AMC Networks has some issues after ongoing legal battles with The Walking Dead creator, and a CEO exit after three months, more downsizing has been announced.
AMC has put out hit television shows with The Walking Dead, Breaking Bad, and Mad Men leading the charge. What was once blockbuster ratings week in and week out during their initial air times, has turned into a flood of problems. But lately the network has run into a myriad of issues that spell trouble, and with net losses, AMC Networks Chair James Dolan brought more bad news of downsizing coming to the network, he said “The mechanisms for the monetization of content are in disarray.”
Dolan continued to say it is a “confusing and uncertain time in our industry,” with “It was our belief that cord-cutting losses would be offset by gains in streaming,” according to Bloomberg, regarding their latest foray into an individual streaming service costing users $8.99 a month.
AMC Networks continued in a public statement “We have determined we need to conserve resources at this time,” including “this will involve cutbacks in operations which unfortunately includes a large-scale layoff, impacting approximately 20% of our employees in the U.S.” The Wall Street Journal reports regarding its 1000 large employee count, which equates to around 200 effected.
CEO Christina Spade has also exited the company after only recently taking up the position, with a provided severance to the tune of $10 million for her long three-month tenure. AMC Networks also doesn’t have a successor in line to take her place. This continues a trend of high-ranking executives being appointed to the position and stepping down after short periods, with Josh Sapan and Matt Blank serving as CEO in interim.
It is also worth mentioning that over the past half year, AMCX on Google’s Market Summary common stock has fallen by near 50% as this post is made. With no end to trouble in sight, fans will just have to stay tuned into what happens next.