AMC Networks Q3 2023 Results: Ad Revenue Falls, Streaming Gains
AMC Networks revealed a mixed Q3 2023 performance, with U.S. advertising sales dropping 17% year-over-year while its streaming subscriber base grew by 2% to 10.4 million. The results highlight the ongoing struggle for legacy media companies balancing declining cable revenue with digital growth.
Why AMC’s U.S. Ad Sales Dropped 17%
AMC Networks, which owns AMC, IFC, and SundanceTV, reported U.S. ad revenue of $162 million—down from $196 million in Q3 2022. The decline reflects broader industry trends:
- Advertisers shifting budgets from linear TV to streaming and digital platforms
- Lower cable viewership due to cord-cutting
- Economic uncertainty leading to reduced ad spending
CEO Kristin Dolan acknowledged the challenge:
“The advertising marketplace remains volatile, particularly for linear networks, as marketers prioritize digital and streaming.”
The company’s international ad sales also fell 8%, reinforcing the global media downturn.
Streaming Growth: AMC+ and Niche Platforms Add 200K Subscribers
Despite ad struggles, AMC’s streaming business grew 2% in Q3, adding 200,000 subscribers for a total of 10.4 million. Key drivers include:
- AMC+ (including ad-supported tier)
- Niche platforms like Shudder, Acorn TV, and Sundance Now
- Hit originals (The Walking Dead, Interview with the Vampire)
Dolan emphasized the “targeted, fan-driven” strategy, but profitability remains a challenge due to high content costs.
Can AMC Offset Ad Declines? 3 Key Strategies
To combat shrinking ad revenue, AMC is exploring:
1. FAST Channel Expansion – Leveraging its library on free ad-supported platforms (e.g., Pluto TV, Tubi)
2. Content Licensing – Monetizing shows through third-party deals
3. Global Streaming Growth – Expanding in Europe and Latin America
Investor Reaction & Future Outlook
AMC’s stock saw moderate volatility post-earnings, with analysts divided:
- Positive: Steady streaming growth shows demand for niche content
- Concerns: Profitability hurdles and stiff competition (Netflix, Disney+, Max)
Media analyst Rich Greenfield noted:
“AMC’s subscriber growth is encouraging, but monetizing streaming while managing linear declines won’t be easy.”
The Bottom Line: AMC’s Pivotal Transition
AMC Networks exemplifies the media industry’s shift—streaming is rising, but not fast enough to replace dying cable profits. Success hinges on:
- Scaling streaming profitability
- Diversifying revenue (FAST, licensing, international)
- Maintaining niche appeal in a crowded market
The transition won’t be easy, but adaptability will determine long-term survival.
