(Reuters) – AMC Networks Inc, whose shows include "The Walking Dead," is likely to launch a commercial-free video footage streaming service geared toward millennial TV subscribers, two sources informed about the truth told Reuters today.
Unlike standalone streaming options from Time Warner’s HBO and from CBS Corp (NYSE:CBS), AMC's is exclusively offered to consumers who subscribe to a cable tv television package. AMC is performing this, the sources said, so as to support the traditional tv industry during a period when many younger rrndividuals are increasingly cutting the cord.
AMC is discussing featuring digital-only spinoff shows of that existing programs like "The Walking Dead" and it is considering pricing between $4.99 to $6.99 per month, as per the sources, who cautioned final details are still being determined.
The sources wanted to remain anonymous simply because they’re not in a position to talk to the media. An AMC spokesman declined to comment.
Packaging the service as a possible add-on to existing cable bills allows AMC to curry favor with satellite and cable companies.
"The Walking Dead," the highest-rated show among adults 18-49 over the past five-years, has experienced audience erosion in the seventh season, with ratings down nearly 16 percent with two episodes left. Among viewers overall, in 2010 has fallen 13 percent from recently.
AMC continues to be betting on its popularity with younger, tech-savvy viewers. The network currently has four of the top 10 highest rated shows with adults 25-54 in ad-supported cable, based on Nielsen.
As television networks have trouble with declining advertising sales searching for brands turn to place ads online, selling a subscription-based offering you may also have a method to recoup lost ad revenue. AMC hold an event for advertisers in the future during what is called upfront season, when many U.S. media companies try to sell the bulk of their advertising inventory for an additional year.
As viewers increasingly watch programming themselves time, live TV viewing have has declined over the entire TV ecosystem.
This couldn’t survive initially that AMC offered a streaming-only replacement for consumers. The business has launched Shudder, directed at horror fans, and one for their cable network Sundance. This company boasts an internet application where cable subscribers can see its network with commercials.