Market Insight

AMC agrees carriage deal with DirecTV Latin America

February 25, 2015  | Subscribers Only


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AMC Networks International is more than doubling the distribution of its flagship AMC channel brand in Latin America via a carriage agreement with satellite platform DirecTV Latin America.

AMC will launch later this month in seven markets across the region: Argentina, Chile, Colombia, Ecuador, Peru, Uruguay and Venezuela. AMC some original programming including the TV series Halt & Catch Fire by AMC Studios as well as movies from MGM, Paramount and Sony and other suppliers. AMC is already distributed to 8.3 million households in Argentina and 2.5 million households in Chile, according to IHS TV Channel Intelligence.

Our analysis

Last year, AMC acquired Liberty Global’s channel division, Chellomedia, significantly enhancing its international channel portfolio. In addition to AMC and Sundance Channel, its Latin America portflolio includes for Chellomedia brands El Gourmet, Casa Club, Film&Arts and Europa Europa. Following the deal, AMC was rolled out worldwide, replacing MGM. Last year, AMC extended carriage deals with pay TV providers in Europe and especially in Latin America. An exception to the MGM rebranding to AMC is Brazil where MGM still operates for the time being due to a lack of agreement between the US media group and local pay TV operators.

International expansion has become a key concern for AMC, with its domestic channel business under pressure. AMC has significantly increased its investment in original series to reduces its dependence on movies as well and to target a younger audience. Although in the US the channel has had success with series like Mad Men and The Walking Dead, the network does not hold the rights to broadcast these series internationally.

DirecTV is the leading satellite platform in Latin America with more than 17 million subscribers in nine markets and is divided in three divisions focusing on specific regions. It is also the majority shareholder in Sky Brasil and owns a 41% of Sky Mexico. According to TV Media Intelligence data, DirecTV is the leading pay TV provider in Argentina with 2.5 million subscribers (up 7% from last year). In Chile, where satellite is the dominant platform with 51% share of the total market, DirecTV is the leading operator reaching 460,000 households, an increase of 21% compared to last year. AMC Networks is looking to capitalise on DirecTV’s extended reach to establish its presence as a pay TV channel provider in the whole region.

Organization
AMC AMC Networks DirecTV
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