AMC Networks (AMCX) 2 Nov 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the AMC Networks Third Quarter Conference Call. My name is Charles and I will be your conference operator today.

As a reminder, all lines will be placed on mute to prevent any background noise. [Operator Instructions] I will now hand over the call to our host for today, Mr. Seth Zaslow. yours. is floor the Sir,

Thank you. third the Networks welcome morning, XXXX earnings and quarter to conference AMC Good call.

Chief Executive Joining us Josh Ed Coleman, Chief team, Financial Officer. our of and Carroll, Interim Officer; Chief this morning Sapan, are President members Operating Donna Officer; executive and

a the quarter Company's Following XXXX open will we discussion for call of the questions. third results,

differ. will Company's forward-looking Reform the Private Securities statements discussion take not If of disclaims Please with the update Securities of that refer may evaluation Further, performance risks We this and presentation discussion and actual appropriate provides call. Exchange our cautioned are website on your it that the to a any is that of such you don't Litigation uncertainties. available or non-GAAP results within ongoing are Company's the supplemental believe today's Act risks statements filings with the to The Company have is forward-looking following: information. statements uncertainties discuss a XXXX. and useful amcnetworks.com. constitute copy non-GAAP involve cause note Please the and of be may Investors forward-looking the of contain discussed statements today's Commission results to you operations earnings future information any release, of for in the during concerning we performance. the the of financial Company's of that could guarantees obligation at and meaning results

non-GAAP With call to would we'll to the For like over related GAAP and release reconciliation footnotes which and further turn to for refer the to information please call. a now that, Josh. press this details, GAAP of on I to refer information,

we Coleman. operational and have until and Square her solid for with her many you performance better key feel us Donna before and a CFO. and us. our Cablevision, highlights, have name third known several at in results expertise AMC with thank delivered turning to our of quarter few Madison we permanent of Donna her Garden minutes work several and Interim benefit against years take wisdom the call expected than CFO, the through to metrics. I've a to for very the touch fortunate on over morning I'll considerable Good Networks joining

continued to We balance strong solid and liquidity flexibility sheet, and a profile maintain healthy very good a free of our increase financial levels flow. with cash financial

to very the took will number recently auction Our her modified attractive complete a which detail significant offer, financial on tender something market a at that price, us remarks. of in out shares flexibility allowed more Donna Dutch a of provide

to business. subscribers progress. services. many continued demand make very And growing on accelerating revenue key franchises. ad video the one, subscription respects, around we've growing expanding our outlined are, increasing for we distribution the our maintaining in of linear four, on our And prior content optimizing Two, Three, ownership We four They networks. and calls. good are value digital content our priorities high

of mix is I'll in fundamentally briefly subscription revenue with touch on revenue areas, our these most increasing powering areas becoming from begin our services to reconstitute most these fastest our Our with to successful ability the SVOD. growth. of our company starting areas execution notably streaming

what targeted subscription of. for outperform becoming to in Our SVOD demand you leader AMC on global recap business this video audiences. continues our consists To business with Networks for fast the expectations services

TV, targeted curated programming. Sundance four SVOD and audiences have that Now We services, defined Shudder, served UMC with Acorn

not for as complement a member services the the of entertainment Our every larger to, subscribers these a AMC that general offerings purchase replacement serve household.

as networks entertainments centric Films – shows SVOD of Mad also as and programming like Prime Dish called Video. from and seven Apple ago our offering indie Men. well Comcast, seasons a and as which available our Sundance ad few library TV IFC subscription on new America. it on Unlimited film a just BBC AMC offering Shudder, We entertainment weeks free select AMC+, includes bundled Now, is also Amazon’s such called launched and Sling, AMC+ It all have has

well All targets of these us. several seeing exceeded for if have and which I'll metrics, growth services detail may rates We're positive earlier are for performing very we stated very across I you.

the expect our million we targeted UMC to Now, to our told million subs services call, you X would of and the terms subscribers. with Sundance end that year the million to higher of end last sub services. X over And we the On end In now Acorn, year subscription at these X.X Shudder, range.

