Christine Dolan, who took over as CEO of AMC Networks earlier this year, said the company is “very well positioned” for management through the WGA strike.
Speaking on the company’s first-quarter earnings call, Dolan said AMC Networks has been doing well “throughout this year and into next year, so we have no real concerns about writers going on strike at this point.”
Union members officially began striking a week ago and early signs suggest the labor impasse could continue for months. The effect spread throughout the television landscape, as overnight shows gradually darkened and other productions were disrupted. Media CEOs have been in the spotlight during quarterly earnings season, with Paramount’s Bob Bakish and Warner Bros. Discovery’s David Zaslav each making headlines.
AMC Networks has seen significant layoffs, cutting 20% of staff at the end of 2022. On the programming front, the company spends on the order of $1 billion a year on series like Mayfair Witches From the world of ann rice and new spin-offs from the walking Dead franchise.
The company relies on advertising revenue on both linear and broadcast television. While the overall numbers were strong in the quarter, ad revenue was down 20%. The company blamed the decline on “expected declines in linear ratings, a softness in the advertising market, and fewer episodes of original programming”.
Broadcasting, specifically the niche focus of the company’s portfolio and outlets such as Shudder and AcornTV, was an increasingly important strategic objective. The company fell 300 thousand subscribers in the second quarter to settle at 11.5 million subscribers. It previously set a goal of 20 million to 25 million streaming subscribers by 2025, which indicates that broadcasting will soon overtake traditional linear television as a source of revenue.
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