AMC Networks reported a modest increase in streaming subscribers for Q3 2024, growing from 11.6 million to 11.8 million. This represents an addition of around 200,000 subscribers. The company’s streaming services, including AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, continue to contribute to the overall subscriber base, alongside their traditional linear networks such as AMC, BBC America, IFC, SundanceTV, WE TV, and IFC Films. Despite some challenges in the broader media landscape, AMC Networks has seen its streaming revenue grow by 7%, reaching $152 million, driven by year-over-year subscriber growth and price increases. However, overall, the total subscription revenue dropped by 5%, reflecting a decline in linear TV subscriptions.
Advertising Revenue Trends and Strategic Shifts
AMC Networks experienced a 10% decline in U.S. advertising revenue for Q3, falling to $133 million. This drop was attributed to a combination of weaker linear ratings and a challenging advertising market. Despite this, the company reported growth in its digital and advanced advertising offerings. Advertising revenue from its international markets showed a more positive trend, increasing by 16% to $22 million, fueled by new streaming launches in the UK and growth in Central and Northern Europe.
AMC Networks continues to adapt its advertising strategy by focusing on targeting a data-led audience and strengthening partnerships with major companies like Netflix, Amazon, and Charter. CEO Kristin Dolan noted that these efforts are helping AMC Networks remain competitive as digital-first ad purchases become more prevalent, with linear TV advertising shifting to digital and hybrid models.
Content Licensing, Partnerships, and Long-Term Growth
AMC Networks’ overall performance in Q3 highlighted its focus on growing revenue from multiple streams. Content licensing revenue saw a notable increase of 31%, reaching $81 million, driven by deals such as the new Netflix licensing agreement. However, the company’s international revenues fell by 24%, primarily due to the divestiture of 25/7 Media, which reduced content licensing and other international revenue streams. The company’s free cash flow for the year-to-date stands at $293 million, putting it on track to meet its two-year target of $500 million in cumulative free cash flow.
AMC Networks is also evolving its approach to content distribution. The company has placed a greater emphasis on non-exclusive content deals, allowing for monetization across multiple platforms, both owned and partner-operated. Shows like The Walking Dead: Daryl Dixon and Anne Rice’s Mayfair Witches have succeeded on AMC+ following their availability on Netflix, driving new subscriber acquisitions.
As part of its evolving strategy, AMC Networks is also expanding into FAST (Free Ad-Supported Streaming Television) channels and launching ad-supported versions of its targeted streaming services. These moves aim to capture a broader audience by offering flexible ad-supported options while navigating the shift from linear to digital-first viewing habits.
Strategic Expansion: Full Control of BBC America
In a significant strategic move, AMC Networks announced the completion of its acquisition of the remaining 50.1% stake in BBC America from BBC Studios. The company now fully owns and operates BBC America, following a cash transaction of $42 million. This acquisition strengthens AMC Networks’ programming portfolio, giving them complete operational control over the brand and enabling further consolidation under its corporate structure. CEO Kristin Dolan emphasized that this acquisition is part of a broader strategy focused on content control and expanding AMC’s programming capabilities across its networks.
