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AMC Networks U.S. Ad Revenue Drops 13%, Streaming Subscriptions Up to 11.5 Million

AMC

AMC Networks’ CEO Kristin Dolan spoke about getting more AMC content into streaming bundles in hopes of offsetting the impact of potential cord-cutting in paid TV services, according to The Hollywood Reporter.

The company, who is behind such TV brands as IFC, Sundance, AMC in addition to entertainment streaming platform AMC+, Acorn TV and horror streaming platform Shudder, also reported a 13% decline in US advertising revenue in Q1 of this year, following a 23 % decline during Q4 of 2023.

AMC Networks added 100,000 users in the first quarter to end March with a total of 11.5 million subs since returning to streaming subscriber growth during Q3 2023 and quarterly streaming revenues increased 3 percent to $145 million, “primarily driven by year-over-year subscriber growth and price increases”, per the company.

The company saw affiliate revenue drop 14%, explaining that the drop was “primarily due to basic subscriber declines.”

Additionally, content licensing revenues declined 40 percent to $62 million, and excluding the AMC Studios produced series ‘Silo’, content licensing revenues saw an increase of 31% and advertising revenue decreased to $140 million in the first quarter “due to linear ratings declines and a challenging ad market, partly offset by digital and advanced advertising revenue growth.”

The company is leaning into data-led audience targeting for ad buying, with Dolan saying earlier this year that –  “It’s a huge opportunity to finally swing the pendulum back from digital-first to shared purchase of traditional television as well as digital to support the advertiser efforts.”

AMC Networks Q1 total revenue dropped 17% – 6$ when excluding onetime year-ago factors, to $596 million, while operating income dropped 36% to $110 million and adjusted operating income fell 31% to $149 million.

Restructuring initiatives cost AMC Networks $4.8 million in the latest period, including “cash payments of $1.3 million for content impairments and other exit costs and $3.5 million for severance and employee-related costs.”

The company now plans to roll out stand-alone ad-supported versions of their platforms such as Acorn TV, Shudder, ALLBLK and HiDive in 2025 and the launch of AMC Stories and AMC Reality in the U.K. on ad-supported streamer ITVX.

“As we continue to focus on building our brands, expanding our partner relationships and serving viewers, we’re very confident in our ability to weather the changes that are happening in what remains a dynamic operating environment,” Dolan said during an analyst call, per the report, and emphasized the idea of bundling in the space.

“We see a great opportunity in bundles… We’re excited to hear about the Disney+, Hulu, Max bundle. In an odd way it is sort of recreating family cable and putting all the entertainment products together,” Dolan said.

 

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