{"id":20337,"date":"2014-12-01T18:01:07","date_gmt":"2014-12-01T23:01:07","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=20337"},"modified":"2014-12-01T18:16:40","modified_gmt":"2014-12-01T23:16:40","slug":"amc-networks-7","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2014\/12\/01\/amc-networks-7\/","title":{"rendered":"AMC Networks"},"content":{"rendered":"
by Griffin Morrow<\/pre>\n
\"AMC<\/a>
AMC Networks and their cable family. [31]<\/a><\/p><\/div>\n
Profile<\/strong><\/p>\n
AMC Networks Inc.<\/a>, operating under the title of Rainbow Media Holdings for decades, is a former subsidiary of Cablevison<\/a> that was spun off in the Summer of 2011 as a publicly traded company [1]<\/a>. The New York based organization owns and operates cable channels AMC<\/a>, IFC<\/a>, WE tv<\/a>, and SundanceTV<\/a>\u00a0and recently\u00a0acquired\u00a0a stake in BBC America<\/a>\u00a0[2]<\/a>. AMC<\/a>, the obvious bell-cow of the cable bundle, has birthed dramas such as Mad Men<\/a> and Breaking Bad<\/a> that helped catalyze the so called \u201cgolden age\u201d in cable television from 2007 onwards. This stretch of critical acclaim has scored AMC<\/a> 207 Emmy<\/a> nominations along with 33 wins [3]<\/a>, including five of the last six Emmys for Outstanding Drama Series [4]<\/a>.<\/p>\n
Key Executives<\/span><\/p>\n
\"Joshua<\/a>
Joshua Sapan – President and Chief Executive Officer (photos curtesy of AMC Networks [37]<\/a>)<\/p><\/div>\n
\"Charles<\/a>
Charles F. Dolan – Executive Chairman<\/p><\/div>\n
\"Edward<\/a>
Edward A. Carroll – Chief Operating Officer<\/p><\/div>\n
\"Sean<\/a>
Sean S. Sullivan – Executive Vice President and Chief Financial Officer<\/p><\/div>\n
Programming Reach<\/span><\/p>\n
Ranking as the 14th most watched network among the coveted 18-49 demo [5]<\/a>, AMC<\/a>\u00a0reaches 97 million American households. AMC Networks<\/a>, however, finds itself in a unfortunate predicament. Other cable entities WE tv,<\/a> IFC<\/a>, and Sundance<\/a> have failed to match the margins AMC<\/a> has managed. Among the 18-49 demographic, WE tv<\/a> ranks 39th, IFC<\/a> stumbles into 58th, and Sundance<\/a> checks in at a disappointing 88th [6]<\/a>.<\/p>\n
Economics<\/span><\/p>\n
\"Three<\/a>
Three year economic landscape since going public [33]<\/a>.<\/p><\/div>\n
To the blind eye, AMC Networks<\/a> would seemingly be reveling in their cult-like headlining dramas they\u2019ve found in Madison Avenue and meth making high school chemistry teachers. Since going public on June 21st of 2011 AMC Networks<\/a> shares are up nearly $29 in price, an increase of almost 82% over three years [7]<\/a>. Affiliate fees augmented from a 2007 margin of 22 cents per customer per month to 33 cents in 2013 [8]<\/a>. The recent 3Q report stated a stout 31% increase in net revenue from levels a year ago to $514.2 million [9]<\/a>. So what\u2019s not to like for AMC Networks<\/a>? Ad revenues have slipped by 6% in this recent quarter with a 19% drop in audiences [10]<\/a>. Operating income this quarter was $12 million short of last years. Shares hit a 52-week low on October 13th when prices fell to $52.75. Moreover, AMCX<\/a> stock has tumbled by approximately 18% in the last year.<\/p>\n
Life After Mad<\/a> and Bad<\/a><\/strong><\/p>\n
Dramatic successes that once stoked the AMC flame have begun to fade. Viewers said goodbye to Breaking Bad<\/a> last fall and will prepare to jettison Mad Men<\/a> after it’s end next spring. Questions as to how the organization will survive such gigantic losses in programming have dominated industry conversations for some time. One common theme reigns supreme: if AMC<\/a> plans on continuing on, they need something to replace their prior hits. And fast. The majority of the industry, AMC Networks<\/a> investors in particular, are wondering if this is possible.<\/p>\n
Zombies Devouring American Audiences\u00a0<\/span><\/p>\n
\"Iconic<\/a>
Protagonist Rick Grimes investigates a desolate Atlanta in the iconic season 1 poster. [32]<\/a><\/p><\/div>\n
The most life in AMC Networks<\/a> ironically resides within the cold clammy hands of the undead. A television adaption of Robert Kirkman<\/a>\u2019s zombie apocalypse graphic novel \u201cThe Walking Dead<\/a>” has has wowed audiences suspenseful storytelling and heaps of zombie carnage. The Walking Dead premiered on Halloween night in 2010 with 5.35 million viewers, an AMC<\/a> first [11]<\/a>. The show has produced end over end increase since. The Walking Dead<\/a> ended it\u2019s 4th season with an average of 13.3 million viewers [12]<\/a>, a growth margin that prompted AMC<\/a> to renew the show for a sixth season before the fifth season even aired [13]<\/a>.<\/p>\n
\"A<\/a>
A “Walker” enjoying a mid-afternoon snack. [34]<\/a><\/p><\/div>\n
The infectious love for zombies has proved so strong that the first episode of season five shattered television viewing history. An audience of 17.3 million viewers for the season five premiere crowded The Walking Dead<\/a> as the highest rated show in cable television history [14]<\/a>. The October 12th premiere, with help from the 7% increase in viewership, managed to out muscle typical ratings power house Sunday Night Football<\/a>\u00a0[15]<\/a>. Playing off of a dedicated following from the graphic novel has allowed the show to become the most popular program among the 18-49 demographic for two consecutive years [16]<\/a>.<\/p>\n
Lightning Doesn’t Strike Twice…<\/span><\/p>\n
All in all, AMC networks has whiffed when it comes to finding their next trademark show. Recently premiering series that AMC networks hoped would share the same prestigious stage as their predecessors have fallen significantly short.\u00a0Rubicon<\/a>, a conspiracy thriller set against the New York skyline, proved anything but thrilling for viewers and was cancelled three months after debuting due to subpar ratings [17]<\/a>.<\/p>\n
\"The<\/a>
The Walking Dead stifles the average viewership of the other AMC programming. [35]<\/a><\/p><\/div>\n
The Detroit based crime drama Low Winter Sun<\/a> adapted from a two-part British mini-series of the same name lasted only ten episodes [18]<\/a>. Even the more constant series such as Hell on Wheels<\/a>, Halt and Catch Fire<\/a>, and TURN<\/a> have underperformed expectations.<\/p>\n
there is importantnt text here that you can’t see<\/span><\/p>\n
…or Does It?<\/span><\/p>\n