AMC Networks Eyes Growth in ‘Targeted’ SVOD Services
August 4, 2020
AMC Networks’ majority acquisition of RLJ Entertainment continues to pay dividends as the media company expands its subscription streaming video-on-demand profile in an over-the-top ecosystem.
While the media company didn’t disclose new subscriber data, CEO Josh Sapan said SVOD and ad-supported VOD distribution continued to drive AMC’s second-quarter (ended June 30) “International and Other” business objectives.
“We have made particular progress during this COVID-19 period with strong growth across our targeted SVOD services — Acorn TV, Shudder, Sundance Now and UMC — as consumers increasingly subscribe to both our targeted offerings in addition to general entertainment SVOD services,” Sapan said in a statement.
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During the quarter, AMC launched new SVOD bundles AMC+ and WE tv+. The company acquired exclusive streaming rights to “Mad Men.” The company furthered its AVOD strategy with launches on ViacomCBS’s Pluto TV and Dish Networks’ Sling Free services.
Second-quarter revenue primarily reflected an increase at AMC Networks SVOD business, more than offset by a decrease at Levity Entertainment and, to a lesser extent, a decrease at the company’s international programming networks.
Citing ongoing fiscal impacts of the coronavirus pandemic, AMC reported a $112 million operating loss at the “International and Other” segment. The increased loss was primarily related to $130 million in impairment charges due to the pandemic. Segment revenue for the quarter decreased 10.3% to $161 million.