These left-wing Hollywood weekly reports have a amazing thread running through them. They all deliver good numbers ( subscriber increases, etc. ), but the property also drops. Next year, it was the Disney Grooming Syndicate. AMC is the topic this year.
During the first quarter of 2024, AMC enjoyed a two percent jump in streaming subscribers ( 300, 000 adds ) and currently sits at 11.5 million. Earnings for streaming increased by 3 % to$ 145 million from the prior year. But …
AMC Networks announced its first quarter earnings on Friday, citing a “linear scores reduction and a challenging campaign market” that led to a 13 % decline in U.S. advertising revenue to$ 140 million. Streaming memberships to AMC+, however, ticked up to 11.5 million, an increase of 300, 000 clients since March 2023.
Following this noted drop, the , company’s property fell , by about 10 %. An hour and a half after AMC’s earnings call concluded, the company’s stock was listed at$ 12.35 a share. The company’s property has fallen about 34 % when budgeting for time to time.
So what’s going on?
Also, precisely what I have been predicting for over a decade.
This is yet another illustration of how these left-wing leisure companies are being destroyed by the demise of cable/satellite TV.
It’s all right here: “linear scores reduction and a hard advertising business”.
With millions and millions of cable-cutters cut the cord each quarter, fewer and fewer have access to AMC, and fewer and fewer see AMC, according to straight rankings. The result is a reduction in advertising earnings. AMC collects a dollar amount for every household that uses its network, but this is n’t included in the overall decline in carriage fees.
Here’s what Wall Street knows …
The catastrophic losses brought on by the slow demise of cable/satellite TV will never be made up for by streaming. You see, stores like as AMC made billions off of cable/satellite Television it previously earned. If AMC was part of your cable/satellite item, you paid AMC a wagon fee whether or not you watched. AMC received no merit in exchange for this free cash. CNN, MTV, Comedy Central, and people enjoy the same racial action.
Hollywood is terrified by streaming because it is a merit-based phenomenon. To draw in and retain subscribers, AMC must create content that viewers want to see.
Hollywood cannot live on significance, at least not in terms of the affirmative action that cable and satellite TV received.
AMC’s streaming problem is also related to the fact that it is both extremely common and is generating advertising revenue. Not only are membership companies running ads then, so are the complimentary streaming service such as Pluto, FreeVee, Tubi, and Roku.
It’s all coming off.
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