Rogers Inks Multi-Year Deal with AMC - Analyst Blog
March 04 2013 - 12:40PM
Zacks
Rogers Communications Inc. (RCI), the largest
cable operator in Canada has reached a multi year deal with
AMC Networks Inc. (AMCX) that will line up the AMC
Network channels with Roger’s digital cable.
Following the deal, Roger’s digital cable customers can enjoy
AMC’s popular TV series including Breaking Bad, Mad
Men and The Walking Dead in HD format. Additionally,
Roger subscribers will also be able to enjoy new and upcoming TV
series like The Killing, Hell on Wheels and
Low Winter Sun slated for release this year.
The agreement enables customers to view AMC’s original series
across multiple platforms like Rogers on Demand channel and Rogers
Anyplace TV on Demand, soon after the original television. AMC
programs are available to Rogers VIP package customers, while the
SD package customers will get the HD version starting this month.
However, the financial terms of the deal were not disclosed.
The deal marks the end of a dispute between the two companies
over contract renewal. Roger’s digital customers received threats
from AMC over a possible channel black out after the previous
contract between the two expired on Feb 28, 2013. Signing the deal
with AMC is a major achievement for Rogers as AMC has emerged as
one of the post popular inventors of the popular TV series and has
received high ratings for its shows.
Currently, there has been a rise in conflict between programmers
and cable companies over hike in programming fees. Cable companies
like Dish Network Corp (DISH) and
DIRECTV (DTV) are persistently defending any
significant rise in programming fees as it will have a negative
impact on their margins. Moreover, if they manage to pass on the
cost hike to its customers, it could in turn increase their
subscriber loss.
We believe this is a major success for Rogers as it will not
only keep AMC’s popular channels in its portfolio, but will also
stop customer churn, which otherwise could have happened had it
failed to renew the contract.
Currently, Rogers carries a Zacks Rank #2 (Buy).
AMC NETWORKS- A (AMCX): Free Stock Analysis Report
DISH NETWORK CP (DISH): Free Stock Analysis Report
DIRECTV (DTV): Free Stock Analysis Report
ROGERS COMM CLB (RCI): Free Stock Analysis Report
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