AMC Networks Exploring Consolidation of AMC+, Shudder, Acorn TV, ALLBLK, Other Streaming Services

In a moment where even the biggest players in the world of entertainment are moving to consolidate their streaming properties, it is almost inevitable that the smaller companies would eventually look to do the same. On Wednesday, while speaking at the Gabelli Funds 15th Annual Media and Entertainment Symposium, AMC Networks’ executive vice president and chief financial officer Patrick O’Connell said that his company was looking into the possibility of some sort of “self-bundle” to bring together its myriad streaming services, something that has seemed to make sense for quite a while for the embattled company.

“We think all our brands stand alone, right? They target specific audiences. They’re designed to super-serve those audiences,” O’Connell said, according to The Wrap. “That being said, we think it probably does make sense over time to sort of self-bundle, all call.”

O’Connell’s company operates four streaming services, all of which focus on a unique entertainment niche of varying sizes. AMC+ is the direct-to-consumer (DTC) arm of the company’s cable channel, focusing on prestige TV and the brand’s legacy franchises. Shudder is AMC’s horror movie streamer, while Acorn TV brings some of the best British television to American audiences. Sundance Now — an extension of [Sundance TV] — is a home for prestige drama, international thrillers, true crime series.

AMC Networks also owns ALLBLK, which focuses exclusively on Black-centric stories and artists, as well as anime platform HIDIVE. The company also owns and operates independent film streamer IFC Films and WE tv+ a reality-focused offshoot of cable’s WE tv channel.

AMC+ is already somewhat of a bundle for the company as some content from across its stable of streamers does live on the flagship platform, but it is not all-encompassing. O’Connell said this week that there are no current plans to unify the streamers or provide a deal for customers to subscribe to multiple AMC services — a la the Disney Bundle — but, the company is currently “looking into [it] on our side.”

Consolidation has been front-and-center in the streaming world recently as nearly every major company that owns multiple services has been looking for ways to unite them. Last month, Warner Bros. Discovery essentially merged HBO Max and discovery+ into a new service Max — although discovery+ still exists as a standalone. Paramount Global is set to merge the SHOWTIME streaming service into the Paramount+ ad-free tier beginning on Tuesday, June 27, and Disney plans to provide a still undefined “one-app experience” for Disney+ and Hulu customers by the end of this year.

One thing that the consolidation of services does for companies is allow them to save money on what otherwise would be redundant back-end operations. While it might lead to a less-focused and specialized experience for consumers, it allows the company to save money by bringing overlapping teams to together. That could eventually be the deciding factor for whether or not AMC makes the move to make a move to lessen its streaming footprint.

As reported by The Wrap, O’Connell said on Wednesday that in 2022, the company’s content spend had grown to “about $1.35 billion.” While a drop in the bucket for a company like Netflix, that was significantly more than AMC had spent pre-pandemic when its content budget hovered between $950 million and $1 billion. While the general rise of costs for all goods and labor has made those totals untenable, O’Connell said that AMC is looking to bring the budget down by a few hundred million dollars in the future.

“We’ve made a commitment to take that back down to pre-pandemic levels,” he said. “It’ll be closer to $1.1 billion this year, and we’ll likely float down even further closer to the $1 billion dollar range going forward. We think that’s the right level of investment that strikes a balance between continuing to invest in existing IP and developing additional new IP.”

AMC is continuing to expand one of its most popular franchises with the premiere of “The Walking Dead: Dead City” next week, and has ordered a third series in the Anne Rice Immortal Universe that started last year with the series adaptations of “Interview with the Vampire” and “Mayfair Witches.”

The company has also announced that AMC+ will launch an ad-supported subscription tier in October in an effort to bring in more customers and increase revenue by incorporating commercials into the mix as well.

Whatever AMC Networks decides to do with its disparate platforms, there is little doubt that the future of streaming is on consolidation, not only as a way to eliminate redundant costs for companies, but also to help alleviate the bloated marketplace for consumers. It has been a tumultuous year for AMC, having gone through multiple CEOs before Kristin Dolan — the wife of company chairman James Dolan — took over earlier this year. However, if a move to bring all of the company’s streaming products under a single umbrella could help stabilize the brand, then there could still be a path toward streaming success for AMC yet.