AMC+ to Add Ad-Supported Tier Later This Year

To provide more options to viewers and to extend advertisers’ reach beyond linear TV

AMC Networks is jumping on the ad-supported tier bandwagon for their streaming service later this year, joining Disney+, Netflix, Hulu, Max and others.. The company said this new tier will give subscribers flexibility while also giving advertisers another way reaching the network’s audiences beyond linear TV, including their niche audiences.

Currently, the AMC+ premium streaming bundle includes access to Shudder, IFC Films Unlimited, BBC America, the Walking Dead Universe, and Sundance Now streaming services. The premium streaming subscription service also offers new movies every Friday, including exclusive films like Vesper, Corsage, The Lair and Apology. AMC+ is available for $8.99 a month plus tax after a seven-day free trial, or $83.88 plus tax if paid annually. This annual plan averages out to $6.99 a month. It is available on smart TVs, computers, mobile devices and tablets. It can be downloaded from the App Store or Google Play.

“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.

“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,” Kelleher added.

AMC+ hero image featuring six AMC+ favorites: A Discovery of Witches, Mad Men, Interview with the Vampire, Tales of the Walking Dead, Creepshow and Hell on Wheels — *Source: Screenshot from AMC+ online*

Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.

2022 financial results

On February 17, 2023, AMC Networks released their 2022 financials. Highlights from the earnings report include the following:

For the full year 2022, AMC Networks had revenue of $3.1 billion, a 1% increase year-over-year.
Streaming revenue was $502 million, a 35% increase year-over-year.
The company finished 2022 with 11.8 million subscribers.
They launched a new Anne Rice Universe franchise with Anne Rice’s Interview with the Vampire, which became the #1 new series launch in AMC+ history and the #2 new basic cable drama in 2022.
AMC+ premiered the final season of The Walking Dead, finishing the season with AMC+’s highest single day of viewership ever.
The company tested new pricing and packaging with Verizon’s +play Early Access. As part of the package, Verizon mobile and 5G Home customers received 12 free months of Netflix Premium with the purchase of a 12-month subscription to AMC+.

“AMC Networks is focused on maximizing the value of our high-quality, popular content through optimized content monetization as we reduce costs and drive cash flow. We believe this approach will position the company well to navigate current industry dynamics and enable us to generate long-term shareholder value,” said AMC Networks Interim Executive Chairman James L. Dolan in a February 17, 2023 news release.

AMC Networks will release first quarter 2023 financials on May 5, 2023.

Insider Take

While it is not a surprise that AMC+ would offer an ad-supported tier, it is hard to imagine that it will draw more subscribers. Already priced very low at $8.99 a month, would dropping the price by even $2 to $3 a month attract a new audience? It seems that subscribers to AMC+ are loyal to franchises including spin-offs of The Walking Dead and more Anne Rice series (Anne Rice’s Mayfair Witches, The Walking Dead: Dead City and The Walking Dead: Daryl Dixon), so price is probably not a factor as much as content is. But maybe the network’s goal is not to grow subscriptions as much as it is a way to optimize advertiser revenue by giving existing and prospective advertisers broader reach beyond linear TV while diversifying their revenue streams.

Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.

Filed in Business Strategy, Entertainment and Streaming, News, Product Development

Dana E. Neuts

Dana Neuts is Subscription Insider's Editorial Director, covering our daily subscription news as well as member features, case studies, premium content, and reports. Dana is also a writer, editor, marketer and communications professional. Her work has appeared in AARP Bulletin, The Seattle Times, Seattle Business, 425 Business, 425 Magazine, South Sound Magazine, Northwest Travel and more. Her specialties include business writing, community news, senior issues, travel and, of course, subscriptions!