AMC Networks Reports Q3 Subscriber Rebound Amid Ad Revenue Challenges

Streaming services recover with 100,000 new subscribers, but U.S. ad sales decline by 18%.

AMC Networks, recognized for its streaming platforms like Acorn TV and AMC+, witnessed a positive turn in its subscriber base during Q3 2023. Adding 100,000 subscribers across its streaming services, the company showed resilience after facing declines in the previous two quarters.

As of September 30, streaming subscribers reached 11.1 million, indicating a modest 1% increase from the end of Q2. This recovery follows a challenging period, marked by a loss of 300,000 subscribers in Q1 and a continued decline to 11 million by the end of Q2.

Despite this subscriber rebound, AMC Networks faced an 18% decline in U.S. ad sales, contributing to an overall 7% drop in revenue to $637 million. Domestic operations revenue fell by 8%, with content licensing seeing a 7% increase and subscription revenue down by 5%. Streaming revenue, however, showed promise with a 9% rise.

In the international segment, including AMC Networks International and 25/7 Media, revenue fell by 2%. Distribution and “other” revenues experienced a 4% decline, while ad sales increased by 11%.

CEO Kristin Dolan remains cautiously optimistic, emphasizing the company’s commitment to high-quality programming, strong partnerships, and profitability. Dolan highlighted strategic moves such as the introduction of an ad-supported version of AMC+ and the launch of programmatic buying on linear networks.

The stock closed at $13.18 per share, reflecting market responses to AMC Networks’ challenges. The company’s executives, including Dolan, are set to discuss the quarterly results in detail during a conference call at 8:30 a.m. ET.

Source: Envanto Elements


INSIDER TAKE:

AMC Networks grapples with declines in ad and affiliate revenue, but the positive uptick in streaming subscribers offers a potential path to recovery. The company’s strategic initiatives, including partnerships and innovative offerings, will likely play a crucial role in navigating the evolving media landscape.

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