AMC Is Pursuing Multiple Strategies to Stay Relevant but Suffers From Lack of Scale

AMC Networks is a subscale media competitor with a portfolio of linear networks and streaming services and a production studio. The firm is deploying an “all of the above” strategy to distributing its programming, and we think that gives the firm its best chance in a difficult environment. We expect AMC will be challenged to independently reach a mass audience in an environment where consumers are overwhelmed with numerous streaming services, most of which have broader and deeper content than AMC can provide. AMC also must continue to find and create attractive programming, which should be increasingly difficult in an industry that now has more and much larger competitors.