Companies are starting to find out just how quickly coffers will run dry when you wage war against the streaming giants of the world. For example, AMC Networks is laying off several staff members in an attempt to cut losses.
According to a memo from James Dolan, CEO of MSG Entertainment, (via IndieWire), the company that owns AMC and AMC Networks, plans are in place for "significant cutbacks in operations" and "large-scale layoff[s]."
Here's an excerpt of the memo reportedly addressed to AMC Networks staff members:
It was our belief that cord-cutting losses would be offset by gains in streaming. This has not been the case. We of course realize that this will cause significant concern and anxiety for our emplyoees 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.
AMC Networks saw its CEO, Christina Spade, step down in September. Spade was less than three months into the role where she was expected to last through 2025. The exit resulted in AMC Networks' stock dropping by 6%.
2022 was an excellent year for AMC as it saw several of its most-watched shows enjoy peak viewership as they reached their conclusion. AMC's most-watched show, The Walking Dead, has finally ended after more than a decade of dominance. Other popular AMC shows that called curtains this year include Better Call Saul and Killing Eve. But, now that the said trio is no longer, there's a certain hint of uncertainty surrounding what else AMC has to offer. We doubt the plethora of The Walking Dead spin-offs, both confirmed and rumored, are enough to keep eyes glued to the platform.
Looking ahead, AMC is betting on Interview With a Vampire, Mayfair Witches, Invitation to a Bonfire, and Echoes, to steady the storm while it waits for its next big hit. If things don't get better, AMC's stock, which has already dipped 40% this year, will drop further.