Television consumption is undergoing a seismic transformation. Viewers are increasingly abandoning traditional cable subscriptions in favor of on-demand, internet-delivered streaming services. This shift isn't anecdotal—it’s quantifiable, and the latest financial disclosures from AMC Networks offer hard proof. In its most recent earnings report, the company confirmed a decline in cable TV network revenue, underscoring the accelerating pace of cord-cutting—a term that describes consumers canceling pay-TV services in favor of online alternatives.
This trend isn't just changing how people watch television—it's reshaping the entire media business model. In this article, we’ll examine the financial toll on legacy television networks like AMC, dissect emerging viewing habits, and consider how the industry is adapting in response. What does this mean for the future of traditional cable? Let's take a closer look.
Cord-cutting refers to the practice of consumers discontinuing traditional pay-TV subscriptions — primarily cable and satellite — in favor of internet-based streaming options. This shift has moved from fringe behavior to a mainstream trend, driven by both technology and changing viewer expectations.
In 2015, fewer than 16 million U.S. households were without cable or satellite TV. By the end of 2023, that number more than doubled to over 40 million, according to Leichtman Research Group. Traditional pay-TV subscriptions dropped by approximately 7.4% in 2023 alone — marking the steepest single-year decline on record.
Major providers like Comcast, Charter, and DirecTV collectively lost over 5 million subscribers in 2023, based on consolidated earnings and industry estimates. No segment of the cable TV marketplace has remained untouched, including premium packages, basic bundles, and regional affiliates.
Americans under 35 are far less likely to maintain a cable or satellite subscription. A 2023 Pew Research Center survey found that only 16% of U.S. adults aged 18 to 29 had traditional pay-TV access. By contrast, 54% of those 65 and older still subscribed, revealing a stark generational divide in media consumption.
This younger demographic is deeply native to streaming platforms, using mobile devices and smart TVs almost exclusively for content. Their viewing behavior focuses on flexibility, cost efficiency, and instant access — all areas where cable providers fall short.
Inflation, stagnant wages, and housing costs have pressured households to reevaluate monthly expenses. Cable bills, which often exceed $100 per month when bundled with internet and premium channels, represent a high-impact target for cuts.
The result: a compounding decline in cable subscribers as consumers weigh the rising cost of traditional TV against cheaper, customized digital options.
Legacy cable television networks are experiencing a consistent and measurable downturn in revenue as cord-cutting accelerates. Total traditional pay-TV subscriptions in the U.S. dropped to 55.5 million in 2023, down from 76.2 million in 2017, according to Leichtman Research Group. This represents a 27% subscriber loss over six years—a rate that continues to steepen annually.
As a result, advertising dollars are shifting. Television ad spending in the U.S. fell 2.6% in 2023 year-over-year, landing at $61.3 billion, according to Magna. Viewers migrating to streaming platforms have forced advertisers to chase fragmented audiences across digital ecosystems rather than relying on linear TV buys. This reallocation hits general entertainment networks the hardest, including mid-sized players like AMC Networks.
Subscription revenues, historically the foundation of cable network income, have faced sharp attrition. Fewer households are paying for bundled cable packages, and those departing are not being fully replaced by streaming-only customers. While some networks offer their own over-the-top options, the revenue per user in digital channels remains substantially lower than in traditional MVPD arrangements.
SNL Kagan estimates that U.S. basic cable network subscription revenue fell from $47.8 billion in 2018 to $39.1 billion in 2023—a decline of nearly 18%. Declines are forecasted to accelerate beyond 2024 as legacy carriage agreements expire or are renegotiated under tougher economics.
AMC Networks posted a 16% drop in domestic distribution revenue in Q1 2024 compared to the prior year, according to its quarterly filing. Linear affiliate revenue—a key metric derived from pay-TV subscriptions—plunged due to subscriber erosion and rate pressure from cable operators. Specifically, domestic distribution fell from $489 million in Q1 2023 to $411 million in Q1 2024.
