• by Wayne Friedman , Staff Writer, 5 hours ago

With all the moves to bundling streaming services, one would not imagine launching a niche streaming service in a mature connected TV (CTV) marketplace is a good idea.

Midsized TV and streaming network group AMC Networks is starting up a new streaming service -- focused just on reality TV -- called All Reality.

If you are wondering about this, perhaps you are not alone. But consider this: AMC had the foresight to launch its service via a large distributor -- Amazon Prime Video -- with others to come.

Still, given the price sensitivity of a maturing consumer base -- especially paying for any extras -- why make this move?

Passionate reality viewers are a major market driver. Consider the popular appeal of the “Love Island” franchise on Peacock, which now has multiple iterations and spinoffs.

In addition, those reality TV shows can be modestly inexpensive compared to expensive scripted fare that may need a much larger audience -- as well as being key for new monthly subscriptions fueling streaming platform growth.

The list of AMC shows includes “Love After Lockup”(all its spinoff shows), “Bridezillas,” “Mama June,” “The Braxtons,” “Growing Up Hip-Hop” and “The Graham Norton Show.”

AMC Networks, like other legacy TV network groups, has seen continued revenue declines -- advertising and carriage fees -- for its networks AMC, IFC, Sundance TV, WE TV, and BBC America. They have little choice but to carve out and re-position much of their content as a premium streaming service, alongside other owned streaming networks.

Right now it says it has 10.2 million subscribers for all its services. For its major AMC+, one estimate shows it has around 3.2 million.

All this would be significantly lower than bigger premium streaming services from major legacy TV network companies which have anywhere from 40 million (Peacock, Paramount+) to 55 million or more (Disney+, HBO Max).

Finding slivers of the marketplace is increasingly more difficult. But believing that mostly owned library content, including that of unscripted programming, that continues to have a loyal audience, why not take a shot?

Unscripted production costs can be anywhere from just 33% or 25% of a scripted series. And shows are increasingly getting heavy social media buzz.

The downside comes that those shows can have higher churn -- with subscribers coming and going.

All Reality is priced well under many ad-supported streaming platforms -- at $4.99 a month.

That’s the reality of the marketplace.