In recent years, cable television has gradually declined in popularity due to the rapid growth of streaming services, which offer consumers a more affordable way to watch movies and TV shows.
DirecTV, like many other cable companies, has experienced a mass exodus of TV customers as the number of streaming platforms continues to multiply.
According to a recent report by MoffettNathanson, which was shared with TheStreet, DirecTV lost about 288,000 cable customers in the third quarter of 2025.
Cable and satellite TV companies lost a total of 988,000 TV customers during the quarter, underscoring that the cord-cutting trend continues to gain momentum.
A recent survey from All About Cookies found that many consumers do not regret their decision to discontinue their cable TV service.
Less than 30% of Americans watch television via traditional cable or satellite services.
More accurate, 40% of baby boomers use traditional cable or satellite television services compared to 21% of Generation Z consumers.
Also, 95% of cord cutters they are happy with their decision to switch from traditional TV services, while only 5% regret.
Approximate 90% of Americans watch shows through paid streaming services.
The common man pays $48 per month for about three popular streaming services, while the average amount consumers pay for cable TV is $83. Source: All About Cookies
“Rising cable costs and the thousands of options for shows and movies on various streaming services have been key factors in the popularity of cord-cutting,” Josh Kobert, data journalist at All About Cookies, wrote in the survey.
“As long as streaming subscriptions are more affordable than cable for the average household, it makes sense to move away from cable,” he said.
DirectTV is losing customers amid increased competition from streaming services.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
DirecTV is losing customers amid increased competition from streaming services.Shutterstock
As DirecTV sees the number of cable subscribers decline, it has scaled back its satellite television service and increased its focus on growing its streaming business.
However, despite this change in direction, DirecTV recently sounded the alarm about a growing threat to its satellite TV service – SpaceX’s Starlink.
In 2019, SpaceX launched Starlink, its satellite internet service, which has attracted more than 9 million customers to date.
The service is available in more than 155 countries on all seven continents and is in high demand in both rural and disadvantaged areas, which are the main markets for satellite television services.
Internet provision in these areas makes it easier for consumers to switch from cable services to streaming services, posing a major threat to DirecTV and other satellite TV companies.
SpaceX currently has more than 9,000 Starlink satellites in orbit, and analysts at Quilty Space predict Starlink will generate $15.9 billion in revenue by 2026.
As demand for Starlink is expected to increase, SpaceX previously filed an application with the Federal Communications Commission in August requesting a waiver for equivalent power flux density (EPFD) limits. These limits essentially set power density limits on satellites, allowing SpaceX to modify its Starlink satellites in low Earth orbit.
In the application, SpaceX said the limits are “outdated” and that waiving them for these satellites can “provide significantly higher speeds and an increase in network capacity for immediate consumers.”
However, in a letter sent to the FCC on December 15, DirecTV claims that if the FCC were to waive these limits for SpaceX, it could “expose DirecTV and its customers to significant and additional harmful interference” impacting its satellite television service.
DirecTV claims that its customer satellite dish terminals have no way to mitigate the impact of any interference from SpaceX, which could lead to customer losses.
Related: Comcast makes cable TV plans more generous after customer losses
“In most cases, DirecTV will have little knowledge of how much additional NGSO (non-geostationary satellite orbit) interference has degraded a particular customer’s experience until that customer decides to opt out of DirecTV service, at which point any interference remedy would come too late,” DirecTV wrote in the letter.
In August, SpaceX argued that if it gets a waiver on EPFD limits, it can prevent interference with other satellite networks.
The company even submitted test results involving DirecTV Colombia to the FCC. SpaceX claims that the test shows that the risk of signal degradation to DirecTV satellites in Colombia is “negligible, and the increase in short-term connection unavailability is only ~0.05%.
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However, DirecTV conducted its own review of SpaceX’s tests in Colombia, warning that the risks of interference from SpaceX’s Starlink satellites, which could lead to service disruptions, “are not rare” and can occur “repeatedly every day, even in locations with a normally very strong connection.”
In a Dec. 15 FCC filing, SpaceX argued that DirecTV’s analysis of its test is a “flawed study.”
“In turn, DIRECTV presented a poorly designed model as a counter to one of these real-world tests,” SpaceX said in the filing. “This study was prepared by a consultant, Marc Dupuis, with a long history of designing biased studies to disadvantage next-generation satellite systems, and this study does not contradict that trend.”
DirecTV’s stark warning about SpaceX’s Starlink comes at a time when Starlink is resonating with consumers across the country. A recent survey by CableTV.com found that Starlink has the highest approval score among US consumers (94%) compared to other Internet providers.
“Starlink continues its top ranking in this section with an astounding 94 percent approval score, and is again followed by Google Fiber and T-Mobile 5G Home Internet,” CableTV.com Internet Editor Eric Chiu wrote in the survey.
“These three ISPs (Internet Service Providers) target very different markets, but have been successful by exceeding customer expectations in areas such as reliability, performance and value,” he continued.
Related: T-Mobile Launches Free Offer for Customers After Major Loss
This story was originally published by TheStreet on December 25, 2025, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.