Advertising revenue also declined 11% year-over-year in the same quarter, driven by lower linear ratings and a reduction in nation-wide scatter market demand. Despite double-digit growth in streaming revenue under its AMC+ banner, overall revenue still contracted—underscoring the imbalance between shrinking cable income and expanding digital streams that haven't reached scale.
National advertisers are increasingly directing budgets to social, mobile, and connected TV instead of traditional channels. This migration erodes the CPM value once assigned to linear inventory. In Q1 2024, eMarketer predicted that U.S. CTV ad spending will grow to $28.8 billion by the end of the year, up 22.4% from 2023, at the expense of cable’s flat-to-declining ad projections.
Linear-only cable networks now sit in a revenue squeeze: declining audiences reduce their negotiating power, and shifting brand priorities direct ad spending toward high-engagement digital video with clearer attribution. AMC Networks’ results exemplify these headwinds. Subscription losses and lower ad yields are no longer cyclical—they’re structural.
AMC Networks closed fiscal 2023 with clear signs of cord-cutting pressure on its traditional operations. Reported annual revenue reached $2.68 billion, reflecting a 16% decline from 2022 figures, where the total stood at $3.19 billion. This sharp drop did not come as a surprise—executives had previously signaled a contraction in traditional pay-TV revenue was inevitable.
During the Q4 earnings call, CEO Kristin Dolan addressed the structural headwinds: “While linear subscriber declines are accelerating, we are advancing our transition to a mixed-distribution model focused on digital expansion and monetization.” She cited the company’s disciplined cost management and growing streaming footprint as evidence of adaptability.
AMC Networks continues to reallocate resources toward emerging revenue channels. The company’s streaming strategy—anchored by AMC+, Acorn TV, Shudder, and Sundance Now—has attracted over 11.4 million paid subscribers as of December 2023. That marks a 5% increase year-over-year, despite growing competition from larger platforms.
At the same time, AMC has ramped up international content licensing deals and has extended multi-year agreements with platforms like Roku, Amazon Channels, and Comcast’s Peacock to expand reach beyond traditional cable. Investments in differentiated content, such as franchise extensions of The Walking Dead universe, aim to drive engagement across digital properties while reducing dependence on declining cable bundles.
Streaming services have reshaped the entertainment business, expanding faster than any other content delivery model in recent history. Netflix, Hulu, Disney+, and AMC+, among others, now dominate digital media consumption. In Q4 2023, Netflix reached 260.3 million global subscribers, up from 231 million in Q4 2022 — a year-over-year increase of roughly 12.7%, according to the company’s earnings report. Disney+ posted similar momentum with 149.6 million global subscribers as of December 2023, rebounding strongly after subscriber losses earlier in the year.
Compare that trajectory with traditional pay TV: U.S. cable and satellite providers collectively lost over 5.9 million subscribers in 2023, based on data from Leichtman Research Group. That’s a 10.2% drop from the prior year, and the steepest annual loss rate to date. As streaming services scale, legacy platforms continue shedding viewership and revenue.
The shift in consumer behavior isn’t just about subscriptions—it’s equally about engagement. Nielsen’s December 2023 streaming snapshot shows that streaming captured 38.1% of total TV usage in the U.S., outpacing both cable (29.2%) and broadcast (23.5%). Platforms like YouTube and Netflix held the top two slots, combining for over 14% of all TV time measured that month.
This isn’t a seasonal blip. The Audience Measurement firm confirms a sustained upward drift: in 2020, streaming accounted for just 21% of total viewing. In three years, the segment has nearly doubled its share.
Traditional cable is no longer the default. A May 2023 study by Deloitte revealed that 56% of U.S. households now subscribe exclusively to streaming platforms—completely cutting the cord. That figure was 47% in early 2021. Increasingly, viewers construct custom bundles from services like HBO Max, Amazon Prime Video, Peacock, and AMC+ rather than paying for bloated cable packages.
