AMC’s Ad-Supported Tier Rolls Out- Here’s the Details

 AMC Entertainment announced last spring that they would be introducing an ad-supported tier to their flagship streaming service, AMC+. Following the broader trend of offering lower-cost subscriptions in return for advertising space, the rollout of this ad-supported tier has finally begun. Check one of the top entertainment law firms Los Angeles from Blake & Wang P.A., Brandon Blake, unpacks the details we have.


                                                                Brandon Blake

A $5 Subscription with ‘Light Ad Load’

Launching at $5 monthly, this represents a significant price reduction from the existing $9 premium tier. Offering ‘no more than’ 5 minutes of ads per hour, it’s easy to see why AMC is hoping this will gain them more subscribers. For now, the ad-supported tier remains a product only for direct-to-consumer platforms, although a wider third-party rollout is promised in weeks to come.

Different Streaming Experience

Unlike several of the streamers we’ve seen swing to ad-supported models in recent months, AMC+ operates as a bundled service, bringing consumers’ content from AMC alongside Sundance TV, BBC America, and IFC. It also includes access to the subsidiary streaming services Sundance Now, Shudder, and IFC Films Unlimited. Current subscriber estimates are in the 11 million range.

 

Unlike many of the larger streaming services we’ve seen adopt this strategy, AMC services a niche market and is making no attempt to try and infringe on the wider, ‘something for everyone’ streaming model of larger companies. With linear on a slow decline, AMC has been exploring other FAST, or free ad-supported streaming, models, too. While its ad revenue for the year-on-year figures declined 17% this year, this was partially offset by a 13% rise in streaming revenue over the same period, so it makes sense that AMC would be focusing on this specific aspect of their business. And advertisers seem keen to invest, at least according to their recent quarterly earnings call.

 

Will AMC be able to leverage the same interest and subscriber uptake as other, larger companies that have launched ad-supported tiers this year? For now, that remains to be seen- but it is certainly a model that’s working well in the streaming environment overall.

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