AMC NETWORKS AND CHARTER COMMUNICATIONS ANNOUNCE EARLY MULTI-YEAR RENEWAL AGREEMENT FOR DISTRIBUTION OF AMC NETWORKS' LINEAR NETWORKS AND DIRECT-TO-CONSUMER STREAMING SERVICE
Rhea-AI Summary
AMC Networks and Charter Communications have announced an early multi-year renewal of their distribution agreement. Key points include:
1. Charter will continue to carry AMC Networks' linear cable networks.
2. The ad-supported version of AMC+ will be included at no additional cost for Spectrum TV Select customers.
3. AMC+ will be available for purchase by Charter's Internet-only customers.
4. Spectrum TV Select Plus customers will receive over $40/month in retail value for streaming apps.
5. The deal includes continued access to AMC Networks' cable portfolio, featuring popular shows like The Walking Dead Universe and Dark Winds.
This agreement aligns with Charter's strategy of enhancing its content offerings and AMC Networks' goal of expanding viewer access to its programming.
Positive
- Early multi-year renewal of distribution agreement, ensuring long-term partnership
- Inclusion of ad-supported AMC+ at no additional cost for Spectrum TV Select customers
- Expansion of AMC+ availability to Charter's Internet-only customers
- Increased value proposition for Spectrum TV customers with over $40/month in streaming app retail value
- Continued access to AMC Networks' popular cable portfolio for Spectrum video customers
Negative
- None.
Insights
This early renewal agreement between AMC Networks and Charter Communications represents a significant shift in the streaming landscape. By including AMC+ in Spectrum TV Select packages at no additional cost, Charter is enhancing its value proposition to combat cord-cutting. This move aligns with the industry trend of bundling streaming services with traditional cable packages.
The deal's impact extends beyond just AMC and Charter. It sets a precedent for future negotiations between content providers and cable operators, potentially influencing how streaming services are packaged and priced. For AMC Networks, this agreement secures a stable revenue stream and expands its reach, which is important in the competitive streaming market.
Investors should note that while this deal strengthens AMC's position, it may also indicate pressure on standalone streaming models. The long-term implications for both companies' financials and market positions warrant close attention.
This agreement is likely to have a positive financial impact for both AMC Networks and Charter Communications. For AMC, it ensures a steady revenue stream from carriage fees and potentially increases AMC+ subscribers through Charter's customer base. This could lead to improved ad revenue and subscription growth for AMC Networks.
For Charter, the deal enhances its product offering without significantly increasing costs, potentially reducing churn and attracting new customers. The
While financial terms weren't disclosed, the multi-year nature of the agreement provides stability and predictability for both companies' future earnings. Investors should monitor future earnings reports to gauge the deal's impact on subscriber numbers and revenue growth for both entities.
Ad-Supported AMC+ will be Included in All Spectrum TV Select Packages at No Additional Cost to Customers
Charter to Make AMC+ Available for Purchase by Internet-Only Customers
With the addition of AMC+, Charter, through its programming deals, will be providing its Spectrum TV Select Plus customers more than
"This agreement with AMC Networks supports our goal of enhancing the value and variety of premium entertainment content available to our customers," said Tom Montemagno, Executive Vice President, Programming Acquisition for Charter, which operates the Spectrum brand of video and connectivity services. "The addition of AMC+ at no extra cost for our TV Select customers builds on our new distribution framework, which this year alone has included the addition of Paramount+ Essential, ViX Premium with Ads, Disney+ and ESPN+. We appreciate AMC Networks' partnership in reaching a distribution agreement that benefits our mutual customers and helps transform the video industry."
With the agreement, Spectrum video customers will continue to enjoy access to AMC Networks' cable portfolio, including AMC – home to The Walking Dead Universe, the Anne Rice Immortal Universe and acclaimed series, including Dark Winds, Gangs of
"This early, multi-year agreement between Charter and AMC Networks ensures Spectrum TV customers will continue to have access to our high-quality original programming however they prefer to watch it, including through the ad-supported version of AMC+," said Kim Kelleher, Chief Commercial Officer of AMC Networks. "Charter has been a long-time partner, and this agreement reflects our strong and mutually beneficial relationship and commitment to viewers."
Financial terms of the agreement were not disclosed.
About AMC Networks
AMC Networks (Nasdaq: AMCX) is home to many of the greatest stories and characters in TV and film and the premier destination for passionate and engaged fan communities around the world. The company creates and curates celebrated series and films across distinct brands and makes them available to audiences everywhere. Its portfolio includes targeted streaming services AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE; cable networks AMC, BBC AMERICA (operated through a joint venture with BBC Studios, which includes U.S. distribution and sales responsibilities for BBC News), IFC, SundanceTV and WE tv; and film distribution labels IFC Films and RLJE Films. The company also operates AMC Studios, its in-house studio, production and distribution operation behind acclaimed and fan-favorite original franchises including The Walking Dead Universe and the Anne Rice Immortal Universe; and AMC Networks International, its international programming business.
About Charter
Charter Communications, Inc. (NASDAQ: CHTR) is a leading broadband connectivity company and cable operator with services available to more than 57 million homes and businesses in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice.
For small and medium-sized companies, Spectrum Business® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise® provides highly customized, fiber-based solutions. Spectrum Reach® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. More information about Charter can be found at corporate.charter.com.
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SOURCE Charter Communications, Inc.
FAQ
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