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After a brutal quarter for traditional pay TV, which saw historic subscriber losses, TV networks are looking around nervously for which distributors can pick up the slack.

But the word from AT&T isn't encouraging.

In a note distributed on Monday, analysts at UBS took a close look at what AT&T management's recent comments indicate about the future of its TV business.

"AT&T has indicated it is shifting focus from subscriber growth to profitability and is reevaluating its programming lineups to offer skinnier bundles," according to the UBS note. AT&T launched its digital TV package, DirecTV Now, in late 2016, and has tolerated bad margins in favor of growth. The service now has almost 2 million subscribers.

Click here to read more about a possible shake-up of AT&T's DirecTV business.

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