James Dolan Takes The Mic: On AMC Networks Earnings Call, Owner Explains Choice Of His Wife, Kristin, As CEO And Addresses M&A Prospects And Streaming Challenges As Stock Soars

James Dolan, interim executive chairman of AMC Networks, made a rare appearance on the company’s quarterly earnings call with Wall Street analysts, addressing a major exec change and the strategy for facing a complicated operating environment.

Asked about reports of M&A overtures and whether he sees AMC Networks continuing to go it alone or merging with another company, Dolan said the top priority is to make adjustments to enable AMC to make it as a stand-alone business.

At the top of the call, Dolan said his wife, Kristin, was picked as CEO because the company’s board of directors “concluded that she is the best candidate.” The new chief exec (who is separated from James Dolan, though they remain close), had previously been head of advertising analytics firm 605 and a longtime senior exec at Cablevision. She will take the helm on February 27 in the latest major management change at the parent of cable networks like AMC and IFC and a handful of niche streaming services. The company has laid off 20% of its staff and reported weaker results from affiliate sales and advertising. Despite those headwinds, the company topped analysts’ expectations in the fourth quarter, with its earnings prompting a 26% surge in its share price midway through the trading day.

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“Based on Kristin’s considerable operational and executive experience for 30-plus years working in media and entertainment, including her prior history managing subscription-based businesses, the board concluded she is the best candidate for the role.” He added that she has “a strong track record of driving institutional change.”

Speaking of change, James Dolan also highlighted the shift under way from wholesaling to retailing.

“The current mechanisms for monetizing content are not working,” he said. “The content industry needs to reorg itself. we’re seeing this now with most media cos beginning to course-correct to better monetize content and improve the economics of their business. We believe large distributors and programmers will lead the way. AMC will follow. Streaming is a retail business. That’s what [direct-to-consumer] means. For now, as the industry continues to evolve, AMC will focus on streamlining our organization, operating more like retailers than wholesalers, driving cash flow and maintain our strong balance sheet. At the same time, we’ll continue to do what we do best, which is make great content.”

MORE to come …

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