The data leaves little room for ambiguity. The streaming revolution isn't a trend—it’s the dominant direction of media consumption. AMC Networks, facing declining traditional revenue, aligns with this trajectory through strategic investment in AMC+ and digital-first programming. As audiences continue to flee cable, services that prioritize flexibility, personalization, and on-demand content strengthen their grip on the market.
Linear programming no longer sets the pace. Viewers now dictate how and when they consume content. The rise of on-demand streaming has flipped the traditional model—over 70% of U.S. adults reported in 2023 that they prefer watching television content on their own schedule, according to Pew Research Center findings. Scheduled broadcasts can't compete with the flexibility that streaming platforms offer.
Binge-watching has moved from niche behavior to mainstream habit. Netflix's own data shows that over 60% of its users regularly binge-watch shows, often completing seasons within days—or even hours—of release. Story arcs built for continuous viewing outperform episodic storytelling in engagement metrics.
Consumption isn't confined to the TV screen. Mobile devices, tablets, and laptops account for a growing share of total video views. A 2023 report from Deloitte's Digital Media Trends survey revealed that 53% of Gen Z and Millennial respondents watch TV shows and movies primarily on smartphones or tablets. Traditional television sets, while still dominant among older generations, are losing ground fast among younger cohorts.
Smart TVs have tried to bridge this divide by integrating streaming platforms, yet multitasking behavior—watching on one screen while scrolling on another—has fractured attention and dispersed viewing environments.
Audiences no longer assemble for network primetime; instead, they gravitate toward content tailored to their specific interests. Sci-fi thrillers, prestige dramas, anime, culinary reality series—genres that once served side roles now drive subscriber growth for platforms like Hulu, Crunchyroll, and Apple TV+.
Original programming plays a key role here. AMC's own success with titles like Breaking Bad and The Walking Dead previously positioned it as a cable powerhouse. But as viewers expect exclusive content on-demand, platforms increasing budgets for originals significantly outperform those relying on syndicated TV or broad-appeal programming.
Algorithms curate, personalize, and recommend content with precision. Platforms like Netflix, Disney+, and Amazon Prime Video rely on data-driven interfaces to suggest content, retaining user engagement and increasing watch time. Personalized home screens, predictive search tools, and preview thumbnails aren't frills—they shape what gets watched.
Interactive features also play a role. Features like "Skip Intro," "Next Episode," and even real-time feedback loops influence viewing sessions and reduce friction. These subtle design choices can add up to dozens of additional viewing hours per user annually.
How are these behavioral shifts pressuring legacy networks like AMC? Continue to the next section for a detailed breakdown of strategic responses from traditional media companies.
Major television networks now operate under a drastically altered revenue landscape. As cord-cutting accelerates, linear TV no longer delivers the consistent returns it did even five years ago. Networks built for decades on cable bundling models face eroding ad sales, shrinking affiliate fees, and falling viewership for legacy programming.
According to Nielsen, live TV consumption dropped 12% year-over-year as of Q1 2024, while streaming saw a 30% increase in viewing hours. In parallel, S&P Global’s 2023 data shows that U.S. cable network revenues declined 9% overall, with companies like AMC Networks reporting sharper revenue contractions. That shift has forced long-established media firms to overhaul their operational priorities.
Executives are betting on their own digital future. Most networks now operate or license a streaming platform—either as a standalone service or bundled into larger ecosystems. AMC+, launched as part of AMC Networks’ transition strategy, joins fellow distributors such as Paramount+ and NBCUniversal's Peacock in attempting to claw back viewer engagement through direct-to-consumer offerings.
The pivot extends beyond launches. Several firms have invested in programmatic advertising and proprietary ad tech stacks to optimize yield in addressable streaming environments. Warner Bros. Discovery, for example, has merged data analytics with advertising operations to extract incremental value from targeted ad inventory across platforms.
M&A activity also reflects this urgency. Disney’s absorption of Hulu into its core streaming interface and recent bids to acquire full ownership consolidate user bases and simplify content exposure in a fragmented attention economy.
