During a conference call with investors, AMC Networks explained the company’s plans for attracting new subscribers to its streaming services, including a new ad-supported version of AMC+, slated to launch later this year, and continuing to extend carriage deals of its FAST channels. AMC Networks — which operates AMC+, ALLBLK, Acorn TV, HIDIVE, Sundance Now and Shudder — experienced a drop in direct-to-consumer numbers during the quarter that ended March 31. Its overall 11.5 million subscriber count decreased about 300,000 since the end of 2022 (subscriber data was not revealed for each individual service).

On a Tuesday investor call, CEO Kristin Dolan, who took the reins in late February, emphasized the company’s strength as a content creator as well as purveyor, with not only historical hits like “Madmen” to its credit, but also the dystopian series “Silo,” which debuted last week on Apple TV+. AMC Networks is majority-owned by Cablevision.

“During Q1 2023, licensing revenues jumped 69 percent to $103 million,” attributable in part to the Apple deal, according to Fierce Video.

Although that was a small bright spot on an otherwise lackluster frame, AMC says it is “past peak content investment,” though that still adds up to a $1.1 billion production budget for 2023 and “in the $1 billion area” for 2024, according to Variety.

AMC’s direct-to-consumer platforms cumulatively saw a 300,000 decline from Q4. “Streaming revenue was, however, up 29 percent year over year,” largely driven by “2022 price increases” and “streaming growth that was up 22 percent compared to the same quarter last year,” TV Technology notes. “AMC Networks’ U.S. ad sales fell 20 percent in the first quarter, but the media company still beat estimates” on revenue and earnings.

“Our overarching goal is to distribute our shows as broadly as possible, to ensure they are visible to viewers wherever and whenever they want to watch,” Dolan said on the conference call, Fierce Video writes, adding that “one way to do this is to reduce the price point for AMC+, which currently costs around $10 a month and includes streaming versions of AMC’s cable channels.”

The company says it will launch a less expensive AMC+ tier that will be ad-supported, expected for Q3. AMC already has some ad-supported streaming television (FAST) channels for some of its content,” including the “Walking Dead” catalog, as well as IFC comedy fare and reality shows from We tv.

AMC expects that by the end of this year it will get “halfway to its larger goal of having 20-25 million streaming subs in 2025,” writes Variety. The company recently renewed its distribution deal with Dish Network.

“Earlier this year, AMC extended carriage of its FAST channels, something the company says will become more common with other pay TV platforms in the future,” Fierce says, quoting Dolan’s prediction that “our entire distribution ecosystem will be ad-supported.”

Related:
AMC+ Ad-Supported Tier Will Launch Later This Year, Fierce Video, 4/18/23
AMC Networks Chair Says Content Monetization Needs Industry Sea Change, Fierce Video, 2/17/23
AMC Networks Announces Ad-Supported AMC+ Coming This October, Cord Cutters News, 5/10/23