Kristin Dolan signals library strategy as ad revenue declines
Summary
– AMC is negotiating to regain streaming rights to The Walking Dead
– U.S. ad revenue fell 10% while affiliate revenue dropped 13% in Q4
– Streaming revenue rose 17% and is now the company’s largest segment
AMC Networks is adjusting its strategy to strengthen its position in a competitive television and streaming landscape.
During the fourth quarter, U.S. advertising revenue declined 10 percent to $124.8 million. Traditional affiliate revenue also fell 13 percent to $139 million. Combined subscription revenue, including streaming and affiliate fees, was flat at $314.9 million. Overall quarterly revenue slipped 1 percent to $515.1 million.
Streaming provided a brighter spot. Revenue in that segment climbed 17 percent to $177 million, making it the largest component of AMC’s business. However, domestic streaming subscribers remained steady at 10.4 million, showing limited growth in audience size.
CEO Kristin Dolan outlined a plan to strengthen the company’s intellectual property portfolio. A key part of that strategy involves negotiating to regain the streaming rights to The Walking Dead, which is currently licensed exclusively to Netflix.
Dolan emphasized the growing importance of studio assets and recognizable franchises amid industry consolidation. Bringing The Walking Dead library back under AMC’s direct streaming umbrella could provide a significant boost to its platforms.
Content licensing revenue rose 12 percent to $75.3 million for the quarter. Analysts estimate domestic content licensing could generate around $260 million this year, with potential upside if The Walking Dead returns to AMC’s streaming services.
For the full year, AMC Networks reported revenue of $2.3 billion, down 4.5 percent. The company posted $133.3 million in operating income, reversing a loss from the previous year.
AMC’s portfolio includes cable networks AMC, IFC, Sundance TV, and WE TV, as well as streaming services AMC+, Acorn TV, HIDIVE, ALLBLK, and Shudder. Industry observers note that while streaming offers growth opportunities, it also brings increased pressure to deliver measurable advertising performance.
The company’s path forward appears focused on leveraging its strongest franchise to regain momentum in a shifting media environment.