Every migration decision made by consumers translates into quantifiable cuts on balance sheets. Traditional distributors lose carriage fees per subscriber loss, which compounds with decreasing revenue from commercial blocks sold during live broadcasts. For AMC Networks, domestic distribution revenue fell by 16% year-over-year in 2023, with executives citing “a significant decline in linear subscriber counts” as the root cause.
Networks managing high-cost cable operations now carry excess infrastructure while their cash flow shifts to lower-margin digital ventures. This inefficiency injects financial strain and compresses earnings forecasts, triggering debt restructures and tighter cost controls.
Internal talent models are evolving quickly. Media firms are shifting headcount away from traditional linear programming and toward digital-first roles. Think software engineers, data scientists, user experience designers, and algorithm specialists—today, these experts shape how content is distributed and monetized.
In contrast, legacy departments overseeing scheduling for cable slots or coordinating syndication have contracted. ViacomCBS cut over 400 linear media roles in 2023 during its restructuring, while boosting hires in streaming analytics and app development by over 30% in the same year.
Where once networks won through broadcast real estate, they now compete through user engagement metrics, concurrent stream counts, and monthly active users. That cultural reset is reshaping every layer of traditional media operations.
Revenue in the streaming ecosystem stems from two primary models. On one side stands the subscription-based model (SVOD), where users pay a recurring fee for ad-free content access. On the other, the ad-supported model (AVOD) offers free or lower-cost access, but monetizes user attention through advertising placements.
Each approach attracts distinct audience segments and carries unique revenue dynamics. SVOD platforms prioritize retention and content value. AVOD services emphasize audience scale and advertising yield.
Netflix has historically championed the subscription-only model, capturing over 260 million global subscribers as of Q1 2024, according to company filings. This approach delivers predictable revenue streams and avoids user friction from ads. However, in late 2022, Netflix introduced a lower-priced ad-supported tier in response to slowing subscriber growth and market saturation.
Hulu and Peacock take a hybrid approach. Hulu offers both ad-supported and commercial-free plans, earning from both advertisers and subscribers. Peacock, NBCUniversal’s platform, leans toward an ad-supported focus, integrating ads even in its premium tiers to maximize monetization.
As cord-cutting accelerates, AVOD emerges as a pragmatic solution for reaching price-sensitive users. According to eMarketer, more than 58% of U.S. digital video viewers watched AVOD content in 2023, a share projected to rise steadily. Cord-cutters seeking content continuity without high subscription fees now account for a growing portion of AVOD consumption.
Brands gain direct access to fragmented audiences while platforms layer advertising insights with content personalization. These dynamics make the ad-supported route compelling for both media firms and marketers.
AMC Networks employs both monetization formats to stabilize earnings amidst cable revenue erosion. Its premium streaming platforms, such as AMC+, follow a subscription model, while select content distribution through FAST (Free Ad-Supported TV) channels and partnerships introduces advertising revenue streams. This blended approach allows AMC to respond to market shifts while maintaining direct-to-consumer relationships.
Rather than choosing a single model, AMC Networks leans into flexibility—capturing viewers willing to pay for uninterrupted experiences, while also engaging broader audiences aligned with ad-supported formats.
Throughout the last three years, the media landscape has seen a surge in strategic mergers and acquisitions, reflecting a direct response to declining cable TV network revenue. In 2022, the $43 billion merger between WarnerMedia and Discovery created Warner Bros. Discovery, forming one of the largest global media conglomerates. That deal combined theatrical, cable, and streaming operations across HBO Max, Discovery+, and dozens of cable networks, signaling a united front against streaming giants like Netflix and Disney+.
By May 2023, speculation intensified over a potential merger between Paramount Global and Warner Bros. Discovery. Although the talks didn’t finalize into a deal, they amplified the trend: legacy players are moving closer together to attain economies of scale, streamline content distribution, and bolster their subscriber bases.
