Yahoo Finance Can AMC remain competitive after 'Mad Men'?
It’s the end of an era for Mad Men, as AMC Network (AMCX) aired the show's final episode Sunday night. The series finale marks another transition for AMC, which must continue to create new hits in a challenging ratings environment.
The loss of Mad Men shouldn’t be a major blow to AMC, notes Yahoo Finance’s Aaron Task. AMC’s Walking Dead is one of the most watched shows on cable television. AMC has also found success with Better Call Saul, a spin-off of its flagship drama, Breaking Bad.
"It's a much more challenging environment now than it was when AMC launched Mad Men about seven years ago," says Task. "HBO (TWX) is now going over the top, Netflix (NFLX) doing original programming, Amazon (AMZN) is doing original programming."
Get the Latest Market Data and News with the Yahoo Finance App
Mad Men was considered to have one of the most affluent audiences, with 53% of viewers aged 25-54 from households with incomes above $100,000. AMC used the show’s demographics to its advantage, charging advertisers a premium for spots.
Shares of AMC Networks have surged over 100% in the last five years. Task adds that networks like AMC need to expand their platforms online for continued growth.
"All these networks now understand that they need to provide the consumer every option possible to consume the content," he says. "You want to watch on your phone, you want to watch at home on your big screen TV...all these networks have come to the realization that this is what they have to do."
