AMC Networks Announces Ad-Supported AMC+ Tier

AMC is about to have its die-hard fans tiering up. Ahead of the company's in-person upfront on Tuesday at New York's Jazz at Lincoln Center, AMC Networks is revealing several new offerings. In addition to expanding its Content Room and unveiling Audience+, its new, cross-platform targeting service, the company is announcing an upcoming ad-supported version of its AMC+ streaming service. "The No. 1 thing that drove that decision was giving the viewers the choice that they asked for," Kim Kelleher, chief commercial officer of AMC Networks, told Adweek about the new ad tier. "They want choice and flexibility in pricing, and that should be something that we can facilitate." Kelleher said, though she's pushed for the ad-supported tier for years, the timing is right as the service has grown its user base to a point where a new iteration makes sense, and viewers are continually looking for flexibility in their streaming platforms. AMC Networks Names Kim Granito New Chief Marketer "That's ultimately what led to the decision. Then, obviously, rounding out our ecosystem, which is very robust of linear, our CTV and digital strategy with very focused audiences we have in our SVOD services—not only AMC+ but our targeted services as well," Kelleher said. "This is like the Holy Grail of inventory." The new tier will debut by October, giving customers more options and allowing the company's ad partners to reach viewers on its flagship streaming product. Though the company isn't ready to announce pricing, the platform will be a two-tiered model (ad-supported and ad-free), and, unlike other services which have lesser quality experiences on lower tiers, Kelleher notes that the experiences will be "replicas" of each other. "We are not going to penalize the ad-tier subscribers, meaning we are not using this as a step-up product. So we're not going to make your experience on purpose so bad that you have to step up," Kelleher said. "That's not our intent." For instance, targeted streaming services Shudder, IFC Films Unlimited and Sundance Now that are accessed through the AMC+ bundle (as opposed to being purchased individually) will also be included in the ad-supported tier, extending buying reach across the products, which are focused on horror, independent film and international drama. Regarding ad formats, Kellher noted that, like most ad-supported launches, there won't be overwhelming inventory at the start, with the product having a "sponsorship model initially." There will be exclusivity for some categories and a light ad load that will be bespoke to the programming. "We have some movies that will have mid-roll and pre-roll. We will have some movies that will not," Kelleher said. "We're going to try to maintain the viewer experience in all of the decisions." Making room for its Content Room Keeping the viewer in mind, as well as the advertiser, AMC is also building out its Content Room strategy, expanding its existing slate of programming with touchpoints across linear, streaming and CTV platforms. The production unit provides several benefits to the company, consumers and marketers. In addition to owning all the IP from its Content Room, AMC is using its programming and high-profile talent to keep fans interested between seasons and allow brands to get involved. Among the highlights, the Emmy-nominated series Cooper’s Bar, starring Rhea Seehorn, is returning for a second season in October and expanding from its first season short-form format to 30-minute episodes that will premiere on the linear network IFC before moving to other platforms. Additionally, the upcoming six-part short-form series Night Island will serve as the first time AMC's Anne Rice universe will collide, premiering across all of AMC's digital, streaming and linear platforms in the fourth quarter of 2023. "These shows are workhorses for our partners because they're built to create elasticity for them to get involved in, for us as schedulers because they're great retention play and for the fans because it's something that they didn't even know was out there," Kim Granito, head of marketing for AMC Networks, said. "They're always delighted to see someone like Rhea Seehorn show up in a series that's so outside the world of Better Call Saul, and Colman Domingo shows up in between seasons of Fear the Walking Dead. It has proven to be fruitful for us for a number of business verticals." And within its growing content ecosystem, the company is also bringing more capabilities to marketers looking to reach its audiences. Reaching audiences anywhere AMC has teamed up with data and analytics firm 605 to create a new Audience+ insights and data targeting service, allowing partners to identify and reach viewers across all of its ad-supported distribution platforms. The offering was designed to respond to changing viewer habits, with cross-platform capabilities across linear and digital, enabling addressable advertising everywhere AMC content is watched. "The cross-platform part for us is extremely important because this is also the culmination of all of the addressable development work that we've done over the past three years to enable an advertiser to truly develop an audience profile that they want to target and reach and make sure that they can reach that audience across any platform," Evan Adlman, executive vice president of commercial sales and revenue operations for AMC Networks, said. Adlman said the decision to make AMC+'s ad-supported model have the same content as the ad-free model plays into the company's cross-platform strategy, with targeting being available across the company's networks and programming. Whether advertisers want to reach specific audiences in big premieres such as Lucky Hank or show up in another live linear episode, Adlman explained that "none of that content is held back." "There are different demographics today that live within different platforms of where our content is, but the ability to actually deliver a single message unduplicated across live linear video on demand, and all of our CTV streaming inventory is unique," Adlman said. It's all about giving marketers flexibility, which Adlman said extends to measurement, adding, "We are ready and willing to work with our clients in whatever measurement tests or trials that that they prefer or want to begin using." Keeping DEI promises And in a year where a soft ad market has companies weighing their investments, AMC is making its DEI initiatives a priority. "I can't imagine anything more mortifying than abandoning initiatives that were so important two and a half years ago," Kelleher said. "So we're actually leaning very hard into this, and it will be a big part of our upfront." The company launched Avenue, a dedicated division built to help partners reach diverse and underrepresented audiences, in February 2022, and AMC said the initiative has grown ever since. Along with that, the company is giving clients opportunities to reach diverse audiences through its partnership with the Harlem Cultural Festival. The festival, which is featured in Questlove's Oscar-winning documentary, Summer of Soul, is returning to Harlem this summer for the first time since 1969, and AMC is playing a pivotal role. "We are doubling down on our investment in the Harlem community and a really big way. We are the official sales partners of the festival," Granito said, adding that the company will be leveraging its platforms and doing stunts on air. As a final message to marketers, and with the company's new ad tier and cross-platform capabilities in mind, Kelleher noted that while many media companies try to be "everything to everyone," AMC strives to be "everything to someone, anywhere they want."

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