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AMC: More and more
about the movies

Pumping up originals as it seeks to grow younger

By Kevin Downey

   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.


A LOOK AT AMC
Launched in 1984

 

Parent company

Rainbow Media Enterprises

No. of subscribers

86.7 million homes

Median viewer age*

51.6 years old

Average primetime viewers**

962,000 people

Average total-day viewers**

516,000 people

Avg. primetime 25-54 viewers**

414,000 people

Avg. total-day 25-54 viewers**

222,000 people

Target audience

Adults 25-54

Main competitors

Turner Classic Movies and increasingly networks like TNT and USA

* Nielsen Media Research, March 28-April 24, 2005
** Nielsen Media Research, May 2005


June 9, 2005 © 2005 Media Life


- Kevin Downey is a staff writer for Media Life.


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