Smaller and mid-sized players, lacking the scale individually to compete head-to-head with titans, have opted for strategic collaborations. One such example is Comcast and Charter Communications’ joint venture, established in April 2022, to build a streaming platform leveraging Comcast’s Flex technology. Rather than separately pursuing costly innovation, these companies pooled resources to distribute smarter, faster streaming products.
International operators have mirrored this approach. In Europe, Viaplay, RTL, and ProSiebenSat.1 have consolidated market positions and expanded streaming services, forging pan-regional content alliances to fuel subscriber growth.
With fewer players controlling a larger share of content pipelines, one direct result has been a shift in programming strategy. Larger conglomerates often prioritize high-performing franchises and proven IPs, reducing investment in niche, experimental content. While this guarantees stable returns, it narrows the creative risk-taking seen during the golden age of prestige cable TV dramas.
Competition has also bent toward vertical integration. Studios like Disney and Warner Bros. now release content directly on their platforms, bypassing traditional distributors and weakening smaller operators. This vertical stacking reinforces market dominance but limits third-party access to premium content libraries, raising questions about long-term content diversity.
AMC Networks has not pursued megadeals, but it has formed focused partnerships to strengthen its niche. In 2021, AMC acquired Sentai Holdings, the parent of anime distributor HIDIVE, marking a push into a fast-growing genre with loyal digital audiences. That acquisition expanded AMC’s portfolio into high-engagement verticals beyond traditional scripted cable programming.
The company also deepened licensing agreements with streaming platforms such as Roku and Amazon Prime Video Channels, ensuring wider distribution of its programming in fragmented digital ecosystems. AMC’s strategy revolves around genre-focused networks, direct-to-consumer expansion, and modest acquisitions, rather than full-scale consolidation.
Who wins in this consolidation wave? Companies with deep intellectual property libraries, global reach, and direct-to-consumer fluency are already pulling ahead. Yet firms like AMC prove that niche focus and agile strategy still allow room to grow—even as cable TV earnings fall further behind.
Television networks, once reliant on broadcast schedules and linear programming, now operate within a digital-first framework. Over-the-top (OTT) platforms and video-on-demand services use cloud-based systems for content distribution, enabling global scalability and instantaneous access. AMC Networks, along with major studios, has been investing heavily in transitioning away from linear broadcasting infrastructure in favor of digital ecosystems that support cross-platform delivery. This shift redefines operational models from content acquisition to audience engagement strategies.
Broadcasters now make content decisions based not on executive intuition but on segment-specific performance metrics. Analytics tools evaluate audience preferences across device usage, watch time, completion rates, and genre segmentation. AMC Networks, for example, analyzes OTT consumption patterns from its services like AMC+ to identify time slots, episode lengths, and tonal shifts that boost engagement. Advertising models also benefit—data provides granular targeting capabilities that traditional ad buying lacked.
Long-form episodic storytelling faces competition from creator-driven content. Platforms like YouTube and TikTok have fractured traditional attention cycles, especially among viewers aged 18 to 34. In 2023, TikTok users globally spent an average of 58 minutes per day on the app, according to Statista. This level of engagement impacts traditional networks, forcing them to adapt with companion content, social promotion strategies, and snackable spin-offs that mirror the immediacy of short-form video. AMC Networks has experimented with digital-first series and episodic previews optimized for mobile viewing environments.
Machine learning algorithms now inform everything from trailer creation to personalized ad delivery. AMC Networks utilizes predictive analytics to match viewers with relevant programs based on viewing history and browsing behavior. Artificial intelligence enhances customer segmentation, increasing conversion rates for AMC+ by tailoring both content discovery and subscription offerings. Additionally, AI-generated metadata improves searchability, enabling personalized viewing queues that mirror user tendencies in real time.
This pivot from traditional programming models to data-optimized, AI-supported operations continues to redefine what media companies produce, how they deliver it, and whom they reach. The acceleration of cord-cutting forces legacy networks to operate as digitally fluent entities—with content strategies designed for fragmented, algorithm-governed ecosystems.
