AMC Networks CEO Josh Sapan said providing some of its owned and U.S.-made programming to its international content company Chellomedia could help drive ratings and affiliate fees at the recently acquired unit.
AMC purchased Chellomedia in February for about $1 billion, giving it a suite of networks distributed in more than 390 million homes in 138 countries.
At the Sanford Bernstein Strategic Decisions conference in New York Thursday, Sapan said AMCN has a three-pronged strategy for Chellomedia– including realigning some of the channels to include space for some of its U.S.-produced shows.
Sapan said the intention of the realignment will allow AMC Networks to “ultimately begin to export some of the shows we make in the U.S. to the appropriate channels we bought.”
That is already happening – its SundanceTV shows like Rectify and the The Red Road have already made their way to some Chellomedia channels.
“The plan and the opportunity is to take our owned, made TV shows and instead of selling them to third parties, in selective instances, sell them to ourselves,” Sapan said, adding that U.S.-produced shows like Hell on Wheels, has sold “extremely well globally. We think we have the opportunity to put these shows on and have a global platform for the TV shows that we are making in the U.S. That can strengthen the channels, ultimately give them more affiliate pricing power and allow us to develop the ad rev stream, which in the Chello channels, I would say was pretty dramatically underdeveloped.”
Stronger programming should help the Chellomedia networks capture a greater percentage of the advertising pie, Sapan added. He said Chellomedia currently has less than a 20% share of the advertising market in its markets, a number that suggests there is room to grow.