AMC Entertainment is expected to experience growth in fourth-quarter revenues, propelled by a strong increase in attendance.
The television industry is at the beginning of an era that can be termed “the great rebundling,” said AMC Networks CFO Patrick O’Connell.
Speaking at a J.P. Morgan conference on Tuesday, O’Connell pointed to the Disney-Charter deal as a model for streaming services moving forward. He argued with more bundling, and more ad-supported linear networks being added to the paid TV ecosystem, these packages will be a better value for customers, rather than subscribing to several streaming services, which have been raising prices and cutting down content spend.
AMC Networks, he argued, “overdelivers audience vis-à-vis our current affiliate share” in its linear business, which he believes can translate to the streaming business. This argument comes after the company recently reported fourth-quarter earnings that saw an increase of 2.7 percent in its streaming subscribers, to reach 11.4 million, and a drop in U.S. ad sales by 23 percent year over year, amid what the company saw as a tough advertising market and an ongoing decline in linear TV ratings. $AMC Networks (AMCX.US)$ $AMC Entertainment (AMC.US)$
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