AMC Networks has a relatively small streaming subscriber base but it expects the streaming strategy to still have a huge impact on the business.
The company didn’t provide a specific subscriber count update but reiterated that it’s on track to reach 9 million total subscribers by the end of the year across AMC+, Shudder, Acorn TV, Sundance Now and ALLBLK, and 20 million to 25 million total paid streaming subscribers by 2025.
New interim CEO Matt Blank, who stepped in as chief executive after Josh Sapan recently transitioned to an executive vice president role, offered up some of his initial impressions of AMC’s streaming strategy during his first earnings call with the company. He said the projected subscriber totals for AMC’s streaming services may seem small compared to the customer bases that larger services like Netflix and Disney+ have built but said it “will be absolutely transformational for us.”
“Twenty to 25 million subscribers will make streaming potentially the biggest contributor to our business. And these goals are very attainable. With our targeted strategy, we don’t compete with the other streamers and this puts us in a very solid, advantageous position as we navigate a streaming future,” said Blank.
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He added praise for AMC’s IP and international content licensing efforts, which are being transitioned to the company’s streaming platforms revenue as efforts expand outside of the U.S. and claimed that AMC Networks has an “enhanced content pipeline” for 2022.
AMC Networks reported streaming revenues growth of 83% year over year and said the customer retention rates improved at all of its streaming services. However, the company’s overall subscription revenues only increased 14% after streaming growth was partially offset by a decrease in linear affiliate revenues and declines in pay TV subscribers.
The company’s consolidated revenues grew nearly 24% to approximately $811 million and total adjusted operating income rose 21% to about $4225 million during the quarter.