The Walking Dead

Gene Page/AMC
Courtesy AMC
Fill 1
Fill 1
July 25, 2016
Features

Beating Back the Zombies

As rumors swell, AMC Networks stands successfully solo.

Daniel Frankel

Amid the cannibalistic, seemingly post-apocalyptic era that is the current television business, AMC Networks is a bit like Rick Grimes and his band of survivors on the hugely popular zombie drama, The Walking Dead.

As larger channel owners, like Viacom, struggle to sustain viewership, ad sales and profitability amid the streaming video epidemic that is eroding traditional media, AMC Networks has ridden huge hits on its flagship channel — most notably, The Walking Dead — to not just thrive, but survive.

In 201S, AMC Networks' revenue was up 18.6 percent — to almost $2.6 billion — driven by the huge ad dollars paid during the final episodes of Mad Men and the increased carriage fees from pay-TV operators, whose subscribers threaten to cut the cord if they don't get their Sunday-night zombie fix.

Picture The Walking Dead's Michonne wielding her katana on the hapless re-animated. That's what the AMC sales force looks like in the upfront ad meetings these days.

But surviving is easy when you have hits. Eventually, every content company needs a little shelter and reinforcement. That's why, when media mergers come up these days — and they come up a lot — AMC Networks is one of the first companies mentioned.

For example, a rumor keeps circulating that AMC will merge with premium-cable network Starz. Such a union would give the conglomerate more leverage when it comes to negotiating with pay-TV operators over fees for AMC as well as channels like BBC America, We tv, IFC and SundanceTV.

Consider that in Longview, Texas, recently a small cable operator, Longview-Kilgore Cable, decided not to renew its licensing deal with AMC Networks, dismissively noting in a company statement that AMC's "additional costs and the less desirable programming would not be in the best interest of our subscribers."

After all, the cable company added, AMC's most popular show, The Walking Dead, "is available for streaming on iTunes and Amazon Instant Video."

This bargaining posture might be more difficult to assume if Longview-Kilgore's customers were missing out on Starz originals like Outlander, too. For programmers, leverage is everything these days, especially since AT&T's purchase of DirecTV and Charter Communications' acquisition of Time Warner Cable have turned pay-TV's top five services into a mega-powerful top three.

Of course, for AMC, it's not like the proverbial zombie is at the door.

Its recent spinoffs, Fear the Walking Dead and Better Call Saul, along with kung-fu drama Into the Badlands, have generated strong ratings in the all-important 18-to-49 demo. And from Mad Men to Breaking Bad, the conglomerate has a streaming library to generate steady revenue. As long as the company can maintain its acumen for water-cooler hits, it will probably do just fine on its own.

“The urgency of our shows matters a lot," AMC Networks chief executive Josh Sapin recently told investors. "We think we are rare in that strength."


This story originally appeared in emmy magazine, Issue 6, 2016

Browser Requirements
The TelevisionAcademy.com sites look and perform best when using a modern browser.

We suggest you use the latest version of any of these browsers:

Chrome
Firefox
Safari


Visiting the site with Internet Explorer or other browsers may not provide the best viewing experience.

Close Window