AMC Networks See Continued Revenue Declines, But Streamers Add Customers
AMC Networks See Continued Revenue Declines, But Streamers Add Customers
Altogether, AMC’s streaming services grew by 5% year-over-year, but there weren’t many other bright spots in the company’s earnings report.
Earnings report season can be a blessing or a curse, depending on what those reports show. AMC released its third quarter earnings report on Friday, and executives may have a few things to sweat over the weekend given the results. AMC was able to add subscribers to its various streaming services including AMC+, ALLBLK, Acorn TV, HIDIVE, Shudder, and Sundance Now, but the rest of the report is far less encouraging.
Key Details:
- AMC streamers now claim 11.8 million customers, a 5% increase year-over-year.
- Streaming revenues rose 7%, as overall revenue fell by 6%.
- AMC’s licensing deal with Netflix and its new distribution agreement with Charter Communications were highlights of the quarter.
AMC+ and its fellow streaming services grew to 11.8 million subscribers during the quarter, a 5% increase over the same quarter in 2023. The last time The Streamable checked in with AMC streamers in February, it had 11.4 million streaming customers spread across its various streamers. AMC does not break out its services’ results separately.
The company’s streaming segment saw revenue increase by 7% to $152 million during the quarter. That rise was not enough to offset losses on the linear side, however; overall, subscription revenues dropped by 5% to $316 million thanks to pay-TV declines from cord-cutting.
Net revenues for AMC Networks fell to $599.6 million, a 6% decrease year-over-year. Operating income and adjusted operating income were both down by more than 20%, adding up to a highly disappointing quarter financially for the service.
The other bright spot for AMC outside of streaming was its licensing revenues. Those rose by 31% YoY, reaching $81 million. That jump was aided by a new licensing deal between AMC and Netflix, which saw 15 AMC titles begin streaming on Netflix over the summer.
AMC also agreed to a new carriage deal with Charter Communications during the quarter, one that includes free access to AMC+ for Spectrum TV customers. That deal could help boost the subscriber total of the streamer in quarters to come.
AMC+
AMC+ is a premium subscription streaming bundle owned by AMC Networks. It offers curated access to award-winning originals, indie films, and prestige television. Launched in June 2020, the service combines content from AMC with flagship brands such as BBC America, IFC, Sundance TV, Shudder, Sundance Now, and IFC Films Unlimited, delivering a rich library of exclusive programming and early episode access.