AMC Networks And BBC America In Investment Deal

AMC Networks has announced a $200 million investment in the British Broadcasting Company subsidiary BBC America. In return, it has captured a 49.9% stake in the cable network that is home to shows such as ‘Doctor Who’ and ‘Orphan Black’ when they’re shown in the States.

Under the terms of the deal, AMC will get operational control of the network, including affiliate and advertising sales. BBC America will retain 50.1% of the company but has effectively handed over control to AMC, in return for its commitment to run it in line with the BBC’s editorial standards.

Executives at AMC and BBC America regard the move as one of mutual benefit, allowing them both to better provide high quality, attractive content. “We think that we have had some experience and some success with shows like that, and the BBC is probably the greatest resource on the planet” for top-quality content, said AMC Networks President and CEO Josh Sapan.

More: ‘Orphan Black’ and ‘Broadchurch’ to air on BBC America

The deal means that AMC’s already impressive portfolio has expanded. It’s had success in the recent past with shows like ‘Mad Men’ and ‘Breaking Bad’, and has a reputation for high quality, edgy drama. However, it is also able to appeal to niche markets, as it also operates smaller networks such as We TV, Sundance and IFC that attract more specialised audiences. Being able to broadcast popular shows like ‘Broadchurch’ and ‘Doctor Who’ in the States underlines that commitment.

The two companies also have a recent history of collaboration, on shows like ‘The Honourable Woman’. This deal is believed to have emerged naturally through initial talks to work together on more projects in the future.

The current trend in the US entertainment market has been for the big networks to attempt to grow in size. Being able to operate more TV networks is perceived to create more leverage when brokering distribution deals and attracting advertisers. The deal should help AMC to keep ahead of the curve in this respect.