November 2, 2020
AMC Networks Nov. 2 said it expects 5 million to 5.5 million paid subscribers by the end of 2020 for its portfolio of streaming services, which include AMC+, Acorn TV, Shudder, Sundance Now, UMC and IFC Films Unlimited. Shudder, which features horror/thriller based content, just topped one million subs. The company also expanded distribution of AMC+ with launches on Amazon Prime and Apple TV platforms.
“AMC Networks is fast becoming the global leader in SVOD services for targeted audiences,” CEO Josh Sapan said in a statement.
Indeed, since acquiring Acorn TV and UMC as part of its $65 million acquisition of home entertainment distributor RLJ Entertainment in 2018, AMC has sought to market SVOD services focusing on specific niches of entertainment. Acorn targets fans of British-themed TV shows; UMC offers movies and series for African Americans, while IFC and Sundance target independent films and series.
SVOD helped AMC’s “international and other” business segment increase third-quarter (ended Sept. 30) revenue 9% to $199 million, from $182.5 million in the previous-year period. Operating income increased $23 million to $11.2 million, from a loss of $11.5 million last year. Adjusted operating income increased $14 million to $28 million, from $13.5 million.
Overall, AMC saw total Q3 revenue decrease 9%, or $65 million, to $654 million compared with the previous-year period. The decline reflected a decrease of 17.3% at “national networks” operating segment, offset by the previously mentioned “international and other” revenue gain. Operating income topped $139 million, a decrease of 17.2%, or $29 million, versus the prior-year period. The decrease reflected a decrease of 28.8% at “national networks” and an increase of $23 million in operating income at “international and other.”
National networks includes AMC, WE tv, BBC America, IFC and SundanceTV; and AMC Studios, the company’s production business.
On Oct. 21, AMC announced the final results of the tender “Dutch Auction” offer and repurchased approximately 10.8 million shares of common stock for $251 million.