AMC Networks delivered a mixed Q2 2025, with modest gains in streaming and content licensing partially offsetting continued erosion in its linear TV business. While overall revenue fell 4% year-over-year to $600 million, the company beat analyst expectations by $17.7 million — a rare win during a quarter dominated by tough headwinds.
Streaming Revenue Up, but Sub Growth Slows
Streaming revenue rose 12% to $169 million, primarily driven by price increases across AMC’s portfolio of niche streamers — AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, IFC Films Unlimited, and HIDIVE. Subscriber growth, however, was modest. The company ended the quarter with 10.4 million paid streaming subscribers, up just 2% from Q1’s recalibrated 10.2 million figure. That new count excludes bundled linear packages, focusing solely on paying streaming-only customers.
AMC CFO Patrick O’Connell pointed to strong engagement on Acorn TV and HIDIVE as tailwinds, while also acknowledging that “subscribers could always do better.”
Linear Business Still a Drag
The pain from linear continues to bite. U.S. advertising revenue dropped 18% to $123 million, reflecting lower ratings and softer marketplace pricing. Affiliate revenue also fell 12%, dragged down by both subscriber churn and rate adjustments. Domestic operations revenue declined 2% to $527 million, and adjusted operating income in the segment dropped 19%.
International operations fared worse. Revenues there declined 16% to $76 million, with ad sales down 31%. However, excluding a one-time $13.4 million accounting adjustment from last year, ad sales would have seen a 2% bump — one of the few bright spots in the linear landscape.
Content Licensing and Free Cash Flow Help Balance the Scales
Content licensing revenues surged 26% to $84 million, bolstered by the sale of AMC’s music catalog and executive producer fees related to Silo on Apple TV+. The company also saw a 25% increase in digital ad commitments following its 2025 upfronts — signaling that at least some advertisers are shifting budgets toward AMC’s digital inventory.
Perhaps most notably, AMC raised its free cash flow guidance for the year to $250 million. Q2 free cash flow came in at $96 million, up slightly from the prior year.
Leaning Into FAST and Gen AI
AMC continues expanding in the FAST space, launching 11 channels on TCLtv+ during the quarter. Its participation in Amazon Prime Video’s new streaming bundle — alongside services like Discovery+, Starz, and MGM+ — also points to bundling as a future growth lever.
On the content side, Acorn TV’s “Murder Mystery May” drove record viewership and subscriber acquisition. Meanwhile, Clown in a Cornfield delivered the biggest opening in company history on Shudder.
Executives also outlined how AMC is embracing generative AI through its partnership with Runway. CEO Kristin Dolan and AMC Studios president Dan McDermott emphasized the tech’s utility in pre-vis and post-production, citing up to 80% cost savings on VFX without displacing any unionized roles.
“Runway is just facilitation for us… a tool that allows us to ideate,” Dolan said. “We’re literally just giving [our creatives] tools that will enhance their ability to do the great work they do.”
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