AMC Networks (NASDAQ: AMCX) has reported a noticeable uptick in its streaming revenue for the second quarter of 2025, reflecting a pivotal shift in its business model amid ongoing challenges in traditional linear television. Streaming revenue climbed to $169 million, marking a 12% increase compared to the same period last year. The company attributes this growth primarily to recent price increases across its suite of streaming services, including AMC+, Acorn TV, and Shudder.
Alongside this financial lift, AMC Networks saw an increase in its domestic streaming subscriber base, which grew to 10.4 million from 10.2 million in the prior quarter. This marks a modest but meaningful rise and provides insight into the company’s evolving approach to reporting subscriber numbers. Since the first quarter of 2025, AMC Networks has changed its methodology for calculating streaming subscribers. The revised method now counts only those who pay directly for one of its streaming packages, excluding those who gain access through bundled video packages that also include linear programming. This adjustment offers a more precise picture of paying customers and sheds light on the true growth of the streaming business.
Despite the progress in streaming, AMC Networks continues to face headwinds in its traditional cable and advertising revenues. While streaming grew, advertising revenue in the U.S. declined by 18% to $123 million due to a decrease in linear TV ratings and lower marketplace pricing, including reduced digital cost per mille (CPM) rates. Additionally, subscription revenues from linear packages slipped 1% to $320 million, reflecting ongoing subscriber losses in traditional pay-TV.
However, AMC Networks found some bright spots beyond streaming growth. Content licensing revenues rose 26% to $84 million, boosted in part by the sale of the company’s music catalog and executive producer fees related to Apple TV+’s science fiction series “Silo.” Overall, the company reported net revenue of $600 million for the quarter, a 4% decline from the previous year but higher than analyst expectations.
This quarter also highlighted AMC Networks’ strategic focus on programming and profitability. CEO Kristin Dolan acknowledged the accelerated growth in streaming revenue and the strength in content licensing, emphasizing the company’s commitment to delivering distinctive series and films across multiple platforms. Dolan shared optimism about the company’s cash flow position, noting an increased free cash flow outlook for 2025, now expected to reach approximately $250 million.
The streaming subscriber base increase of 10.4 million comes after a period of recalibration in subscriber quality. The company has implemented stricter credit standards for new sign-ups and timed its content slate and marketing efforts to attract higher-value customers. This approach is aimed at long-term subscriber retention and engagement rather than rapid but lower-quality subscriber accumulation.
While the challenges in linear TV and advertising persist, AMC Networks’ results highlight a business navigating industry shifts by leaning more heavily into streaming and content licensing. The feel of the quarter’s performance is one of careful adjustment, balancing short-term losses in traditional arenas with strategic investments in digital growth and content monetization.
For a company well-known for franchises like “The Walking Dead” and its numerous niche streaming brands, this quarter underscores the evolving landscape for media companies, one where direct consumer relationships through streaming services increasingly define success. AMC Networks’ experience points to the complexity and necessity of adapting legacy models while crafting new revenue streams in a competitive and changing entertainment market.
