AMC Networks Interim CEO Talks Streaming, Netflix’s Stumble
AMC Networks interim CEO Matt Blank, who runs the company behind the AMC, IFC and Sundance Channel networks, as well as niche streaming services like horror-centric Shudder, isn’t taking much notice of the noise on Wall Street these days.
After Netflix disrupted the streaming space by disclosing a loss of 200,000 subscribers during its most recent quarter, Blank insisted Wall Street watchers are likely to be more realistic about the media business. “We like this more rational conversation,” Blank told the MoffettNathanson Media & Communications Summit during a session that was webcast.
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“The good news from some of this noise is everyone will start looking more carefully at the business side of streaming. It’s not just how big your subs are, how big the TAM (Total Addressable Market) is. I think the financial community has been an enabler to some of these crazy valuations out there. And as things are coming a little bit back to Earth, I think there’s an opportunity for us not to be washed by the same cloth,” he added.
As Blank reiterated that AMC doesn’t directly compete with entertainment and streaming giants as it embraces a differentiated targeted streaming strategy, he said the key to streaming success is setting a goal, ignoring market noise and just pressing forward. He added financial markets have not differentiated and judged competing streaming services as a business, except by the number of subscribers they signed up as a sign of future profitability.
Netflix’s stumble could be AMC’s gain, he added. “This is a superior environment for us to operate. And we do not change our strategy. We cannot change our tactics because of what happens in a given quarter to another company, or how financial markets react to those things,” Blank told investors.
The AMC interim head mocked financial markets for trashing potentially one of the most successful entertainment companies ever in Netflix. “All of a sudden Netflix is done. We don’t have to worry about that. We can just do what we do well and keep investing in content and investing in these targeted audiences and investing in AMC+, and that business is going to grow,” Blank insisted.
He also scoffed at the idea of Netflix bringing in ads as the solution to that company’s woes, but didn’t rule out AMC having commercials during its programming. “We continue to evaluate it… We don’t have plans at the moment. We’re not saying we won’t do that. But there’s a lot of questions out there. Our services are priced relatively low,” he said.
Blank also argued consolidation in the streaming space will continue, but the potential for media giants to acquire other media giants was limited. “The targets are getting smaller and smaller, we’ll see what happens,” Blank said.
