Earlier this week AMC Networks disclosed a large-scale layoff (reportedly 20%) and that their CEO was departing. AMC Networks’ chairman James Dolan said in an internal memo that “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.”

AMC Networks’ predicament typifies what’s happening across the industry. In today’s podcast Colin and I share estimates of what AMC might be earning from its streaming services vs. what it earns from its linear channels distributed by pay-TV operators. Other data we share highlights the conundrum broadcast and cable TV networks face: their assumptions for target pricing for their streaming services and subscriber forecasts are too high.

The monetization disarray AMC and others are experiencing is the messy transition from the pay-TV world that masked what consumers were paying for individual channels and how they were valued vs. the DTC world where consumers are in full control.

Listen to the podcast to learn more (31 minutes, 56 seconds)

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