Linear Weakness Will Offset Streaming Growth for AMC; Lowering FVE to $30

AMC Networks has transformed its flagship AMC channel from a minor cable channel showing classic movies into a premier prestige platform for original scripted content. The transformation provides the AMC with growth potential, but this growth remains contingent on AMC’s ability to source and cultivate strong original content as well as monetize programs internationally and on streaming platforms. The firm has successfully monetized programs like Better Call Saul with third-party streaming platforms but the launch of AMC+ may lower the price of future streaming rights if the rights are no longer exclusive.