AMC Networks Adds 100,000 Streaming Subs in Q3


AMC Networks has reported its quarterly results, which revealed streaming subscriber growth after two quarters of declining subs.

CEO Kristin Dolan said: “During this period of experimentation and change in our industry, we continue to execute on our plan and effectively manage the business with a focus on high-quality programming, strong partnerships and profitability. In addition to introducing an ad-supported version of AMC+, we extended our leadership in TV advertising through the launch of programmatic buying on our linear networks, an industry first. Partnership examples included a promotional pop-up on Max and a strong presence on the new Xumo offering from Comcast and Charter. The Walking Dead: Daryl Dixon was the biggest-ever debut for AMC+, one of many programming highlights in the quarter. We are well-positioned to achieve our free cash flow goals for the year and remain focused on responsible content investment and monetization across a wide array of distribution platforms and licensing opportunities.”

Domestic operations revenues decreased 8 percent from the prior year to $541 million. Distribution and other revenues decreased 3 percent to $394 million. Content licensing revenues increased 7 percent to $62 million, with the company citing the timing and availability of deliveries in the period. Subscription revenues decreased 5 percent to $332 million, due to declines in the linear subscriber universe, partially offset by streaming revenue growth. Streaming revenues increased 9 percent to $142 million, primarily driven by year-over-year streaming subscriber growth and a continued focus on higher value subscribers. Streaming subs increased 4 percent to 11.1 million compared to the prior year period. As compared to Q2 subs, third-quarter subscribers increased 1 percent. Affiliate revenue decreased 13 percent. Advertising revenues decreased 18 percent to $147 million due to anticipated linear ratings declines, a challenging ad market and fewer original programming episodes within the quarter, partly offset by digital and advanced advertising revenue growth. Operating income decreased 13 percent to $162 million.

International and other revenues decreased 2 percent from the prior year to $98 million. Distribution and other revenues decreased 4 percent to $78 million, primarily due to lower production volumes at 25/7 Media, partially offset by higher subscription revenues at AMC Networks International. Subscription revenues increased 6 percent to $56 million. Content licensing and other revenues decreased 24 percent to $22 million, due to a reduction in the volume of productions at 25/7 Media. Advertising revenues increased 11 percent to $19 million. Operating income decreased 4 percent to $8 million.