When AMC Networks acquired a majority stake in RLJ Entertainment for $60 million, it did so primarily for the home entertainment distributor’s two SVOD services — Acorn TV and Urban Movie Channel (UMC) — and control of Agatha Christie Limited intellectual property.
AMC Feb. 26 reported that its combined SVOD portfolio, which also includes Sundance Now and horror-based Shudder, topped two million subscribers in the fourth quarter, ended Dec. 31, 2019.
“We are seeing momentum for our targeted SVOD services … as we continue to invest in strong, desirable content and valuable IP, diversify through new areas of content monetization and maximize the long-term value of our core networks and brands,” CEO Josh Sapan said in a statement.
What is AMC is also seeing are increased losses as it ups spending on SVOD.
Revenue for the “international and other” segment, which includes SVOD, increased 6.5% to $201 million, while the operating loss increased $69 million to $118 million from an operating loss of $49 million in the previous-year period.
AMC said adjusted operating income increased 75.1% to $15 million, all compared to the prior year period.
The operating loss and adjusted operating income reflected the increase in revenue as well as an increase in operating expenses. The increase in operating loss also reflected $107 million in impairment and related charges at AMC Networks International partially offset by a reduction in restructuring and other related charges.
For the full fiscal year, “international and other” revenue increased 22.7% to $734 million, operating loss increased 82.2% to a loss of $170 million, and adjusted operating income increased $31 million to $50 million, all compared to the prior year period.
Meanwhile, Agatha Christie Limited reported adjusted operating income of $2 million. For the full year, the unit recorded adjusted operating income of $6 million.