“We’re paying particular attention to Sundance” because of the campaign to begin folding in commercials — due to take effect toward the end of this year — AMC Networks CEO Josh Sapan told analysts this morning. The company touted Sundance Channel‘s appeal to upscale audiences in its sales pitches to advertisers for the upfront market, and is now negotiating to change the channel’s pay TV distribution agreements. Sundance’s current affiliation deals “had not embraced or expected advertising”, Sapan says. But “we’re at the final stage of that [renegotiation] plan”. While the finances for Sundance remain “a little difficult to model,” the AMC chief says that he wants to maximize ad rates by promoting the channel’s “story-telling genetics” and ability to become “a home for some of the best shows on TV.” That should result in “very high engagement and people who care a lot about them.” AMC has used the drama Rectify, its first wholly owned original scripted series, to lead its campaign to change Sundance’s business model. “The critical reception was extremely strong and we think that signals vitality for the direction the channel is going in,” Sapan says. He adds that AMC helped the series by offering new episodes in movie theaters and on cable VOD ahead of their appearance on the channel’s program schedule. “We tried to get people to watch and refer their friends and others to it and we think there’s been some success.”
AMC Networks Chief Says ‘Rectify’ Helps Sundance Channel’s Effort To Add Ads
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