AMC Networks is expanding its streaming services on The Roku Channel, adding 11 free ad-supported streaming channels. This includes an exclusive “AMC Showcase” channel, which will feature original dramas from the network like “Mad Men.”
Terms of the multi-year agreement were not disclosed upon AMC’s announcement Thursday.
The pact also calls for AMC Networks HIDIVE anime service launch as a premium subscription on Roku at a future date, which was not revealed.
“This is an exciting expansion of our relationship with one of our most important and long-term partners,” said Kim Kelleher, chief commercial officer of AMC Networks, in a prepared statement. “It also serves our strategic goal of distributing and windowing our high-quality content across a coordinated ecosystem that includes our own networks and streaming services and leading partner platforms.”
Roku vice president for programming Rob Holmes said, “We are constantly working to enhance our programming portfolio to meet the needs of our users.”
AMC Network, parent of IFC, Sundance TV and We TV, originally launched on Roku in November 2020.
The announcement comes the day before AMC Networks is scheduled to report its third-quarter financial results. The company ended the second quarter with 10.8 million of its own streaming subscribers.
Roku said Wednesday it added 2.3 million subscribers in the three months ending Sept. 30, bringing it to 65.4 million active accounts worldwide, as revenue rose 12% year-over-year to $761.4 million – even as it posted a net loss of $1.22 million, or 88 cents per share, for the quarter amid an industry-wide advertising slowdown.
While that topped Wall Street’s expectations, the company warned it doesn’t expect the same for the current quarter.
“As we enter the holiday season, we expect the macro environment to further pressure consumer discretionary spend and degrade advertising budgets, especially in the TV scatter market,” the company said in the earnings letter to shareholders. “We expect these conditions to be temporary, but it is difficult to predict when they will stabilize or rebound.”
In morning trading, Roku shares tumbled $4.05, or 7.5%, to $50.27 following the disappointing outlook. The stock has plunged 82% in the past year.
AMC Networks shares were down 80 cents, or 3.7%, to $20.94, pulled down with the broader market.
