AMC Networks Buys 49.9% Stake in BBC America

[Sawyer]

http://deadline.com/2014/10/amc-networks-pays-200m-49-9-bbc-america-859244/

AMC Networks Pays $200M For 49.9% Of BBC America
by David Lieberman

Start now with any jokes about the Walking Dead meeting Dr. Who. This deal, which has been in the wind for months, is now official. AMC Networks paid $200 million and will receive 49.9% of the equity in BBC America and have operational control including affiliate and advertising sales. AMC says it will “run it consistent with BBC’s editorial standards and policies” and will include financials in its quarterly results. BBC America will continue to be managed as a standalone channel. The companies say that they will jointly go after “a number of content investment opportunities.” In addition, AMC will handle US distribution and advertising sales for BBC world news, which is available in more than 30 million homes. BBC Worldwide North America will still be a wholly-owned regional business FOR BBC Worldwide will continue as a wholly owned regional business within BBC Worldwide, focused on program and format sales and co-production relationships, scripted and unscripted production, consumer products, digital and live events.

“A combined AMC Networks-BBC America channel group creates a powerful collection of networks that are among the most critically acclaimed, with distinct dramas and other potent content that creates a deep connection with viewers,” says AMC chief Josh Sapan. “Our content rises to the top on many levels and is particularly well-suited to an era of on-demand viewing and expanding consumer choice.”

The companies have already worked together on productions including Top Of The Lake and Honourable Woman.“Like us, they are committed to the kind of high quality, unmissable content that is already gained BBC America one of the most educated, affluent and tech savvy audiences in all of US television, with a powerful social media following,” says BBC worldwide CEO Tim Davie.

AMC’s deal differs from a previous representation arrangement BBC America had with Discovery: It did not own equity. The combination with AMC should help BBC America at a time when the business landscape is becoming precarious for independent cable channels. Many distributors, eager to cut their programming outlays, are looking to drop networks that appeal to relatively narrow or niche audiences.

http://deadline.com/2014/10/amc-networks-josh-sapan-discuss-future-bbc-america-859321/

AMC Networks And BBC Chiefs On The Future Of BBC America
by David Lieberman

Don’t be surprised if you see AMC Networks and BBC America collaborating on digital projects, films, or events following AMC’s agreement to pay $200 million in cash for a 49.9% stake in the service. “Because the editorial alignment and point of view is so similar in terms of smart, quality, and premium, we think that we will find lots and lots and lots of places to join on things that we are not yet doing today,” AMC chief Josh Sapan tells me.

There will be changes at BBC America. General Manager Perry Simon will leave after a transition period that will run for the “coming weeks,” BBC Worldwide CEO Tim Davie says. “We are looking at roles within BBC Worldwide” for Simon. AMC will appoint his replacement, although Sapan says it hasn’t begun the search process yet. He praises the current team describing it as “an extraordinary group of people whose work speaks for itself there” with several consecutive quarters of ratings growth. “They’ve done a spectacular job.”

Sapan says he has “no prognostication” on how the deal might affect AMC’s earnings. “We think it’s a wise, strategic move for us. It’s economically prudent and puts us – and hopefully BBC America – in a stronger position in the United States” both editorially and for distribution. The AMC chief says he’ll know whether the investment paid off if, over time, ratings and revenues improve at BBC America. The key focus, though, will be content. “You can’t necessarily call that success/failure. But if the material is smart and good and compelling, we will have success.”

Davie adds that the two enterprises “occupy the top four slots of the most affluent audiences watching television” with shows including Mad Men and Dr. Who. They have “a very sensible, growing business plan” but the venture works, in his view, due to “the electricity of premium content and great collaborations creatively.”

Why would BBCA want to forge a partnership if it’s doing so well by itself? Davie says his company made the deal “by choice” because it would be easier to work creatively with AMC. In addition, “there’s no doubt about it that scale is a meaningful metric. But we weren’t looking for scale at all costs.”

Sapan also noted that, as digital and on-demand media grow, there will be a place for “the good stuff and the smart stuff.” BBC productions “are heroic on digital platforms.” The partners vow to protect the current pay TV ecosystem. But “we may find opportunities that enhance that or that join to that.” AMC will promote BBC World News, even though it doesn’t own an equity stake in it. “It is, unequivocally, the best news service in the world and the best news service in the United States,” Sapan says.

The companies also have already started to talk about new ventures. “They finance movies; we have IFC Films. So we have movie sympathy as well as a possibility. They do events of a certain sort and we have interest in doing events. That’s another possibility.”

Kind of surprised that that large of a stake in the network came for only $200 million, but then again, I don't know how any of this **** works, so.

 

[Kaleb]

meh, whatever gets Orphan Black more exposure.

 

[luis4u]

it seem like AMC is just desperate..

 

[THUNDERSTRIKE]

I don't know about this...

 

[Jason Kane]

meh, whatever gets Orphan Black more exposure.

And Intruders.

I just hope they'll give the daytime scheduleling more flavor that isn't Top Gear, Gordon Ramsey and repeating the past 7 seasons of Doctor Who in rotation

 

[TheComicbookKid]

I bet AMC is going to simulcast Orphan Black so it can get more exposure and fill in some gaps in AMC's schedule.

 

[chamber-music]

AMC is co-producing a the remake of Swedish Science Fiction show Real Humans with British network Channel 4 as well.

Seems like AMC is spreading its wings a bit more.

I always wondered why BBC America get the rights to the shows they do.

Good British BBC shows like Line Of Duty and Peaky Blinders they let go to PBS and Netflix.

AMC should totally go after the U.S broadcast rights for the two seasons of Utopia. I know HBO is going to air the remake version at some point but airing the original show would be cool.

 

[TheComicbookKid]

I know Masterpiece get Downton Abbey, dramas, and Sherlock first. I'm not sure what the deal PBS has with the BBC.

 

[Primal Slayer]

Oh lord, AMC are such control freaks and money hungry like no other I hope they don't affect BBCA in a negative way.

 

[Sawyer]

AMC and BBC to co-produce The Night Manager, Starring Tom Hiddleston and Hugh Laurie