AMC Networks Inc (AMCX): Breaking Good

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Growth through new technology
Perhaps one of the company’s greatest potential drivers of growth is something that is rarely mentioned: The possibility of offering a streaming service, similar to Time Warner Inc (NYSE:TWX)‘s incredibly popular HBO GO service. While Discovery Communications Inc. (NASDAQ:DISCA) recently made news when it announced intentions to eventually allow subscribers to view select content online via a monthly access fee, I believe AMC Networks Inc (NASDAQ:AMCX)’s lineup of content is much better suited for a paid streaming service. There is much more demand among viewers to try to get caught up with the popular drama series that everybody seems to be watching at the moment. The potential is huge because it would open up an entirely new revenue stream for AMC Networks Inc (NASDAQ:AMCX) by giving them the ability to further monetize its popular shows before they fall under contract with other streaming services like those of Amazon.com, Inc. (NASDAQ:AMZN), and Netflix, Inc. (NASDAQ:NFLX). While non-traditional media companies like Amazon.com, Inc. (NASDAQ:AMZN) and Netflix, Inc. (NASDAQ:NFLX) are busy trying to create original content of their own, the former recently tested five new pilots and the latter has found success with its original show House of Cards, AMC Networks is well ahead of the competition with an already exhaustive content lineup that can easily be put to work and made more available via a streaming service.

Breaking good
The massive success of AMC Networks’ content offerings has propelled the company higher in recent years, with shares up more than 80% since September of 2011. Thanks to what is shaping up to be one of the most talked about series finales in Breaking Bad, a final season of Mad Men in 2014, the likely continued success of The Walking Dead and a plethora of new scripted and unscripted series in the works, the company is projected to grow at a feverish pace, with revenue and EPS expected  to grow 11.65% and 45.65%, respectively, in 2013-2014. As long as the company can remain a leader in creating popular and compelling content, the future looks very bright for AMC Networks.

The article AMC Networks: Breaking Good originally appeared on Fool.com and is written by Philip Saglimbeni.

Philip Saglimbeni owns shares of Discovery Communications. The Motley Fool recommends Amazon.com, AMC Networks, and Netflix. The Motley Fool owns shares of Amazon.com and Netflix.

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