AMC Networks has bought out its partner for the cable channel BBC America, the company announced on Friday.
The entertainment giant spent $49 million in cash to acquire full control of the channel from BBC Studios, which held a 50.1 percent stake in the network.
The channel was originally launched in 1998 by the commercial arm of the BBC, then known as BBC Worldwide, which allowed the British public service broadcaster to present its comedies and dramas to a stateside audience while allowing it to tap into various advertising opportunities.
BBC America was originally distributed by Discovery Communications, but the partnership ended in 2014 when AMC Networks acquired a minority stake in the channel. It continued to operate under a licensing agreement with BBC Studios, during which it replaced a considerable amount of British programming with re-runs of “Star Trek,” “Law & Order,” “Bones” and Hollywood films.
That said, the partnership between BBC and AMC churned out a handful of hits like “Orphan Black” and “Killing Eve,” which ran first on BBC America before moving to AMC Plus and other platforms. The channel also offered rebroadcasts of “Doctor Who” until the show moved to Disney Plus.
AMC Networks has yet to detail plans for the channel, and executives didn’t say whether they will maintain the BBC branding over the long term.
“We still maintain a close commercial relationship with BBC Studios to ensure the brand and programming remain top tier,” Patrick O’Connell, the Chief Financial Officer at AMC Networks, said on a conference call with investors. “We will continue to fully consolidate BBC America, as we did prior to the transaction.”
Executives at BBC Studios seem more optimistic that at least some of their programming will remain on BBC America in the years to come.
“We are excited to continue our commercial partnership with AMC Networks, ensuring the continued growth and success of the BBC America brand and its programming,” Rebecca Glashow, the CEO of BBC Studios’ global media and streaming business, said in a statement.
The acquisition of BBC America comes at a time when AMC’s cable television business continues to be impacted by TV fans ditching cable and satellite for cheaper, streaming-only options. That higher churn — the industry calls it “cord-cutting” — has chipped away at distribution and advertising revenue.
On Friday, AMC Networks said its third quarter (Q3) cable distribution revenue was $316 million, down 5 percent on a year-over basis. Cable advertising revenue dropped 10 percent to $133 million.
In addition to BBC America, AMC Networks owns the flagship AMC channel, as well as IFC, Sundance Now and We TV. The company also has the domestic distribution rights to BBC News, which it offers as a free, ad-supported streaming TV channel.
