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The onetime American Movie Classics
has for a few years been becoming a general-interest cable network,
complete with commercials and original programs meant to jack up ratings,
all with considerable success.
Though the network’s overhaul was initially frowned on by ardent
classic movie fans, AMC’s evolution has been fairly seamless, not
counting an accounting scandal that emptied its executive suite in 2003,
all while growing ratings to record levels.
Now, with the cable upfront market about to take off,
the network is rolling out more originals and a slew of high-profile
movies that it hopes will catapult it into a top-tier network. Its added
hope is that its viewers’ median age of 52 comes down to something more
appealing to youth-oriented advertisers.
Perhaps most indicative of AMC’s future direction is a deal
signed this week with Warner Bros. for 22 recent theatricals like this
year’s Oscar-winning “Million Dollar Baby” and the upcoming “Batman
Begins.”
Rob Sorcher, senior vice president of programming and
production at AMC, says the network’s move away from old movies toward
new movies isn’t turning off its core viewers.
“What is most important about [this] is that we are not
only expanding our audience, we are also keeping the loyal audience that
we’ve had for 20 years.”
AMC’s primetime audience in May was up 15 percent over last
year, ranking No. 13 with 962,000 viewers.
“AMC experienced a record 2004 and the momentum continues
in 2005 with our best-ever first quarter, April and May.”
The network's identity
With its ratings up and any controversy over its addition of
commercials three years ago having subsided, AMC is now firming up its
move to become a network as much about movies as it is a network with
movies.
“AMC has a long tradition of being the only basic cable
destination dedicated to movies and making movie culture accessible to our
audience,” says Linda Schupack, AMC’s senior vice president of
marketing. “Like our tagline says, AMC is TV for movie people.”
Brad Adgate, senior vice president and corporate research director
at Horizon Media, says the network’s continuing evolution makes sense
for an ad-supported network.
“They’re trying to keep it within a niche, which I think
is smart,” he says. “Despite all the new technology, people are still
going out to see the openings of ‘Star Wars’ and that type of movie.
There’s an unending appetite for it.”
The network's target audience
The relatively high median age of AMC’s audience is
largely a reflection of its continuing but fading focus on old movies.
The network is working to bring down its median
age, 52 years old throughout the day but 50 in primetime, with movies like
“Batman Begins” and original programs such as the recently renewed
review show “Movie Club with John Ridley.”
“Once you start going after advertisers, you’re going to
want a younger audience,” says Horizon’s Adgate. “To get a younger
audience, you have to put on original shows and more recent movies.”
The network's ratings
AMC may have angered a few viewers with tweaks it has made,
but it isn’t losing sleep over it.
In May, its primetime and total-day audiences were up by
double-digit percentages in the 18-49 and 25-54 demographics. In primetime
it was among the 15 most-watched cable networks.
But AMC has recently been struggling to attract younger
viewers. Its 18-34 audience was flat to May 2004, though it was up from a
small base on an all-day basis.
In first quarter, AMC’s total primetime audience and 25-54
audience were essentially flat while it had dramatic increases in other
demographics, including a 35 percent bump among 18-34s.
The network's competitive set
AMC competes with both non-ad-supported networks,
specifically Turner Classic Movies, and ad-supported networks with lots of
movies like TNT, TBS, USA and Lifetime.
What’s new for 2005/06
AMC’s makeover continues this summer and fall with
more original shows and new movies from Warner Bros.
Upcoming programs like talk show “Movies 101” and the
documentary series “Movies That Shook the World” will join a lineup
that already includes talk show “Sunday Morning Shootout” and
Ridley’s show.
AMC is developing a celebrity-focused series with documentary
filmmaker Nanette Burstein.
The network is also keeping a firm foot in classic movies. It
announced a deal this week with Paramount Pictures for 32 John Wayne
movies.
The network's upfront outlook
As AMC gears up for negotiations with media buyers in this year’s
ad market, its catchphrase could be, “Change is Good.”
The network is touting a string of monthly ratings
records along with acquisitions like “Batman Begins” that, in addition
to firming up the network’s current identity, are also bringing it a lot
of press coverage.
The final prognosis
On a scale of 1 to 5, with 5 being excellent: 4.5.
While AMC is continuing to make some major changes, at least
from its original niche, it is retaining its focus on movies.
The network going forward is also likely to bring down the
median age of its viewers while getting a ratings boost from recent box
office hits.
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A LOOK AT
AMC
Launched in 1984 |
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Parent company |
Rainbow Media Enterprises |
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No. of subscribers |
86.7 million homes |
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Median viewer age* |
51.6 years old |
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Average primetime viewers** |
962,000 people |
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Average total-day viewers** |
516,000 people |
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Avg. primetime 25-54 viewers** |
414,000 people |
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Avg. total-day 25-54 viewers** |
222,000 people |
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Target audience |
Adults 25-54 |
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Main competitors |
Turner Classic Movies and
increasingly networks like TNT and USA |
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* Nielsen
Media Research, March 28-April 24, 2005
** Nielsen Media Research, May 2005 |
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