The announcement of a spin-off to the zombie-infested series comes just in time too. Management at AMC Networks has notably struggled to create new and compelling content that resonates with critics and viewers like its more popular shows currently do. The recently premiered drama Low Winter Sun has been met with lukewarm reviews and rapidly declining viewer ratings. AMC also recently cancelled the series The Killing, which also struggled to retain high viewership totals. Add in the fact that Breaking Bad and Mad Men are close to ending and The Walking Dead spin-off seems to make even more sense. The show, which is tentatively slated for a 2015 release, will bolster AMC’s content lineup when the company needs it most.
Fans and investors who have been paying attention must surely realize that AMC Networks has announced two spin-offs within the last week or so. The first was a new series based on Breaking Bad supporting character Saul Goodman. Not surprisingly, the two spin-offs are based on two of the company’s most successful franchises. Will management try to go three for three by announcing a spin-off of Mad Men? I think the possibility is certainly there and this will remain yet another potential catalyst to propel the company’s future growth higher.
Even though AMC Networks is already projected to grow revenue much faster than larger peers like Time Warner Inc (NYSE:TWX), which is expected to grow revenue at only 4% in the next two years, the company’s growth may still be underestimated. In light of recent developments, current analyst estimates for AMC Networks that call for only 11.65% in revenue growth in 2013-2014 seem too low, indicating that further upside is likely.
The article Will The Walking Dead Spin-off Boost AMC Networks Further? originally appeared on Fool.com and is written by Philip Saglimbeni.
Philip Saglimbeni has no position in any stocks mentioned. The Motley Fool recommends AMC Networks.
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