AMC Networks Inc (NASDAQ:AMCX), which owns the cable channels AMC, IFC, WE tv, BBC America, is planning to a new ad-free streaming service, Reuters reported, citing two sources familiar with the matter.
The commercial-free online video streaming service would be exclusively available to subscribers of a cable TV, according to the report.
AMC is taking this step in order to “support the traditional cable television industry at a time when many younger consumers are increasingly cutting the cord,” Reuters reported.
According to the publication, the entertainment company is in talks about featuring digital-only spinoff shows of its programs like “The Walking Dead”.
Consumers will have to pay $4.99 to $6.99 a month for the service, according to the sources, who wanted to be anonymous.
Based in New York, AMC Networks is an entertainment company with a market capitalization of $3.9 billion.
In addition to the cable channels, the company also owns SundanceTV; the art house movie theater IFC Center in New York City; the independent film company IFC Films; and the horror-themed streaming service Shudder.
AMC was originally launched in 1980. Formerly known as Rainbow Media Holdings, a subsidiary of Cablevision, AMC was spun off as a publicly traded company in 2011. It is majority-owned and controlled by the Dolan family, according to Wikipedia.
Shares of AMC Networks Inc (NASDAQ:AMCX) were up 0.66% in the after-hours trading session. The stock has been performing so far this year. It is up over 10% year-to-date. During the last six months, the stock has gained nearly 10%. However, during the last 12 months, shares have dropped 9.85%.
AMC Networks Inc (NASDAQ:AMCX) received a consensus recommendation of “Overweight” from 19 ratings firms that are covering the firm. The consensus average target price is $64.33. On Friday, the stock was trading at around $57.60.
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