The latest quarterly report from left-wing Hollywood reveals a curious trend. While subscriber numbers and revenues are on the rise, stock prices for companies like Disney and AMC are dropping. In the first quarter of 2024, AMC saw a two percent increase in streaming subscribers and a three percent growth in streaming revenues, reaching 11.5 million subscribers and $145 million in revenue. However, the company also reported a 13% decline in US ad revenue to $140 million, attributed to a drop in linear ratings and a tough ad market. This resulted in a 10% decrease in the company’s stock price, with year-to-date losses of 34%.
The decline in traditional cable and satellite TV viewership is impacting the bottom line of these entertainment outlets. As more people cut the cord, fewer viewers have access to channels like AMC, leading to decreased ad revenue. Additionally, streaming services are becoming more popular and competitive, further affecting ad revenue for traditional networks. The shift to streaming requires outlets like AMC to produce quality content to attract and retain subscribers, unlike the previous model where they received revenue from cable carriage fees regardless of viewership.
The transition to streaming represents a challenge for Hollywood as it moves away from the guaranteed income of cable/satellite TV. The industry must adapt to the new landscape where success is based on merit, rather than automatic revenue from cable subscriptions. As competition in the streaming market grows and ad dollars are spread across various platforms, traditional entertainment outlets like AMC are facing significant challenges.
Overall, the shift from cable/satellite TV to streaming platforms is causing disruption in the industry, impacting both revenues and stock prices for companies like AMC. Hollywood must navigate these changes and find new ways to attract audiences and generate income in the evolving media landscape.