previously is a this the As until reaching of reminder, didn't a we goal end anticipate XXXX. that

are far we are of expectations. years our ahead and plan exceeding earlier two fully So

just our the addition approximately our of subscribers for year. of to X XXXX, year the in represents one terms offering in I than total That that With in in terms of business growth million range revenue. XXX%. our of company in subscribers just roughly X.X will streaming million AMC+ subscriber now And described, total to revenue, the in the we doubling year-over-year more end generate SVOD, across million expect $XXX SVOD

XX XX do underscore size, future million the the X a top company line in million, company for So our in for XX doubled very revenue we've million very, months, or terms and is subs it's of the revenues. And just our XX of the coming to subs transforming think of from of impact of streaming composition significant our we the million also today business. that in amount important

love continue will continue along the in consumers, believe content our with. As streaming will categories go the offerings that general powerful they the SVOD And force and a purchase to entertainment continues to deeper today, they identify be appeal our looking to side, offerings. TV shaping to we offerings

our specialized we're the in these offerings. the progress While of stages growth, to-date our in supports of still potential early SVOD conviction

Turning advertising. to

quarter well a upfront the going and XXXX. of momentum. terms Pricing the the of fourth greater for performance with is healthy. programming our has theme event season Christmas quarter We're we upfront, the into called solid called Universe marketplace Best Dead of fourth In The programming FearFest slate event. Walking and the the a our now, quite set And show in Walking our newest Annual calendar in we've Dead, set AMC's foundation Dead: is pleased as as Walking The programming Ever are and and and World annual strong, our Halloween Fear Beyond middle inclusive

relative on You'll third numbers see that a the advertising are for strong. our revenue quarter basis

XXXX position unique We hold benefit top landscape the four cable dramas to in to key demos. of five continue from with cable basic the in basic on the we

deeply dramas supported that environment. diversified We engaging ad premium are high only the a portfolio quality consistently delivers in

to to of to attractive on importantly free. and hard obviously of concentration audiences that reach continuing area are large high platforms very are A focus is capitalize ad advertising us award-winning Our shift offer streaming are advertisers on leverage programming accessible not their help partners for way to partnerships and through a to that content to viewers consume our our streaming. new our

to successfully ways an yielded all we're Twitch, debuted we've content, are supported increasingly a for ad So to These around and in and Pluto have to platforms advertising and on our revenue These ad streaming ad dealing effort for Sling the added supported content all adding of fan are overall franchises. IMDb key on in channels as and with addition multiple partner. recently particularly inventory bases our Amazon’s promising partnerships initiatives via centric create our partnerships results reach our meaningful. Reddit ad scale their part passionate clients that's recent that streaming manner ad digital have audiences fan we distribution becoming to

area in in launching coming to supported platforms the are ad We and have XXXX more beyond. forward looking and in we growth this months, continued

distribution. a agreement to DirecTV. the long-term on Moving partners we quarter, AT&T In reached at with carriage our

traditional largest expanding include including now multiple also we bundled also businesses our AMC+. are obviously, linear with to our well evolving as the subscribers, expand bring I in the well-suited for and SVOD’s but that MVPDs our service linear services, opportunities, AT&T bundles which shift distribution our targeted the including We're our to Our months. completed AMC+ offerings. SVOD services to to with channels them our particularly of XX in multi-year for We content bear DirecTV, our growing. AMC+ products, addition relationships distribution reflect renewals content, over of partnerships to value we've three video, new themselves these only needs the as broadband which power includes they mentioned comprehensive These our now last with TV, agreements Apple new targeted agreements carry four top Amazon partnership recently multi-platform standalone in with linear only distributors our and SVOD our extended are not not in expanded capture only traditional SVOD strong the now to With are distribution I distributors. These think just think to in our as their services. channels of and is, in addition but growing

Turning to content.

the is demos XX-XX. for performing the the follows through channel World cable apocalypse series among The the as come We episodes. the four and both The XX-XX. viewers. the very first Walking the home than the in of drama adults particularly And to Dead: As dramas one AMC top three us in in close four recently the season. with creatively zombie performance the of year the its sixth popular two I Fear show called after The for and number to XX-XX number for month, in mentioned, it also the and a adults drama returned The to-date cable new Walking Walking It's Walking generation Beyond. will newest to our XXXX cable mothership Dead be strong with mentioned on demos age in its freshman expanding that a announced key is on better This year Universe XXXX. in late adults as ranks to storylines; Latin of ever franchise first overseas key Dead in well continues ranked America. show I earlier, Dead come Last AMC six and

