Matt Blank, head of AMC Networks, finds it “funny” that Netflix and big rivals think that advertising “solves all the problems” in streaming

AMC Networks CEO Matt Blanc said the company “has no plans” for the level of advertising support for its family-oriented streaming services, including Shudder, Acorn TV, and AMC +.

“If the business changes,” he told Wall Street analysts during a quarterly corporate conference call, “we think we have the opportunity to be affordable and adaptable.”

In its first quarter report, AMC Networks said it had reached 9.5 million streaming subscribers at the end of the quarter on March 31, half a million more than the previous quarter.

Blanc didn’t mention Netflix, but was asked about AMC Networks, which was studying cheaper versions of its ad-supported services that had achieved an internal forecast of 20 to 25 million cumulative subscribers by 2025. It’s a game book. to follow. Last month, Reed Hastings, CEO of Disney + and Netflix, dropped a bombshell that the company would finally continue advertising for years after a firm pushback. The announcement was offered as a ray of hope for investors during the disastrous quarterly report. Netflix recorded its first subscriber loss since 2011 and has released a dark view suggesting that its long-dominant global streaming machine has hit a wall, at least for now.

“This is ridiculous,” said Blank. “When you hear that another great player is in trouble … Suddenly the commercial will solve all the problems. We don’t think that’s true, but we will definitely see it. “

Analysts have also questioned profitability, as Netflix’s recent loss of two-thirds of its market value has raised pressing questions about the profitability and profitability of the entire streaming business. AMC Networks, a cable company controlled by the Dolan family, Cablevision Stewardesses, says broadcast will be its main source of revenue by 2025. Disconnecting the cable destroys linear outlets in the media landscape and directions. It is that in 2022 you will see the acceleration of the losses of traditional subscribers and with it the revenues of distribution and advertising.

CFO and COO Christina Spade declined to offer specific guidance on the revenue stream, saying the company makes planning decisions based on the entire operation. “We are really seeing a holistic monetization cycle,” she said, “and that includes streaming, linear and international distribution and licensing.”

When a company seeks to strengthen its transmission operations, it will continue to build and help withstand the winds we see on the linear side. “We are very excited about the future, because the momentum of the flow continues and the linear situation ends.”

Spade highlighted the power of pricing as an important lever for AMC Networks, which is starting to gradually raise prices on some of its services. The move is based on “what we see in our content communities,” the executive said. Subscribers are “loyal to us, love the content”.

A recent impressive move in favor of the company’s streaming stores came when IFC Films changed its 1 payout window to AMC +. Schedules for an original film release every Friday night will kick off this week with a debut Cleaned upWith Adrian Broad and RZA. The films will be released in theaters in 90 days or, in some cases, will be released in theaters and on AMC + today. (IFC pioneered the day and date in the days leading up to the pay TV streaming application.)

“We have a gem, along with the IFC, in my opinion,” Spade said. Asked about the impact the change in production will have on the balance sheet, he said: “With respect to the profitability mix, it is to the extent or scale that it has no material impact.” Instead, he added, the goal is to “increase the number of subscribers we can get” for AMC +.

Blank said the company’s “number one goal” is “to get ownership and compelling programming for our broadcast customers.”

Because they’re strictly targeted to a specific audience, Spade noted, “we’re not trying to be everything to everyone, we’re trying to be everything to someone.”

Blank also agreed with the sentiment raised by one of the analysts, who noted that AMC Networks is playing a different game in terms of programming budget. While all the players at the bottom of the stream were trying to catch up on Netflix’s spending ($ 18 billion in 2021 and $ 20 billion expected this year), the results weren’t commensurate with that expense. And one of many on Netflix blame me The quarterly report addressed the lack of financial discipline.

“I think instead of focusing on spending, we want to focus on the new content we offer,” said Blank. “We know we can be more profitable and, as you know, it’s a difficult measure right now because we’ve seen you could spend $ 18 billion on content and it wouldn’t make it a better business.”