There is an interesting thread running through left-wing Hollywood’s quarterly reports. They’re all bringing in good numbers (subscriber growth, etc.), but their stock prices are still falling. Last week it was Disney Grooming Syndicate. This week it’s AMC.
In the first quarter of 2024, AMC’s streaming subscribers grew by 2% (adding 300,000) and now stands at 11.5 million. Streaming revenue increased 3% compared to last year to $145 million. but…
AMC Networks reported first-quarter results on Friday, noting that U.S. ad revenue fell 13% to $140 million due to “linear declines in viewership and a challenging advertising market.” Meanwhile, AMC+’s streaming subscriber count reached 11.5 million, an increase of 300,000 since March 2023.
The company’s stock price fell about 10% following this report. An hour and a half after AMC’s earnings release, the company’s stock was listed at $12.35 per share. The company’s stock price has fallen about 34% since the beginning of the year.
what happened?
Well, that’s exactly what I’ve been predicting for over a decade.
This is another example of how the death of cable/satellite TV is making these leftist entertainment mediums disappear.
It is true that viewer ratings will decline linearly and the advertising market will become difficult.
Linear ratings are based on the number of cable/satellite viewers, and with millions of people cutting the cable cord every quarter, fewer and fewer people have cable, and fewer and fewer people have access to AMC. There are fewer and fewer people watching AMC. As a result, advertising revenue decreases. What isn’t mentioned here is the reduction in transportation fees, which is the amount that AMC collects from each household that uses its network.
Here’s what Wall Street knows…
Streaming will never be able to make up for the devastating losses caused by the slow demise of cable/satellite TV. As you know, broadcasters like AMC made billions of dollars from cable/satellite TV they didn’t get. If AMC is part of your cable/satellite package, you’re paying AMC for shipping whether you watch it or not. This was free money for AMC based on zero benefits. CNN, MTV, Comedy Central, and others enjoy similar affirmative action practices.
Streaming is scaring Hollywood, purely because of its benefits. To attract and retain subscribers, AMC must produce content that people want to watch.
Hollywood cannot survive on merit alone, at least not as lucrative as the affirmative action of cable and satellite television.
Another problem for media outlets like AMC is that streaming is so popular that it eats into advertising dollars. Currently, subscription services as well as free streaming services such as Pluto, FreeVee, Tubi, and Roku are advertising.
Everything is falling apart.
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