AMC Networks Continues to Suffer From Cable Cord Cutters, Sees 7% Dip in Revenue

AMC Networks is still struggling as cable TV continues to shrink. During the company’s earnings report for the first quarter of 2025, which was reported on Friday, the company saw decreases across subscription revenues, content licensing and advertising, all of which was credited to contraction in the linear TV business.

Overall, domestic operations decreased 7% from 2024, coming in at $486 million. That includes content licensing, which decreased 13% to $54 million, and advertising revenues, which decreased 15% to $119 million primarily due to linear ratings declines. The drop in content licensing had to do with what programs were available to be licensed during the period. The first quarter of 2024 saw a boost due to the sale of AMC’s rights to “Killing Eve.”

As for subscription revenues, which also fall under domestic operations, that told a more interesting story. The category saw a 3% decrease to $313 million due to declines in cable TV. During the period, affiliate revenues declined 12% to $156 million primarily due to subscriber declines as well as contractual rate decreases when it came to renewals, though that had less of an effect. This was offset by streaming revenues, which increased 8% to $157 million largely due to a price hike AMC+ implemented in January.

Also, starting this quarter and moving forward, AMC Networks has changed how it defines and reports “streaming subscribers.” The company will no longer be including subscribers who receive access to AMC’s streaming services through a video package that also includes access to the network’s linear programming. So, for example, though a Charter’s Spectrum TV subscriber would technically have access to AMC+ through a deal between Charter and AMC, that subscriber would not be counted as part of the company’s overall subscriber base. Only subscribers who pay a fee for one of AMC’s services, either directly through a direct-to-consumer (DTC) offering or through a third-party platform or channels store, such as Prime Video Channels, will be counted.

Here are the quarter’s key results:

Revenue: $555.2 million, down 6.9% year over year for the first quarter.

Net Income Attributable to Stockholders: $18 million, down 60.6% year over year for the first quarter.

Earnings per Share: $0.34, down 67% year over year for the first quarter.

Subscribers: 10.2 million, a number that’s consistent with the first quarter of 2024. However, that’s an almost 2% drop compared to the 10.4 million subscribers the company reported at the end of 2024.

During the quarter, AMC Networks launched ad-supported AMC+ availability for Spectrum TV Select customers starting at the end of March. This was part of the company’s multi-year renewal with the telecommunications giant, which was announced last September. Looking ahead, AMC plans to expand its FAST channels business with Acorn TV Mysteries.

Free cash flow was $94 million in a quarter. Patrick O’Connell, executive vice president and Chief Financial Officer, noted that company is “on track” to achieve its projected $220 million free cash flow for the year.

More to come …

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