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Chief of by Officer activity The All Dead Gimple, Universe. Scott of this Content our led Walking

AMC+ two service. Dead: theme World early as next The year. I'll Gangs AMC Apple you our give on are as available a as about the first and well Beyond. To called AMC+ these most AMC All Dead Salisbury sense appear quite it. dramas offering London of it, and remarks. Walking in Shudder Salisbury ???????????? new those Gangs Poisonings how at really TV the well that Premieres the AMC+ service series are been two our linear new programming talked about popular from and FearFest Season won't excited growth and of with weeks The and of we from engaging London at The drivers of as launch, family note I series Halloween Amazon. beginning Poisonings two until on were our of that exclusives viewers Walking acclaimed The has viewed are network XX, of

on The availability Walking AMC+ to content its from several In days AMC+ addition, broad ahead premiere. the available allowed of Dead of Universe us linear make

episodes our resuming our while of we're library with I'm currently in and AMC+ safety on a of on And accordance in called on content. our own as we so and capitalize and growing strength still breadth one production We're safely of fans to content, the local powerful in activity doing our a Dead new us The of all to and unions Dead platform to our at guidelines season as of days in health production the new well the shows guilds. number and front, series of pleased are Texas, So interest cooperation with reach increasingly relevant Georgia, Kevin is programming, to the early on view of that Boston. production original in it's as that a shooting studio Can in F*** say Himself Walking Fear Walking allowing and the of

Finally, turning international. to

Acorn with major European co-producing mini strong and SVOD cast of called with actor its and them distribution partners AMC a our with markets TV Portugal, We stellar continue including available Zealand leading footprint. into Spain, are Tucci. Pay series availability a and our Stanley long-term our operator Shudder Oscar-winning studios in at our expand to with La Spanish Movistar+ launched now In overseas in we Fortuna relationship Australia to recently services we've New TV leveraged expanding

close the And to you. on I'll strategic Coleman the So results. Thank details on across to our in business. our continue out, positive to streaming call executing diversifying more financial strength the we subscription that, we're momentum those progress demonstrated particular, quarter the third for of increasingly the initiatives over making turn benefit from Donna business. With and our

good Thank you and morning.

million. in quarter For quarter, $XXX revenue of was the of $XXX segments. was top particularly due other to million the our our was favorable our $XXX performance, National Advertising Both primarily the Networks, company and was AOI revenue line were segments. third $XXX With quarter, revenue company $XXX total respect AOI million. to total XX% performance million. declined the And and international to expectations ahead AOI and this revenue operating At at million.

we in the As the quarter. health overall market as quarter the improvement advertising an of saw second compared third in the expected, to

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to As down for as consistent our double revenues, period. year subscription the in revenues the compared prior subscription with low were digits expectations,

to in continue subscribers. Pay to see total we mainly due As a TV declines moderation

to As attractive a wholesale Josh partners. our pricing the make we content valuable discussed, our distribution and service for continues strength believe of our us

Moving the million operating Technical content, we production primarily activities period. creation The programming XX% to delays prior amortization. million. related and suspension or to expenses In the expenses. the $XXX subsequent year $XX reduction of resulted quarter to and Total programming year which to million decreased SG&A in in million expenses charges The in in to the assets. the versus decreased in primarily XX% the variance in a of compares and to quarter, of quarter, of of versus marketing write-downs related of XXXX. and other recorded $XX a expenses third period. write-down $XX administrative This various $X costs. related million the XX% lower were third decrease prior the availability variance

other Moving international other were now $XXX revenues segments. the International and to and million.

than I expected. higher was main Levity As revenue the was driver. mentioned,

activity international than anticipated expected. comedy our sequential we resumed had the more annual at basis. production we remained While on venues our sooner – closed, also Advertising improved a than at networks

year. versus other year-over-year and X% Looking revenue prior the at results. increased our International

discussed, increase to subscribers. at targeted $XX increase services benefited in AOI our year. million was targeted offset prior our of from partially Josh the we've versus SVOD million, to an primarily the The due decrease services, from our an networks. increase SVOD by international As at primarily was strong attributable $XX increase growth

