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AMC Networks Set For ‘Large-Scale Layoff’ Following Streaming Miscalculation

AMC

AMC Networks is about to join a number of tech and media companies as they prepare to being “large scale layoffs” soon, according to a member sent to the staff by  the CEO of AMC parent company MSG Entertainment, James Dolan.

“It was our belief that cord cutting losses would be offset by gains in streaming. This has not been the case. We are primarily a content company and the mechanisms for the monetization of content are in disarray,” Dolan said in the memo (h/t IndieWire). “We have directed the executive leadership of AMC Networks to undergo significant cutbacks in operations. These will include a large-scale layoff as well as cuts to every operating area of AMC Networks.”

AMC Networks, which is not associated with the movie theater chain, is home to a number of channels such as AMC, BBC America (a joint venture with BBC Studios), IFC, SundanceTV, and WEtv, as well as IFC Films, RLJE Films, and the company’s in-house studio AMC Studios.

Additionally, it is home to a number of streaming platform services as well, such as AMC+, Acorn TV, Shudder (the home for horror creators and horror filmmakers), Sundance Now, ALLBLK, and the anime-focused HIDIVE.

Here is the memo, from IndieWire:

“AMC Networks Community:
As I am sure you are aware our industry has been under pressure from growing subscriber losses. This is primarily due to “cord cutting.” At the same time we have seen the rise of direct to consumer streaming apps including our own AMC+. It was our belief that cord cutting losses would be offset by gains in streaming. This has not been the case. We are primarily a content company and the mechanisms for the monetization of content are in disarray.

It is for that reason that myself and the Board of Directors of AMC Networks have concluded that we as a company need to conserve our resources at this time. We have directed the executive leadership of AMC Networks to undergo significant cutbacks in operations. These will include a large-scale layoff as well as cuts to every operating area of AMC Networks. We of course realize that this will cause significant concern and anxiety for our employees and those who rely on AMC Networks for their livelihood. We do not take this lightly. We will take every step possible to minimize the impact of these actions on our community. However, it is imperative that we begin immediately with this new course of action.

The Dolan Family and the Board of AMC Networks have great pride in the company and products that you have created. This is a confusing and uncertain time in our industry. We are confident that AMC Networks will come through this even stronger. Your executive leadership will follow up with details shortly. We wish only the best for everyone in the AMC Networks community.

Sincerely,
James Dolan

 

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