AMC Networks advertising & content licensing revenues dive, but streaming rebounds

The Walking Dead: Daryl Dixon (Source: AMC)

AMC Networks has seen its advertising revenue plunge 18% in Q3, with the US-based operator blaming the slump on “anticipated linear ratings declines” and fewer original shows.

Revenue across the group, which is behind series such as The Walking Dead: Daryl Dixon and Irish thriller Harry Wild, was down 7% to $637m while ad-related revenue stood at $147m in Q3.

Streaming helped to offset some of the declines, with its portfolio of services including Acorn TV and AMC+ taking overall revenue up 9% to $142m, while subscribers rose 100,000 – or 4% – year-on-year to touch 11.1 million.

AMC has had a tumultuous 12 months, with around a fifth of its US workforce cut last year as part of a plan around “significant cutbacks in operations” and the exit of former CEO Christina Spade after just three months in the role.

Harry Wild

Kristin Dolan, board member and wife of company owner James Dolan, was subsequently named CEO in February, while the company has also cut back on originals.

AMC’s international outlook

The company’soperations outside of the US provided a mixed picture, with international and other revenues decreasing 2% from the prior year to $98m.

Content licensing (and other revenues) decreased 24% to $22m, which the company blamed on lower production volumes at its 25/7 Media unit.

These losses were “partially offset” by higher non-US subscription revenues that rose 6% to $56m although this was “primarily due” to currency changes.

AMC said that ad revenues on the international front had increased 11% to $19m, again partly because of exchange rates but also thanks to “digital and advanced advertising growth in the UK”.

Dolan said that the focus for AMC during “this period of experimentation and change in our industry” would be on “high-quality programming, strong partnerships and profitability.”

She pointed to the introduction of an ad-supported version of AMC+ and a content licensing partnership with Warner Bros. Discovery streamer Max in the US as highlights in the quarter.

Dolan added that the company would “remain focused on responsible content investment and monetisation across a wide array of distribution platforms and licensing opportunities.”