Moving to EPS.

credits year tax of unrealized the in and planning compared versus in a $X.XX tax third increase and EPS cap net an prior the The tax due quarter, the basis to discrete foreign of On $X.XX related the GAAP period the AOI prior adjusted favorable basis, in was $X.XX year-over-year was shares in period. in and to a was effective outstanding on some investments. GAAP the as repurchase The program. miscellaneous favorable a the strategies increase For year prior investment and year. on reduction a gains reorganization variance equity period a as rate, in compared EPS in our current $X.XX the stock The an to tax and both decrease IP. offset variance by valuation reflected rate the miscellaneous effective in partially to net result increase in primarily of in well an as benefit adjusted a EPS reflected variance

flow. In terms free of cash

of As million $XXX quarter September, healthy months We very total a nine in three interests interest continues significantly as capital expected, generated Tax primarily a resulting for ended and cash $XX content. Working were were also timing receivables was to to were million distributions had in in expenditures $XX $XXX noncontrolling the strong production payments and of of from spending the million company as cash. cash million. free deliver $XX XXXX, nine-month well of flow improved free Through collections sale cash. the amounts months, million. to year-over-year, due delays the advertising related in million. to Capital and $XX

the Turning balance to sheet.

Our the we're ensure ensure that remains the company. financial to take profile pandemic and to continue our we well steps positioned to weather to strong of impact on

sheet to launched Our flow we tender offer. balance have In strong a allow auction and us free Dutch to capital. September, opportunistically mid allocate continued cash

result we we quite of million. amount repurchased repurchase continue and significant tender, significant of this the shares were have a flexibility. as to XX.X with completion We a our Subsequent tender, strong, we pleased in the transaction, remains it of allowed $XXX the which us to As balance sheet the mid-October, completed stocks. for financial million to

produced tenets first, core invest terms In of They of attractive on organically for returns shareholders. allocation, key businesses unchanged. capital and new our that policy our capital in remain business our the four allocation are, projects

to quite long-term business into of services our targeted our well. looking SVOD performing this discussed, area our have positioning. improve been Josh to As And lean we're

business tenet second leverage maintain that to for is Our appropriate is the outlook.

had net Networks billion. and debt of AMC $X.X XX, of As leases September finance

impact times. our mentioned moment offer leverage been our based times. regard leverage the would XX million debt continue for Adjusting have the issues $XXX that pandemic AOI any and at not to a the on Despite business, of ability our ago, LTM service to of to we September our do on tender our with liquidity. ratio or was covenant X.X Our X.X I significant foresee have

return disciplined strategic. Fourth, million. and company $XXX advance to Third, shares million for make acquisitions Year-to-date, XX.X capital opportunistic our to shareholders. repurchased the has

As our the continue you $XXX opportunistic it our program. to vary of available pacing activity, and repurchase existing million we expect should authorization to of under with be Friday, last had quarter-to-quarter. We'll

COVID-XX remains future the of the estimate operations we impact Looking businesses. discussed, our unusually fluid. on previously management performance ahead, challenging it It as for to of ultimate the pandemic our makes quite

of a the fourth quarter. on As our comments investments result, quarterly we the quarter, anticipate variability respect the will focus both the as continued airing specific of timing shows. that content our of pandemic, well as our prospective in to be consequence as of a With and

As per of Networks National revenue at terms advertising. in the

While programming year-over-year results Dead. Walking The continues advertising the a the quarter fourth to improve expected to original by lineup, of be sequentially, of the in airing the in delay timing our including market impacted are

As we fourth the a advertising we the percentage with relatively expect reported in the consistent revenue year-over-year result, to quarter. third quarter year-over-year in be decrease