Analysts tracking the pay TV sector anticipate a sharper contraction in traditional cable subscribers. According to MoffettNathanson, the U.S. pay TV industry shed over 7.3 million subscribers in 2023 alone—a 10.2% year-over-year decline. This pace exceeds even the aggressive projections set in previous years. The trajectory heading into 2025 shows no indication of flattening; market models now forecast fewer than 50 million U.S. households subscribing to traditional pay TV by the end of 2026, down from 100 million in 2014.
Investment priorities reflect this shift. Cable operators like Comcast and Charter are diverting capital from legacy infrastructure toward fiber-to-the-home (FTTH) upgrades and digital platforms. For example, Comcast’s 2023 capital expenditure on video infrastructure dropped 12% year-over-year, while broadband investments rose 8%. The goal is no longer to reinforce the shrinking cable base but to support long-term internet and digital content delivery strategies.
Not every element of pay TV is eroding at the same speed. Premium cable bundles anchored by live sports, breaking news, and real-time events continue to resist full subscriber attrition. ESPN, Fox Sports, and regional sports networks still command high-value ad slots and carriage fees. Nielsen data shows that among the top 20 most-watched broadcasts in 2023, 17 were live sports events. This dominance preserves a shelter for networks that own exclusive rights—at least for now.
Consumers fragmented the bundle over the past decade; now, paradoxically, market forces are driving re-consolidation. Streaming services are beginning to mirror traditional pay TV packaging. Disney+, Hulu, and Max are offering joint subscriptions. Amazon has started aggregating third-party channels inside Prime Video through its "Channels" program. That’s not accidental—it’s a clear attempt to re-create the aggregation value of cable for a digital-first audience.
Can the industry create a new bundle that actually aligns with modern viewing behaviors? That’s the open question. One thing remains clear: subscribers are rejecting legacy models, but they’re still signaling demand for frictionless access across platforms, content types, and pricing tiers.
The pay TV model is not dying—it’s mutating. The cable bundle may be gone, but the economic logic behind it continues to adapt.
AMC Networks’ recent earnings reflect a media sector at a crossroads. With basic cable subscriber numbers slicing downward year after year and streaming services grabbing larger shares of audience attention, AMC’s slipping cable TV revenue isn’t an outlier — it’s a signal.
The company's third-quarter 2023 report revealed domestic distribution revenue fell by 16% year-over-year. Affiliate revenues, which include fees from cable and satellite TV providers, dropped largely because of the continued acceleration in cord-cutting. At the same time, its streaming platforms — including AMC+, Shudder, and Allblk — registered an increase in subscriptions but struggled to fully offset the cable losses. This tells a clear story: growth in digital isn’t yet fully compensating for old-world declines, but it’s the only visible path forward.
Media companies tethered to the cable business model can’t delay digital transformation without consequence. Meanwhile, players that commit to aggressive re-strategizing — blending premium original content with compelling user experiences — are gaining traction. HBO Max, Paramount+, and even newcomers like FAST (Free Ad-Supported Television) platforms demonstrate that there's room to carve competitive positions with creative business models.
Licensing deals, diversified monetization, smarter ad tech, and scalable distribution partnerships — that’s the new terrain. AMC Networks has made moves, but the scale and urgency still lag behind digital-native rivals. Innovation isn’t optional; those who don’t evolve will fade from relevance in a landscape being quickly redrawn by on-demand expectations and fragmented audiences.
Understanding that TV services must mirror user flexibility — not the other way around — forms the foundation of survival, not growth. Want proof? In 2022, U.S. traditional pay-TV penetration dropped below 50% for the first time, according to Leichtman Research Group, as more viewers elected to stream instead of sticking with basic cable. That trend has only accelerated through early 2024.
The decline of cable TV doesn’t suggest entertainment itself is disappearing — only that where, when, and how it’s delivered demands a radical rethink. Media companies choosing reinvention over nostalgia will define the winners of this decade.
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