AMC Networks Reports Steep 17% Drop in Q3 Ad Revenue as Streaming Subscriptions Grow

AMC Networks posted third-quarter financial results. The company saw a sharp decline in advertising revenue. This happened despite growth in its streaming business.

The earnings reveal the ongoing struggle for linear television. According to Reuters, the broader ad market remains challenging. AMC’s results highlight the industry’s pivot toward direct-to-consumer streaming models.

Streaming Revenue Rises to Offset Linear TV Weakness

U.S. advertising revenue fell 17 percent to $110 million. The drop was driven by lower linear TV ratings. Softer pricing in the ad marketplace also contributed.

U.S. subscription revenue held steady at $316 million. Growth in streaming entirely offset declines from traditional cable affiliates. Streaming revenue itself jumped 14 percent to $174 million.

The company ended September with 10.4 million streaming subscribers. This marks an increase from 10.2 million a year earlier. CEO Kristin Dolan stated streaming will be the largest revenue driver this year.

A Strategic Pivot Toward a Modern Media Business

Leadership emphasized a strategic shift. The company is building a nimble, independent media operation. This structure is designed for today’s complex environment.

On an analyst call, CFO Patrick O’Connell discussed advertising challenges. He pointed to strength in the company’s upfront negotiations and programming. AMC is also expanding its ad-supported streaming (FAST/AVOD) channels.

The company has 33 free ad-supported TV channels across 22 platforms. These channels act as a funnel for its subscription services. The goal is to let audiences sample shows and convert to paying subscribers.

The latest earnings underscore AMC Networks’ decisive transition. The future hinges on streaming subscriber growth countering persistent linear TV ad declines. This quarter’s results define the path for a post-cable media landscape.

Info at your fingertips

Q1: Why did AMC’s advertising revenue fall so much?

Advertising revenue dropped 17% due to lower ratings on traditional cable channels. A softer overall pricing environment for TV ads also contributed significantly to the decline.

Q2: How many streaming subscribers does AMC have now?

AMC Networks reported 10.4 million streaming subscribers as of September 30. This is up from 10.2 million in the same quarter last year.

Q3: Which streaming services does AMC Networks operate?

The company operates several niche streaming services. These include the flagship AMC+, Acorn TV for British content, and the horror-focused Shudder.

Q4: What is AMC’s strategy to grow advertising now?

The company is expanding its free, ad-supported television (FAST) channels. It sees these as a way for new viewers to discover content and potentially subscribe to its paid services.

Q5: Did any specific shows perform well this quarter?

The quarter featured new seasons of popular series. This included “The Walking Dead: Daryl Dixon” on AMC and “The Madame Blanc Mysteries” on Acorn TV.