Networks, respect windows. will As content National anticipate revenue, what of for of improvement timing saw performance With impacted sequential we'll in third of be fourth compared results and to to quarter, the the availability content monetization we and significant the favorable ancillary see licensing year. we by in our revenue as the that the in at distribution quarter the year-over-year our

and Walking Dead. recognize the to in Fear expect of World the quarter, For fourth instance, distribution the from Beyond revenue we international

revenues the continued due comedy in streaming We down quarter, segment, terms to of recorded TV trends remain macro to pandemic. subscribers modestly be fourth expect year-over-year a networks on the an consistent expect our year-over-year. Levity basis the and closed. declines be international international relatively percentage venues other to we we driver be we our the revenue, will quarter by And performance. subscription related percent main to the services growth the our Pay as with revenues impact adverse decrease to of in at third be offset on in anticipate continued as the advertising the In our primarily At in

At company expected be total timing a to due expect increase we to expenses expenses, on the airing primarily are year-over-year, modestly national basis originals. expenses year-over-year. for networks, the our flat relatively As to percent of

airing Other to services. We Walking the growing Soulmates. subscriber drive programming originals, and investment amortization as and At increased Fear SVOD International of World segment, we such gains to the our expect and Beyond expect our for in marketing reflect Dead, programming

has free In flow, our terms of up activity picked production significantly. cash

expect fourth XXXX Assuming to no XXXX significant flow and flow. free the as result flow in characteristics expect a cash quite at of the generate pleased business end of our of activity the cash interruptions cash meaningful to We that don't in remained quarter. pandemic, free in with levels, well excess we

sheet our in to ability So confident overall, we and our about cash free given weather feel strong conclusion, pandemic, to flow. healthy continue the our balance

focus on Operator create get of business questions. advantage positioning. long-term our to positioning would like uncertainty, to of move to of also the open With portion period to Our our further question answer call call. to taking we while remains this we opportunities the and and please through the that that initiatives strategic

Thank you. Nathanson. from comes [Operator our Michael And question of line first the Instructions]

Your line is open.

so it subscribers? just dynamics how I four – Josh, driving picture and original bringing have much Can is you question a originals, those like much. targeted So to Hey for programming, you. to this balance need those I'm Is healthy, the in is trying you keep talk library, look bit need maybe there bit what a a churn? of like? invest a get enough the in Thanks services, the little of about to churn about what Thanks.

Michael. Sure

Acorn, which such deep one, I little have different largest UK for material of discrete has world. bigger a British-oriented been they material same vigorous the range around the of because in share can the is the wide At with has each that library, answer that actually Acorn I a targeted audiences. license. of think a co-producer is the we a and and will them you bit and vast time,

and co-productions. asterisk happens own way, And any is of It we Christie significant in participation intellectual function through library, And that's in property. Acorn that interestingly, that an churn Acorn by to biggest of very America, includes Michael, this. a the the significant service Agatha of among part have, of, So a business lowest the combination subscription sort used And one and I very they it's people it low things: its somewhat material older. demographics availability the is type and stream like, of that people somewhat, dedication significant watch think, and of part, steady although to with material, it two this gives feel is for the programmed-dependent, affinity opportunity put of the part the turn.

has terms such frankly, long characteristics value. extraordinarily and it sorry, I'm therefore you So attractive, giving – in Shudder… Shudder of answer, but lifetime churn you, I'm a a, torment

It’s okay.

movies, [Indiscernible] and different we've interesting. have areas we But illustrative worth it to is co-produce moment. produce, interesting a gets your library good because few do and able very of and also in been Shudder the but

that might monster is AMC service, hit. a then own of which that we And a It we thought and availability was pandemic lauded well. and was like those very for Michael, it is frankly inexpensive it pandemic remotely. regular against audience which target it's the is it, did service in our was enjoyed a was churn, it sort electric a this movie a wide demo dollar material, producing in linear during and with or circles they not high, and on of amongst And movie and threshold Host, Shudder Shudder First, co-produced for the is illustrative, Host you completely, business, called series appreciate audience. horror movie. was done lauded slightly has movie it Creepshow, that rather higher a there a that called the was I

is summarize of a general were lower. nothing to is it compared to a sets a this, It's The are spending about frankly basis. the you league. actually So very It's different economics universe. Netflix, read dollar hour different cetera, that SVODs. like see requirement has I much if attractive of per And different and and the as net it, in et on

have think advanced to our how refined wonderful that I in in. And and audiences And the by target find it's as numbers. capability so those we and a be retain to proven business

wouldn't a say claim leader worldwide I we the in be It's may, nice targeted fact, leader SVODs, while think, targeted it's these in SVODs. worldwide So I the we're make, legitimate. to in

