AMC’s hit action-drama, The Walking Dead, has led to proposed commercial advertising rates increases, but there is still “more pricing upside,” according to CEO Josh Sapan.
“We continue to see advertising pricing power for shows like The Walking Dead, which attract large, engaged and desirable audiences,” Sapan stated during a recent first-quarter earnings call. “While costs per thousand viewers in that show particularly have increased, its value as an ad vehicle has not been fully realized, and we think there is more pricing upside.”
“Our horizon for the show is very long,” Sapan revealed when asked how long The Walking Dead can sustain its relevancy. He also stated that the show’s performance was good last season, adding that it is “a great advertising vehicle” and that “it will be a good vehicle for the upfront” and over the next year.
Sapan also highlighted that the show’s popularity serves as a “distinctly powerful” promotional tool for other shows on the network.
When asked if the company plans to limit their original programming, Sapan said, “Our bias is to own shows, and our bias is to do more as long as it is economically reasonable.”
The CEO then stated that AMC Networks will continue its focus on “shows that really matter to people that view them.”
Ed Carroll, AMC Networks’ COO, said that the company looks forward to “significant pricing increases” compared to last year’s average, also noting an increase in the scatter market, where advertising spots sell closer to air time.
Despite the show’s weaker ratings as of late, the average advertisement has managed to sell products very well, according to Carroll.