriber losses continued their slow but steady declines in the first quarter of 2020.
The company posted a net loss of 84,000 Fios video subscribers, up from a net loss of 55,000 in the same quarter one year ago. The company now has approximately 4.07 million Fios TV subscribers, down 5.9% annually. Fios Video business subscribers stayed flat year over year.
The company once again attributed the decline in video subscribers to the “ongoing shift from traditional linear video to over-the-top offerings.” However, Verizon’s consumer business segment reported 59,000 Fios Internet net additions as “work-from-home, in-home schooling, and other related measures increased the demand for high-quality broadband offerings.”
Consolidated revenue for the consumer segment fell 1.7% to $21.76 billion and operating income rose slightly to $7.28 billion.
As Verizon’s video business has steadily declined, the company has leaned more into partnerships with streaming services. Earlier this year, Verizon announced new “Mix & Match” pricing for its video, internet and phone services and YouTube TV appeared as a prominent option for Verizon customers wanting live TV. Last year, Verizon announced it would give a free year of Disney+ to both 4G LTE and 5G unlimited subscribers along with new Fios Home Internet and 5G Home Internet customers.
While Verizon’s consumer businesses held mostly steady during the COVID-19 crisis, its media segment was negatively impacted by the virus. Total Verizon Media revenues were $1.7 billion, down 4% year over year, which the company said was “driven almost entirely by COVID-19 impacts. Prior to the COVID-19 crisis, year over year revenue trends continued the steady improvement seen in full-year 2019. Verizon Media has seen increased levels of customer engagement on its platforms, but advertising rates have declined in the current environment.”