With all the problems AMC has with its TV producers, maybe it should just sell more advertising and make more money for everyone.
Now, we are learning that "Breaking Bad" is
coming to a short end -- just another 16 episodes. This after news that AMC's other award-winning show, "Mad Men" may also make a somewhat earlier exist, maybe going just one more
season.
AMC started as an old-movie network, with no advertising. Then in recent years, it opened things up a bit, allowing marketers to buy some traditional advertising time. But AMC still
doesn't offer nearly the kinds of advertising inventory of other cable networks, which can run up to 17 minutes of non-program time per hour.
The financial numbers are a mystery. For
the first three seasons, "Mad Men" only pulled in around $2 million on average for its entire 13-episode season. By way of comparison, a typical broadcast TV drama can pull in $2 million to
$4 million in advertising revenues for one episode.
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We know hour-long dramas cost $2 million to $4 million an episode to make. So, where is the money coming from? Affiliate fees? Subscriber
revenue? Hmmm...
Seems many AMC shows have had some protracted negotiations. Financially speaking, has it been any coincidence that both "Breaking Bad" and "Mad Men"
have gone on extended hiatus from time to time? That saves money, for sure
Now, as a public company, one can only guess these type of negotiations will only be more pressured. You can imagine it' different financial prospective for AMC -- not quite a full
ad-supported TBS, not quite an HBO.
Media buyers will tell you AMC can get broadcast-like CPMs for key 18-49 viewer and other groups -- at least for its original airings of its big shows.
Add into is this price premium for some of the special brand entertainment extras some marketers get especially on "Mad Men." But total advertising marketing revenue levels are at a
different level. (In part because of still lower overall ratings). That makes its affiliate revenue component all that more important.
The positive: AMC still does well by its viewers and
TV marketers with limited advertising clutter. The negative: TV creators have a lot of complaints.
There's an old theory that artists are given leeway to moan and complain because that
tension works its way into better TV shows. At least that's what AMC has going for it: a bunch of really great shows, also including "The Walking Dead" and "The Killing."
TV producers and other creatives will
tell you they love the work on cable -- especially getting creative freedoms they can't get elsewhere. But a better advertising component seems to be needed -- which might seem to involve an
adjustment with cable operators.
Right or wrong, modern entertainment consumers are used to entertainment advertising -- in the minutes before theatrical movies start, and when watching
streaming TV networks show on the likes of Hulu. All that means some cable networks could do more.