AMC Networks just dropped its Q4 earnings, and let’s just say the numbers tell a story of a company trying to rewrite its own script. The big headline? A near $400 million impairment charge in 2024, largely due to the declining value of its linear cable networks. You know, the same ones that once made AMC a must-have on your cable package but now feel more like relics of a bygone era.
The biggest chunk of that hit—$269 million—comes from the devaluation of the company’s cable networks, including BBC America (now fully owned by AMCN), IFC, Shudder, Sundance TV, and We TV. That’s the financial equivalent of AMC Networks admitting, “Yeah, we know these channels aren’t what they used to be.”
The Streaming Playbook: Bundle It or Die
While the cable business keeps sinking, AMC Networks is doing what every media company without a theme park does—betting big on streaming. Streaming revenue grew 7% to $603 million, and direct-to-consumer subscribers climbed 8% to 12.4 million. Not bad, right?
But here’s the catch: The growth isn’t purely organic. AMC Networks has been bundling its ad-supported version of AMC+ with cable and satellite subscriptions, essentially giving it away for “free” as a way to add value to traditional pay-TV packages. A win-win? Maybe. It makes AMC+ look bigger for advertisers while cable providers get another reason to keep subscribers from cutting the cord. But the real question remains—are these viewers actually watching, or are they just collecting another login they’ll never use?
FAST and Furious
AMC Networks is also doubling down on FAST channels, recycling its content library to capture budget-conscious viewers. The company has launched niche offerings like AMC en Español and Allblk Gems, both designed to push audiences toward its paid services while stacking up ad inventory.
And yet, despite all these efforts, advertising revenue still fell 11% to $561 million, thanks to—you guessed it—declining linear TV ratings and a tough ad market. CTV advertising is supposed to be the great hope, but AMC Networks still hasn’t cracked the code in a way that offsets its traditional losses.
The Content Hustle: Playing for the Other Team
With its own platforms struggling to scale fast enough, AMC Networks is leaning into another survival strategy—selling premium content to bigger fish. Case in point: Silo, the sci-fi hit that AMC Networks produced for Apple TV+. After a successful first season, AMC quickly signed on to make a second, proving that licensing out high-quality shows may be a smarter move than trying to hoard them for itself.
But licensing revenue still took a 19% hit in Q4, dropping to $277 million. That’s likely because big streaming players aren’t as eager to shell out for third-party content when they’re cutting back on spending themselves.
The Take
AMC Networks’ latest earnings make one thing painfully clear: It’s stuck between two business models—one that’s fading (linear TV) and one that’s growing but still not strong enough to carry the company (streaming).
Bundling AMC+ with cable packages might buy some time, but eventually, the company will need to figure out how to turn streaming into a truly profitable business, not just a side hustle. And with advertising revenue still shaky and content licensing slowing down, the window for reinvention is closing fast.
AMC Networks’ future depends on whether it can make streaming work on its own terms—before the old business collapses entirely.
