AMC Networks sheds 5% of workforce, hits streaming ‘inflection point’ in Q3

Past seasons of AMC Networks hit The Walking Dead screen on Netflix

AMC Networks reduced its global workforce by around 5% in the third quarter as the US-based network and studio group offered voluntary buyouts to its global teams.

Kristin Dolan

CEO Kristin Dolan said the buyout offers had no “specific financial targets” but were designed to “strengthen our talent base and ensure we have the right skills for the future.”

The company made the revelation during an earnings call for its third-quarter financials, which saw revenues slide 6% to US$561.7m as 14% growth in its streaming operation was offset by affiliate revenue decreases.

In its domestic segment, revenue was down 8% to US$485.7m, while its international segment saw a 5% increase to US$77.1m. Across the company, adjusted operating income was down 28% to US$94.4m.

In the third quarter, AMC Networks added around 200,000 subscribers across its suite of platforms, including AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE, to reach 10.4 million globally.

That helped push streaming revenue up 14% to US$174m, meaning that streaming remains on course to be AMC Networks’ largest single source of revenue domestically this year. “This is a meaningful inflection point as we continue to manage the business for the long term,” said Dolan, adding that it was a key part of “our transition from a cable networks business to a global streaming and technology-focused content company.”

The exec added that, in an environment where many of the larger linear-streamer-studio groups look to split apart, AMC Networks is seeing opportunities in remaining laser-focused on transitioning from linear to streaming.

“As much larger companies spin off assets or split up to find clarity in a complicated time, we’ve built the components of a modern media business that is nimble, independent and well-suited to today’s environment and whatever comes next,” Dolan said.

“We have a successful studio that produces programming and franchises that attract passionate and engaged viewers. We’re home to the world’s largest collection of targeted services, bringing fans of specific genres and [have an] unmatched level of curation and depth.”

Elsewhere in Q3, AMC Networks renewed its agreement with Netflix through which the streaming giant licenses a large number of past seasons of its franchises, including The Walking Dead and Anne Rice, while AMC Networks debuts new seasons across its proprietary platforms.