Okay. Josh. Thanks

Thank you.

from comes line of question Cahall. Steven the Next

is open. line Your

just sub Thanks. tracking pricing distribution Maybe that be may Two declines from seem first of me. bit like there's pressure. your in a it to revenue does addition little

like do as to just one, so wondering the then you the wondering we've think launching get life how MVPDs, for price to Walking the about first Dead, legacy come So it's as the us Mad start And repriced think you that's renewing with about up that these final of of if that recently you that's you're was bundles, working you're deal into little Walking available. about And Dead, there they've the libraries pressure conclude that as Men one. logic series as just bit Netflix, networks pivot? digital is the make for delivering I seasons deal? with And seen of your some a second

deal feel downside end to with upside show you do you. licensing does, Thank the sort it So, or that's revenue? that of does reopen And if that more like of your Netflix?

of to the So the the part, and second first answer – first part participate. I'll I'll it the question ask one, first Ed

as There On the done. components, line be and as significant has subscriber rate which moderation different have most through which double the satellite used place, each some distribution factor unfortunately pressure a the know, bunch of our of in licensing well, now. and side, revenue of there AT&T The been revenue is MVPD lowered it is has deal rate it's renewals content you and has been sector, we’re the in particularly affecting taken declines, includes digits, pricing a on through it growth, distribution of moderation growth downward Dish. widely that exposed we've to

as mentioned MVPD our partners. holistic, We my focused in I with relationship remarks, on are a prepared

note off it. AMC architect and carries it Comcast So, what it, Dish Premiere a in was supports supports AMC+, Sling helpful AT&T then and was first called and

top But saw aggregate. with numbers looks six also We're XX on what and the frankly, valuable my are we're four our most was video cable If of you out the retain, recent trying on that they to for we world information are both have So there basic in are we And and subscribers. like we great think services rated in charter, dramas. over correct. frankly, MVPDs. months focused grow XX standard the among focused

sides our a our provider us embracing we're MVPD that house. our are our for sides So high on of integrated the linear nicest offerings. thing quality, and that reliable, stable, house. The we company on see offerings both cherished see they as living both happy the is of And partners SVOD

they lives, more with and are partner. provider in their a SVOD side we as opportunity has allows So video a well-priced that broadband-only the to is side, vigorously with the very business and on on linear them in margin be who the live now

I a So nice ones unique that's in. we second position the that certainly if and produce distinguish question, own to license. first think we To I sort other your of be very we I'll may, them and shows because

because it, Men, our we instance, for de-risk licensed when we didn't into to were we we programming, regional made Mad getting it. So just want

owner the as it. Lionsgate on they of a were partner, took we So and

the we to did, from own XX service So which over it shows done Walking we own Lionsgate. the on license it or Dead, to the of years. past we and put We the eight on AMC+, had majority we've

answer. to shows applicable back the studio. the I'll a may, over licensed not that you as just of likes Stephen, come on may amplify on run it them after SVOD to bit Ed who to Netflix, question if of So If I us because turn their licensing the they do is

Right, Steven.

back and making from several So all years rights, we to Walking us new the revert stop Netflix. the delivering episodes Dead, of after

always Dead, I’d point put Game Thrones And With Walking domestically Dead, with you either XXX you internationally. scratching after we And hours. and it's the that and And continue like in to over that people a show combine share comes there license making be platforms over aggressively to a into league, will like will good to delivering Hulu one. continue them well at XXX the I Sopranos, Fear, then zombie so have are that And hours. that important it rare Walking on aging have freedom them Fear a of use if think then the few demo. which we'll a we because new or licenses is that off stopped it, to years our are

be So show. to people who they want that see always will

So domestically, it for it the have we that license decide or with And we show to few was world, studio as the alluding option if and platforms to about have past license strategy use we a share on it years. around talking we've do that. that dovetails us, our to Josh the been nicely the

splits exploit Rectify AMC+, like other creative shows to literally and to us Catch interest with and up choice are on do. Badlands, we have back the and hours Halt and and them Turn, to So our to in our that of Into are come Fire, hundreds coming or economic

