A basic view of the AMC Golden Globes Celebration on Sunday, Jan. 13, 2013, in Beverly Hills, Calif. John Shearer, Invision through Related Press
AMC Networks is the most recent leisure firm to announce layoffs — with plans of reducing almost 20% of its workforce within the U.S.
As first reported by The Wall Avenue Journal, this can quantity to roughly 1,700 staff. AMC Networks Chairman James Dolan despatched a memo addressing the layoffs as a product of the altering panorama for monetizing content material.
“It was our perception that wire reducing losses can be offset by positive factors in streaming,” Dolan stated within the memo obtained by IndieWire. “This has not been the case.”
Based on CNBC, the information comes on the heels of CEO Christina Spade stepping down from the position three months after getting promoted. Now, AMC Networks is on the hunt for an additional CEO, most likely an inner candidate.
The corporate is the house to cable networks like AMC, IFC and Sundance TV, but additionally has streaming companies like AMC+, Acorn TV and Shudder beneath its umbrella. As extra prospects are making the change to streaming, the community’s essential supply of earnings is jeopardized. “Quarterly income had fallen 16% to $682 million within the interval ended Sept. 30,” as CNBC famous.
The Hollywood Reporter famous that in recent times, AMC “turned to extra overseas co-productions with short-order originals to stay aggressive.” However issues have modified because the community wrapped up hits like “The Strolling Useless,” “Higher Name Saul” and “Killing Eve” in 2022.
Dolan stated within the memo that that is “a complicated and unsure time” within the trade. He acknowledged that whereas these cuts will likely be a reason for concern and anxiousness for a lot of, the corporate plans to “take each step attainable to attenuate the impression of those actions.”
“Nonetheless, it's crucial that we start instantly with this new plan of action,” Dolan added.
AMC Networks, which isn’t associated to the AMC theater chain, is among the first main gamers within the leisure trade to eye cost-cutting measures. Firms like Warner Bros. Discovery, Disney, Paramount, Apple, NBC Common and Amazon may additionally comply with swimsuit, Insider Intelligence principal analyst Paul Verna instructed CNN.
One of many methods to make a streaming enterprise mannequin profitable is thru the consolidation of assorted streaming websites which is able to permit a handful of firms to cut back their funding prices whereas retaining a number of subscribers with decrease costs, as I reported for the Deseret Information.
“They’ve bumped up in opposition to the fact that it’s a troublesome enterprise and there actually isn’t room for everyone in it,” Verna stated. “It’s simply saturated. And lots of it does get again to the financial system. And, because of this, extra dominoes are going to fall.”