AMC Networks, a cable network and streaming company that operates companies including AMC, AMC+, IFC, BBC America, Acorn TV and Shudder, reported slightly more U.S. ad revenue in the first quarter and said there was an increase of your streaming subscribers recently. March 9.5 million More than 9.0 million at the end of 2021.
Earlier this year, the company predicted it would add around 400,000 streaming subscribers in the first quarter of 2022, when it began offering quarterly guidance on its streaming business.
Quarterly U.S. ad revenue rose 1 percent to $201 million “due to higher pricing and digital growth, offset in part by lower linear rankings,” the company said. The last quarter was among the company’s top content in the first quarter kill eve.
AMC’s interim CEO Matt Blanc told analysts during a morning call that his company had no plans to launch an ad-supported streaming service after Netflix said it planned to subscribe to cheaper ad-supported subscription plans.
“It’s funny when you hear that another great player has some problems in his underdevelopment, suddenly the announcement will solve all the problems. “We don’t think so, but, you know, we’re watching the market,” Blank said.
His comments came after the AMC boss requested the streaming delay after Netflix reported a net loss of 200,000 subscribers and saw its share price fall. “Anyone trying to start a streaming business cannot predict part of the flow,” warned Blank.
He argued that unlike competing streamers, which have broad consumer appeal, AMC will continue its differentiated strategy, offering gender-driven digital platforms aimed at different fans. “Our goal is to offer everything to someone. And the strategy works,” said Blank.
Like its peers, AMC has accelerated its transition to streaming, but has focused on different niches and genres, such as the horror service Shudder, declaring them less capital intensive than the broad entertainment streaming services. AMC’s streamer portfolio also includes the premium bundle AMC+, Black Series and ALLBLK Movie Destinations, formerly known as UMC, Art House-oriented Sundance Now, and IFC Films Unlimited movie service.
“Customers come to our services because of the depth of content and the general community of like-minded fans and our curated, personalized approach to content,” Blank told analysts. He also discussed the launch of AMC’s premium streaming package, AMC+, through distribution partners in the UK, Australia and India such as Apple TV and Amazon Prime Video Channels, and said new channels will be added this year.
“There is huge global potential for us,” he said. AMC said ahead of market opening that its total first-quarter revenue increased 3% to more than $712 million. Operating profit also increased 3% to nearly $175 million, but adjusted operating profit was down more than 11% to $211 million. The company cited “increased investments in programming and marketing to help steadily increase revenue streams” as the main reason and unfavorable impact of foreign currency conversion on its international business.
The company’s domestic revenue increased 6% in the first quarter to $606 million. Distribution and other revenue increased 8% to $405 million, more than advertising revenue. Subscription revenue in the distribution segment increased by 8% “due to the increase in streaming revenue due to the increase in subscribers to our streaming services, partially offset by the low single-digit decline in subsidiary revenue. linear with the reduction in the world of linear subscribers”. Content license revenue in the same segment increased by 9% “due to a greater number of original shows than in the previous year”.
Meanwhile, first-quarter revenue from the international division and other divisions of the company fell 9% to $110 million from a year earlier. Distribution and other revenues were down 12%, “primarily due to 25/7 media production time as well as the adverse effects of foreign currency conversion.” However, advertising revenue increased by 4% “due to higher prices, partially offset by the unfavorable impact of foreign currency conversion”.
Wall Street has taken a different approach to streaming compared to industry giants, who have recently faced questions about the cost of their growing streaming content and the long-term profitability of streaming. “The broadcast business is a less speculative, less expensive and more sustainable model for the company than its generally entertaining peers,” wrote Michael Morris, a late Guggenheim analyst who has a “neutral” rating on AMC Networks stock. . February report. “Expansion continues with positive operating business.”
AMC Networks named Blanc, former CEO of Showtime Networks, as its interim CEO in late August, choosing him from company veteran Josh Sapan, who took over as vice president.
Source: Hollywood Reporter
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