Ed. Thanks

you. Thank

Next question comes from the line Morris. of Michael

is open. line Your

morning. for Two me. you. Good Thank topics

variance do point on have can you customer, Amazon your thoughts specifically also fairly between price basis. percentage Apple the such share the least $X service? say Prime a a why then on And on on you relative customer? Apple and First, and – a Amazon basis or feels an Comcast at high for pricing AMC+ a So on the

and the for over diversify, right maybe as a do revenue over it you've price the there? sort of XXs to company steady term? How do long-term why at considerations the streams of think pretty enjoyed the do that mid-to-high that all in what about – National Thanks. And Networks space So the you compared about what secondly, kind on AOI longer basis range? margin segment then your how other increasingly is you think

Sure.

I'll member services with margin striving of – household is and million looking are we as are a targeted million SVOD a is in service which to do, Ed that I that every cetera, the XX homes, we start homes The with Q&A, have and from characteristics, to programming, something add. really have the species be different I’ll on. an it earlier off, may from in first, SVOD and have So services kids serve they XXX to Michael et expense something is the domestic worldwide unusual kick unusual. mentioned

rate buying attractive million stuff that So the is and run that satisfying costs making level in it something that expense critical, all to aggregate what actually our things. of is and satisfaction we are of They're great indicative they're with decisions put subs base relatively are wit, serve leverage them profitability to scalability these we’re consumers that the in four and who is the very with expense.

years. Now it on now – of going also six-and-a-half, services at marketing, what that's doing it sort On benefit linear seven programming appropriate takes and AMC+ and had the been for programming relatively good shared it's we but – between it is a share SVOD. yet to in we've be both

we party of economically. the SVOD, us we show, the So as third an we for and own proposition is a that outlet also it the replace if attractive for ourselves, enjoy and benefits

So a prediction multiple line have months coming obviously. profile I doubling growth, to diversified our us. SVOD will some make which rate margin subs think, is the radically which sources, be there XX for say And a healthy time not SVOD over a reasonably different revenue underway, fluctuations. the be would top XX same a we revenue in attractive of that one I hope I doubling months wouldn't aggregate out in different we'll from is XX margin already very won't is company, of – period, and any of

Ed. As I offer more to turn I'll will go be other authoritative, he price, your over may, ahead if it it on – relates one I'll to Ed question perhaps

the for of $X.XX. had and really Now we price concept of remind premium, Premiere Sundance that for has price point on available AMC established taking just in and said a And we format. then a Shudder, co-architect Michael, friendly at in Comcast that And commercial-free, binge which point was million it had price that in And Comcast making AMC was $X market point. I'll have market content sort was a a of about Hey, the that you subscribers. a we $X.XX. a exceeded And

as $X.XX lower determined that points and amount be that So, fair of modeling we imagine, premiers migrating points we'll It to at And AMC price those of some price with higher did point. price time. over all a would that you value, was the introductory a of you we've the But viewing the I its early on data help. and with few the little out proving the AMC+ subscribers. days. programming give in Walking to about broad is been compelling Dead very the information weeks model might power there, the offering right If

and the programming And Shudder, genre it's of defense this and Preacher, our Scary Badlands crowd genre content. so when experience the series and such of with like A that shows original the and combine and has of Zombie embraced then lot Creepshow, that broad. we in Witches, we as Comic-Con Into It's into have a The Movies series Discovery and

Sundance of about, combination a the targeted and AMC our the offerings think with we combined it's some of talking higher a It's but hits still SVODs, spot. stealing. sweet a significantly with content Shudder of one I'm So targeted Now product,

is So a hit the to those us great fans our genre to that reverence for aspect Comic-Con for program big have shows.

is track major AMC's the other of The prestige side brand.

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Great. Thank you both.

you. Thank

of question line Next Kutgun from comes Maral. the

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Hi, it's Donna.

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we question, Operator please. time one have last for

Thank you, sir.

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at on joining in can AMC we outset but for call, Well, do the for everyone delay today's Networks. now Operator, the We apologize thank call. your of us you you interest the conclude call. the appreciate

Thank participating. gentlemen, for you and call. today's conference this you, concludes sir. Ladies Thank

day. You may now disconnect. Have a great