Industry Insider: AMC Networks Leans Into Streaming Momentum While Managing Linear Declines In Q3 2025
AMC Networks reported third-quarter 2025 earnings with a clear message: the company is in the process of transitioning from a traditional cable-network business to a modern, streaming-first media operation. CEO Kristin Dolan emphasized that the quarter was "a key milestone" in this long-term transition, citing accelerating streaming revenue, continued free cash flow strength, and a financial profile that is becoming more resilient in an uncertain media landscape.
Although total net revenue fell 6% year-on-year to $562 million, AMC Networks continues to shift toward a model that is less reliant on cable subscribers and linear advertising. Streaming, bundled partnerships, and international licensing all played important roles in offsetting losses on the legacy side of the business. The company also reported significant debt management actions, program renewals, and new series developments, all of which support its strategy to remain competitive in a crowded TV market.
The quarter's most notable performance highlight came from AMC's streaming portfolio. Domestic subscription revenue remained flat year-on-year at $316 million, but the stability stems from two opposing forces: declining linear affiliate revenue and strong streaming momentum. Streaming revenue increased by 14% to $174 million, driven primarily by price increases across services such as AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE.
The number of streaming subscribers increased by 2% to 10.4 million, up from 10.2 million the previous year. This expansion was aided by several strategic distribution developments. Ad-supported AMC+ has continued to gain traction on Charter's Spectrum platform, with over 850,000 customers using the service since its launch. AMC also expanded its long-term partnership with DirecTV, which now includes six AMC FAST channels and select streaming options within DirecTV's genre bundles.
In addition, AMC signed a significant licensing agreement with Netflix for "The AMC Collection," which expands international access to a curated slate of AMC Studios original content. The company also launched a new triple bundle with Amazon Prime Video that includes AMC+, MGM+, and Starz at a discounted rate, which aligns with industry-wide bundling trends aimed at reducing subscriber churn and increasing engagement. Overall, these initiatives propel AMC toward a diverse streaming ecosystem fueled by a variety of revenue streams, including direct subscriptions, licensing, FAST distribution, and third-party platform bundling.
AMC Networks, like its major TV peers, continues to bear the brunt of the collapsing traditional pay-TV ecosystem. Affiliate revenues fell 13% to $142 million due to a drop in basic subscribers and contract-related rate reductions associated with recent renewals. Advertising revenue also fell 17% to $110 million, driven by lower linear ratings and weak marketplace pricing.
These declines are consistent with ongoing industry pressures, but they also highlight why AMC's leadership is aggressively prioritizing streaming partnerships and international licensing. Domestic content licensing revenue fell 27% to $59 million during the quarter due to timing and delivery availability issues, demonstrating how unpredictable the traditional windowing cycle can be.
Overall, Domestic Operations revenue decreased 8% to $486 million, and segment Adjusted Operating Income declined 25%. Despite this, AMC maintained a strong 23% AOI margin, signaling disciplined cost management as the company shifts toward a leaner operating model.
AMC Networks' international business was one of the few areas with top-line growth this quarter. Total revenue rose 5% to $77 million, due in part to favorable foreign currency translation. Without the currency benefit, revenue would have been down 1% year on year.
International advertising emerged as a bright spot. The segment's revenue increased by 15% to $26 million thanks to strong performance in the United Kingdom and Ireland, as well as FX benefits. Subscription revenue decreased by 1% to $48 million, reflecting the non-renewal of a distribution agreement in Spain last year.
Segment Adjusted Operating Income fell 12% to $12 million, confirming that while international revenue has stabilized, profit pressures remain due to rising costs, subscriber renegotiations, and content investment requirements.
On the programming front, AMC continued to invest in franchises and premium storytelling that are consistent with its brand as a curator of genre-forward, prestige-leaning television. The company debuted Anne Rice's Talamasca: The Secret Order, expanding its franchise Anne Rice’s Immortal Universe, which has become one of AMC's most valuable long-term IP assets following the success of Interview with the Vampire and Mayfair Witches.
AMC also completed production on The Audacity, a new series written and produced by Jonathan Glatzer, who has previously worked on Better Call Saul and Succession. The series will premiere on AMC and AMC+ next spring. The company also renewed Irish Blood, Acorn TV's most successful series to date, for a second season. Acorn TV remains a reliable engine for AMC's targeted streaming strategy, which is based on catalog depth, British and international drama, and loyal, niche audiences. These projects reinforce AMC's reputation for character-driven, fan-focused programming while also demonstrating why the company continues to prioritize franchises and long-tail library value.
Despite revenue pressures, AMC generated $42 million in free cash flow during the quarter and is on track to deliver $250 million for the year. While this is down from $54 million in the same quarter last year, the company emphasizes consistent cash generation as a key advantage during the transition.
AMC also executed several significant debt and balance sheet moves:
Amended its credit agreement, extending $111.8 million of revolving commitments to 2030.
Repurchased and retired $165.7 million of Term Loan A borrowings.
Repurchased $9.2 million of its 4.25% senior notes due 2029 at a $1.5 million discount.
While AMC did not repurchase any shares during the quarter, it still has $125 million in authorization remaining under its long-running buyback program. As of Friday, October 31, 2025, AMC had approximately 32 million Class A shares and 11.5 million Class B shares outstanding. These moves reflect a company focused on reducing leverage, managing maturities, and preserving optionality as the industry evolves.
AMC reported diluted EPS of $1.38, compared to $0.76 in the prior year. The growth was largely influenced by debt extinguishment gains and lower interest expense. Adjusted EPS, which removes these one-time impacts, declined to $0.18 from $0.91.
Adjusted Operating Income fell 28% year to date, reflecting margin pressure in both domestic and international operations. Despite these declines, AMC remains confident in its full-year financial outlook, which is supported by strong cash generation and continued streaming revenue growth.
Dolan reiterated that AMC has built “a modern media business that is nimble, independent and well suited to today’s environment and whatever comes next.” The message suggests that the company is aware of its challenges, but is determined to create a scalable, multi-platform model that will thrive as linear TV continues to decline structurally.
AMC Networks’ third quarter 2025 results underscore a complex, but increasingly clear narrative. The company has moved decisively to reshape its business around streaming, FAST, and global licensing while maintaining strong cash generation and disciplined financial management.
Though declines in linear advertising and content licensing weighed down total revenue, AMC’s streaming performance, bundling strategy, and IP-driven programming slate indicate that the company is steering toward long-term sustainability. Its strategy differs from that of larger conglomerates, which rely on blockbuster franchises or large subscription bases. Instead, AMC is focusing on niche fandoms, prestige content, and strategic partnerships to increase reach without overspending.
As the media landscape evolves, AMC's reputation as a targeted, risk-aware, and audience-focused company may become its most valuable asset. Whether this formula can deliver long-term growth will be the story to watch in 2026.
