AMC Streamers Add 300,000 New Customers, But Linear Revenues Continue to Fall

The AMC family of streaming services may not have the biggest collection of subscribers out there, but it’s still growing. AMC reported its fourth quarter 2023 earnings this week, and the data reveals that its streaming services AMC+, ALLBLK, Acorn TV, HIDIVE, Shudder, and Sundance Now combined to add 300,000 subscribers during the quarter, raising its total to 11.4 million overall (AMC does not break out the subscriber totals of these streamers individually).

• AMC streaming revenues were up 4% during the quarter to $145 million.
• Advertising revenues fell by 23% due to linear rating declines and a lack of scripted programming.
• AMC holds a powerful array of franchises and could make a tempting acquisition target.

Was it a Good Quarter for AMC?

Streaming proved to be one of the few bright spots for AMC on its balance sheet last quarter. It grew streaming revenues by 4% during the quarter to $145 million, helping to partially offset an overall decline in subscription revenues as more and more customers cut the cord and leave pay TV behind.

Outside of streaming, revenues were down essentially across the board for AMC. Domestic Operations revenues fell 32% to $582 million, and content licensing revenues dipped a whopping 68% to $96 million. The continuing softness of the advertising market combined with a lack of scripted TV episodes due to the WGA and SAG-AFTRA strikes combined caused ad revenues to fall by 23% to $158 million.

One other promising sign from the report was that AMC’s total operating losses narrowed to $11 million during the quarter.

“In the fourth quarter and across 2023, we continued to see success in the areas that will drive this company forward – programming, partnerships, and profitability. I’m encouraged that this year we were able to grow streaming revenue and strengthen our subscriber base, and meaningfully grow our free cash flow,” said CEO Kristen Dolan.

What’s Next for AMC?

The Streamable’s experts continue to be a bit puzzled by AMC. Quarter after quarter, the company posts small but meaningful gains from its streaming arm; in the third quarter of 2023, for example, AMC pulled a net gain of 100,000 subscribers, and streaming revenues grew by 9%.

Meanwhile, the linear side of AMC’s business is continuing to struggle. The company says it has its eyes open for more streaming licensing deals to help boost revenues, but there has been no public talk about selling linear assets or mergers and acquisitions by other media outlets.

While Warner Bros. Discovery, Byron Allen, and Skydance Media each explore acquisitions of Paramount Global, AMC is seemingly sitting there for the taking. The company holds the rights to several successful franchises like “The Walking Dead” and “Breaking Bad,” and its highly diverse streaming portfolio could be an instant boost if a company were to acquire them all.

For now, at least, AMC will continue to inch ahead on its own. The company is continuing to grow its streaming customer base, but its linear operations are still slumping, and it feels that something has to give sooner or later in this equation of increasing streaming success and growing problems on the cable side.