Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How does the free cash flow outlook relate to cash spending, and what factors contributed to the lower-than-expected cash spend in 2024? A: Patrick O'Connell, CFO, explained that the strategy remains focused on balancing programming investments with profitability. The lower cash spend in 2024 was due to efficient production and content sharing across platforms. The slight decrease in 2025 cash programming spend is attributed to modest reductions in volume and delayed tax credit receivables.
Q: Can you elaborate on the streaming subscriber growth and the impact of bundled partnerships and the Netflix licensing deal? A: Patrick O'Connell noted that streaming subscriber growth was supported by bundled partnerships and the Netflix licensing deal. The company expects continued healthy streaming revenue growth in 2025, driven by price increases and unit volume. The Charter deal is included in the revenue guidance, with more details to come as it kicks in during Q1.
Q: What impact does licensing content to Netflix have on viewership and linear ad revenue? A: Kim Kelleher, Chief Commercial Officer, clarified that the Netflix partnership is not ad-supported. Kristin Dolan, CEO, added that while there's no direct correlation with linear viewership, the Netflix effect has driven significant increases in AMC-Plus acquisitions as viewers seek new seasons of shows they watched on Netflix.
Q: Are there specific projects being sold to third parties, or is content primarily for AMC's platforms? A: Dan McDermott, President of Entertainment and AMC Studios, stated that currently, content is produced mainly for AMC's platforms. However, the studio is open to producing for third parties when financially beneficial. The market remains receptive to AMC's programming, contributing to content licensing revenue growth.
Q: What steps are being taken to balance the decline in linear advertising with digital growth? A: Kim Kelleher highlighted innovations in advertising, such as programmatic buying and cross-platform packaging, to make inventory more valuable and accessible. The introduction of AMC-Plus ad-supported inventory and the upcoming Shudder ad tier are expected to enhance digital advertising growth, gradually offsetting linear declines.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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