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	<title>paidContent &#187; IHS</title>
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	<description>The economics of digital content</description>
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		<title>For basic cable, movies fend off cord-cutting, report says</title>
		<link>http://paidcontent.org/2012/06/26/for-basic-cable-movies-fend-off-cord-cutting-report-says/</link>
		<comments>http://paidcontent.org/2012/06/26/for-basic-cable-movies-fend-off-cord-cutting-report-says/#comments</comments>
		<pubDate>Tue, 26 Jun 2012 19:06:52 +0000</pubDate>
		<dc:creator>Daniel Frankel</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[amc]]></category>
		<category><![CDATA[FX]]></category>
		<category><![CDATA[IHS]]></category>

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		<description><![CDATA[As basic cable original series prove to be important product differentiators for over-the-top services like Netflix, some of the networks that produce these shows are actually relying more on high-priced theatrical movie acquisitions to maintain or increase their subscriber counts and drive ad revenue<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=212452&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>As basic cable original series prove to be important product differentiators for over-the-top services like Netflix, some of the networks that produce these shows are actually relying more on high-priced theatrical movie acquisitions to maintain or increase their subscriber counts and drive ad revenue.</p>
<p><a href="http://paidcontent.org/2012/06/26/for-basic-cable-movies-fend-off-cord-cutting-report-says/ihs-cable-movies2/" rel="attachment wp-att-212468"><img  title="IHS cable movies2" src="http://gigaompaidcontent.files.wordpress.com/2012/06/ihs-cable-movies2.png?w=362&#038;h=214" alt="" width="362" height="214" class="wp-image-212468 alignleft" /></a>So says a <a href="http://www.isuppli.com/Media-Research/News/Pages/Movies-Thrive-on-US-Basic-Cable-as-Media-Companies-Shell-Out-Big-Bucks-for-Blockbusters.aspx">report released Tuesday</a> by IHS Screen Digest, which justifies the $20 million-and-above payments currently being made by cable channels like News Corp.&#8217;s FX to license blockbuster film titles.</p>
<p>For its part, FX is the resident spendthrift of the cable spectrum, paying top dollar, for example, to secure first TV window rights for current summer titles like <em>Prometheus</em>, <em>Snow White and the Huntsman</em>, <em>The Dictator, Battleship</em> and <em>Madagascar 3</em> before they even exited theaters. Of the 50 highest-grossing movies of 2011, FX bought first-free-TV-window rights to 28 of them.</p>
<p><strong>Also read:</strong> <a href="http://paidcontent.org/2012/06/21/for-netflix-users-catch-up-tv-viewing-has-a-catch/">For Netflix users, &#8220;catching up&#8221; has a catch</a></p>
<p>And while the network&#8217;s brand has been increasingly tied to original series like<em> Sons of Anarchy</em> and <em>It&#8217;s Always Sunny in Philadelphia</em>, 57 percent of FX&#8217;s air time is consumed by movies, IHS notes, and that&#8217;s driving its growth.</p>
<p>Now accounting for 20 percent of the revenue taken in by News Corp.&#8217;s cable empire, FX has seen income grow from just $279.7 million in 2006 to $460.7 million in 2011.</p>
<p>&#8220;When you look at the ramp-up of ad revenue for FX, as they’ve increased their movie content, they&#8217;ve also increased their ad revenue,&#8221; Erik Brannon, the IHS analyst who prepared the report, told paidContent.</p>
<p>Among networks not devoted full-time to movies (a la Fox Movie Channel), AMC also ranks high for movie reliance. While the network is known for original-series hits like <em>Mad Men</em>, <em>Breaking Bad</em> and <em>The Walking Dead &#8212; </em>now staples in the Netflix streaming lineup &#8212; nearly 80 percent of its air time is filled with movies.</p>
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