For the most part, AMC Networks is done being viewed as a cable television network brand.
The company has charted a course where the AMC Networks brand name is synonymous with quality entertainment — scripted dramas and thrillers that can reach consumers beyond its flagship AMC cable network, on whatever platform they choose.
The transformation is not only a next-generation evolution of a famed TV brand — it is necessary to ensure the survival of AMC Networks as the cable and satellite industry suffers from higher churn that eats into once-lucrative distribution fees for broadcasters.
In its earnings release for the fourth quarter (Q4) of the year, AMC Networks said it took a total impairment charge of nearly $400 million during 2024, largely associated with its linear cable networks. That includes a $269 million hit based on the de-valuation of its cable networks business, which includes BBC America — now fully owned by AMC — as well as IFC, Shudder, Sundance TV and We TV.
For the year, AMC Networks revenue fell 6 percent to just north of $2.4 billion. But, as with most entertainment companies these days, streaming is a bigger part of their business, with streaming-related revenue increasing 7 percent to $603 million.
In some ways, the health of AMC Networks’ streaming business is tied to the cable and satellite industry. Like other companies, the network has effectuated new distribution deals with pay TV operators that allow customers who receive AMC Networks cable channels to also receive the ad-supported version of its cornerstone streaming service, AMC Plus, without anything extra.
The move is a value-add for the pay TV industry, allowing them to market free access to a streaming service that would otherwise cost users around $7 per month if they purchased it on their own. For AMC Networks, it allows the company to position the ad-supported tier of its service as having greater reach, a factor that is likely to attract more advertisers.
The number of direct-to-consumer streaming subscribers increased 8 percent to 12.4 million by the end of Q4, though the figure doesn’t include pay TV customers of services like Philo and Charter’s Spectrum TV who receive access to AMC Plus as part of their subscription.
AMC Networks is also focused on building out its portfolio of free, ad-supported streaming TV (FAST) channels, where it repurposes some of its content library to reach frugal consumers. Channels like AMC en Español and Allblk Gems also serve as a marketing opportunity for AMC Plus, and gives AMC Networks even more advertising inventory to offer brands and marketers.
That said, the company is still working to tap into the full potential of connected TV advertising. Revenue related to advertising dropped 11 percent to $561 million by the end of Q4, with the company citing “linear ratings declines and a challenging entertainment advertising marketplace,” which was only partially offset by its streaming products and services.
Streaming is just one part of the evolution. The other involves developing content for other players in the space. The AMC Networks-produced sci-fi thriller “Silo” proved to be a hit for Apple TV Plus in its first season, and the company quickly signed a deal with the tech giant to produce a second series, which began streaming late last year.
The delivery of Silo to Apple TV was logged in Q3, and few other orders came in, with AMC Networks posting a 19 percent year-over decrease in content licensing revenue, ending Q4 with $277 million attributed to that part of the business.
But AMC Networks executives want to make one thing clear: The company is open for business, and they are laser-focused on producing top-notch series for anyone willing to buy them, not just their own services.
