AMC Networks is the latest media platform to roll out an ad-supported tier for AMC+, AMC Networks’ streaming subscription service. In the coming weeks, AMC Networks, home to AMC, BBC America, AcornTV, Shudder, Sundance Now and others, will roll out the streaming subscription on its direct-to-consumer platform and apps and expand to third-party platforms and channels, according to a September 28, 2023 news release. The company previously announced their plans to add an ad-supported tier in April.

The ad-supported tier will be priced at $4.99 a month, after a seven-day free trial. Subscribers can expect a “light ad load” with less than five minutes of advertising per hour of viewing time. The lower-priced tier will offer the same content as the ad-free version, currently available for $8.99 a month, or $83.88 a year, representing 20% savings over the monthly cost.

Top programming and originals

Some of AMC Networks’ most popular programs include original series, signature originals and repeats of old favorites:

• The Walking Dead: Daryl Dixon
• Fear the Walking Dead
• Dark Winds
• Anne Rice’s Interview with the Vampire
• Anne Rice’s Mayfair Witches
• A Discovery of Witches
• Gangs of London
• The Vanishing Triangle
• V/H/S
• Hell House
• Paint
• Mad Men
• Halt & Catch Fire
• TURN: Washington’s Spies
• Hell on Wheels
• The Son
• The Terror
• Killing Eve

“This ad-supported version of AMC+ gives consumers more flexibility while bringing ads to the only piece of our distribution ecosystem that wasn’t already ad-supported,” said Kim Kelleher, CEO of AMC Networks. “Now, with our linear networks, strong and growing presence on CTV and FAST platforms and ad-supported AMC+, our advertising partners can fully leverage the reach and appeal of our high-quality shows and connect with viewers wherever and however they choose to watch.”

“We are also able to offer marketers new and innovative ways to reach consumers, like interactive and shoppable ads, more flexibility in product integrations, whole genre takeovers and other tech-enabled enhancements that weren’t possible before,” Kelleher added.

AMC+ can be downloaded from the App Store and the Google Play store. It can be viewed on smart TVs (Amazon Fire TV, Apple TV, Roku, Samsung and Vizio), on computers via macOS, Chrome OS and Windows PC, and on Amazon Fire tablets, Android phones and tablets, and iPhones and iPads.

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Advertising

AMC Networks said they have dozens of advertisers already signed on. To appeal to advertisers, AMC is offering them a wide range of high-impact advertising options including interactive ad units, squeeze-back screens during “Next On” promos, shoppable ads, overlays, ad-break trivia, inserted integrations, episodic takeovers and more.

Second quarter financials

In August, AMC Networks reported the company’s second quarter results for the period ending June 30, 2023. The company had net revenue of $679 million, an 8% decrease year-over-year. The company saw losses in ad revenue from their linear channels and lower affiliate and 25/7 Media revenue, but streaming revenue grew by 13%. Adjusted operating income for the quarter was $176.8 million, a 9.6% decrease year-over-year, and diluted earnings per share of $1.60, a 16.2% decrease year-over-year. The company ended the quarter with 11.0 million streaming subscribers, a 6% increase year-over-year.

Insider Take

The major streaming subscription services – Netflix, Max, Disney Plus, Hulu – have already added ad-supported tiers to their premium subscription services, and smaller, niche streaming services are now following suit. Why? Because many viewers subscribe to multiple services and the lower ad-priced tiers allow them to afford more services rather than having to just select one or two.

Also, the streaming services want to diversify revenue streams for long-term sustainability. Subscriber numbers, even in the best of times, are not guaranteed and a volatile economy impacts subscriber choices. Streaming services have to shore up their financials, so they can continue to provide and improve user experience while investing in new content to attract and retain subscribers. Offering different plan options, including ad-supported tiers, gives them additional sources of revenue.

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