Today, AMC Networks announced its 4th quarter 2023 earnings. For the first time in several quarters, AMC was able to add streaming subscribers, adding 300,000 to AMC+, Shudder, and other streaming services it owns. This comes as the AMC lost 100,000 streaming subscribers in the 3rd quarter and 500,000 in the 2nd quarter of 2023. Overall streaming revenues increased 13% to $566 million to end 2023 with 11.4 million subscribers.
Overall though AMC Networks is continuing to be hit by the weak ad market and saw ad revenues drop 23% in the United States. This comes as a growing number of companies struggle with ad sales continuing to drop. Net revenues where $2,712 million.
“In the fourth quarter and across 2023, we continued to see success in the areas that will drive this company forward – programming, partnerships and profitability. I’m encouraged that this year we were able to grow streaming revenue and strengthen our subscriber base, expand our consolidated AOI margin to 25%, and meaningfully grow our free cash flow. Nearly a year since joining AMC Networks as CEO, I am proud of the progress we have made in a fast-changing environment, and the new and innovative ways we are engaging with viewers and our commercial and creative partners.” Said AMC Networks Chief Executive Officer Kristin Dolan.
This comes as AMC has been looking for ways to make its streaming services profitable. To help do this, last yearAMC announced that it will be launching an ad-supported version of its streaming service AMC+. A service that it launched for $4.99 a month back in September. A move that may have helped it turn around its streaming subscriber losses.
“This is a big moment for AMC Networks and for our advertising partners because it not only creates a fully-ad supported distribution ecosystem, it also allows advertisers to buy our shows, genres, and franchises in a much more comprehensive and impactful way,” said Kim Kelleher, chief commercial officer of AMC Networks when the service launched. “With our new series content, library titles, and other targeted streaming platforms that are all bundled into AMC+, partners can move beyond individual shows and even series and choose to ‘own’ whole genres and franchises, and drive messaging to target audiences no matter what they are watching or where. We’ve never been able to offer this level of sweeping yet highly focused reach before in such an effective and comprehensive way.”