American entertainment giant AMC Networks is planning to launch a free video streaming service aimed at millennial cable TV subscribers, industry sources claim, as reported by Reuters. The Internet TV service would feature no advertisements and wouldn't be available as a standalone package, the report states. Insiders believe that the New York City-based company is planning to launch the service to promote cable TV among the demographic that's most likely to cut the cord, adding that AMC is currently considering financing spin-offs of its popular series like The Walking Dead that would be available exclusively through the upcoming Internet TV platform. The company reportedly still hasn't decided on the price of the service but is said to be considering charging a monthly fee of between $4.99 and $6.99. AMC would charge the fee on top of its customers' cable bill but has yet to determine the details of its upcoming service, the report reveals.
The unconventional business model that AMC might utilize could theoretically allow it to cater to both satellite and cable companies, as well as young people who are considering cutting the cord. The entertainment giant would likely promote its offering with exclusive content related to its existing franchises, many of which are still extremely popular among young, tech-savvy users who are more likely to scrap a cable subscription in favor of Internet TV. However, it remains to be seen whether the idea is viable seeing how people who pay for video streaming services are usually doing so instead of paying for a cable subscription, and not in addition to it. Regardless, AMC might be tempted by the concept due to generally diminishing advertising sales that it's experiencing alongside other major TV networks in the country, all of which are currently exploring options for improving their revenue streams.
AMC already introduced several streaming platforms like Shudder and is already streaming its offerings online, but it remains to be seen whether it's capable of commercializing the idea outlined above. Even if the company boosts the hypothetical service with some exclusive programming, the platform would still primarily contain non-exclusive content which might not be enough to convince consumers to pay a subscription fee.