AMC Networks Reaches 10.4 Million Streaming Subscribers Despite Linear Challenges

AMC Networks had a solid second quarter with a healthy increase in streaming revenue, hitting $169 million, up 12 percent from the previous year. This boost was mainly due to price increases. Domestically, the number of streaming subscribers also grew to 10.4 million, up from 10.2 million in the previous quarter. The company recently changed how it calculates streaming subscribers, focusing only on those who pay for one of their services like AMC+, Acorn TV, Shudder, and more, rather than including those who get access through a bundle that includes linear programming.

The company anticipates streaming revenue will be its largest revenue source this year, expecting quarterly growth in streaming revenue to pick up as the year goes on, with a projected growth rate in the low to mid-teens for the second quarter. Recent hits on Acorn, which offers British programming, and HIDIVE, an anime service, have been key to this success.

On the flip side, U.S. advertising revenues dropped by 18 percent to $123 million due to declines in linear ratings. However, content licensing revenues rose by 26 percent to $84 million, thanks in part to the sale of AMC Networks’ music catalog and executive producer fees from Apple TV+’s Silo, with additional content deals on the horizon. The company is currently in advanced talks with Netflix for even more content opportunities.