AMC Networks reported a 4% year-over-year drop in revenue during its second quarter earnings for 2025 on Friday. This decline was largely due to continuing declines in the cable ecosystem, but there was a ray of hope. During the quarter, streaming revenue increased by 12%, owing to price increases from the company’s streaming offerings, which include AMC+, IFC Films Unlimited, Acorn TV, Allblk, Shudder, Sundance Now and Hidive.
Both domestic operations revenues and adjusted operating income for the segment saw a decline of 2% and 19%, respectively. Those declines were in large part due to downward trends in the overall cable ecosystem. Cable subscription revenue decreased 1% year over year, coming in at $320 million. The declining cable landscape also impacted affiliate and advertising revenues. Affiliate revenues dropped 12% to $151 million, which was also partially due to contractual rate decreases. As for advertising revenues, those dropped 18% to $123 million because of both the cable landscape and lower marketplace pricing.
That’s the bad news. The good news is that price hikes led to streaming revenues increasing 12% to $169 million. Content licensing was also up 26% to $84 million, which reflected the sale of the company’s music catalog as well as executive producer fees connected to Apple TV+’s “Silo.”
“We feel really good about the acceleration on the streaming side, both in terms of price and unit,” Patrick O’Connell, executive vice president and Chief Financial Officer of AMC Networks, said during the company’s earnings call. Specifically, he highlighted that Acorn TV and Hidive have resonated with their subscribers. “We’re seeing attractive upticks. Subscribers there could always do better, but we like what we see, particularly the last couple quarters, on those two.”
AMC also saw a 25% increase in digital commitments after the 2025 advertising upfronts. “All signs are pointing in the right direction as we look forward,” Kim Kelleher, Chief Commercial Officer for AMC Networks, said of the advertising revenue.
The company also saw what CEO Kristin Dolan dubbed “continued healthy free cash flow generation.” Free cash flow came in at $96 million, a 0.6% year over year increase. Because of the company’s free cash flow as well as its figures when it comes to streaming revenues and content licensing, AMC Networks increased its free cash flow outlook for 2025. Now the company expects $250 million of free cash flow for the full year.
Here are the quarter’s key results. It should be noted that net income grew so much because the second quarter of 2024 included an asset impairment charge related to when AMC purchased BBC Studios’ remaining stake in BBC America:
Revenue: $600 million, down 4% year over year and compared to $555 million predicted by analysts at Yahoo Finance.
Net Income Attributable to Stockholders: $50 million, up 272% year over year for the second quarter.
Earnings per Share: $0.69, down 44% year over year for the second quarter and compared to $0.61 predicted by analysts at Yahoo Finance.
Subscribers: 10.4 million, the same amount of subscribers the company reported at the end of 2024 and a 2% year over year increase.
The second quarter of 2025 also saw AMC expand further into the FAST (free ad-supported streaming) space with the launch of 11 channels on TCLtv+. Additionally, the company also saw growth in Amazon Prime Video Channels’ streaming bundles, which combines AMC+ with AcornTV, Discovery+, Starz and MGM+.
On the programming side, Acorn TV’s first-ever “Murder Mystery May” drove the biggest month ever for the streamer, leading to what the company described as a record engagement, viewership and a multi-year high in subscriber acquisition. As for the Eli Craig-directed “Clown in a Cornfield,” that movie delivered the largest opening weekend and widest screen count in the company’s history. The title is now available on Shudder.
During the second quarter earnings call, AMC Networks’ executives also expanded on the company’s partnership with the AI company Runway, which has been incorporated into AMC’s marketing and TV development process.
“Runway is just facilitation for us. It’s a tool that allows us to ideate, but the content is ours. Essentially, our goal is to put the best tools in the hands of our creatives,” Dolan explained, emphasizing the partnership is a technical play. She clarified that creators have been using the tool to help them visualize ideas, such as set designs or ambitious shots they wouldn’t be able to afford on a budget. “The relationship there is really to help facilitate our opportunities, to expand our scope, ensure creative alignment and visualize more quickly.”
“In the realm of post production, we’re able to save a considerable amount of money across our 30 to 50 episodes of the television a year because generative AI is so good right now. It delivers 4k imagery priced at anywhere from 20 to 40% of what traditional VFX is,” Dan McDermott, president of entertainment at AMC Studios, said. “We’re not displacing any of these people either. I wanted to be really clear that all of our efforts live, clearly and cleanly, within the parameters established by all the guilds. We’re committed to the principle that everything we do is in support of the people that make these great shows possible. We’re literally just giving them tools that will enhance their ability to do the great work they do.”
