AMC Networks recently announced that 42 million dollar deal was made to take full control over BBC America. According to Deadline, this announcement was released in the company’s third quarter and granted AMC the 50.1% they hadn’t received before. The deal had closed back on November 1. BBC America has been a major asset by providing original series such as Killing Eve and Orphan Black into AMC’s streaming portfolio..
By assuming full control, AMC Networks gains greater flexibility in programming decisions, distribution strategies and overall channel management. Like the cable sector, AMC will frequently use roadblock programs that span various media, from academic programs to content-blocking apps.
According to Deadline, it was noted in the third quarter release that the deal will consist of “$132.9 million of redeemable noncontrolling interest related to BBC America, and reflected on the condensed consolidated balance sheet, would have been eliminated. Additionally, the company’s future contractual programming commitments to BBC Studios would have been significantly reduced.” Furthermore, it was added in the statement that in the future, “AMC Networks will no longer be making any related cash distributions to non-controlling interests.”
According to Deadline, BBC America, since its release back in 1998, has not participated in any events in licensing revenue that the UK broadcast relies on but instead gathers affiliate fees and advertising revenue, but both options were declined during a long-term decline in the network. With streaming becoming a major focus in most media, leaving regular cable networks in the dust, this new movement will surely have an impact.
Overall, this new progression will allow AMC to strengthen its position as a leading provider of premium content, expand its reach to a global audience and further improve the quality of television in the world. This will also allow for more flexibility and increase production in decision making and synergy between other AMC Network properties.