AMC Global Media (AMCX) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Economic and Operational Risks24% rewritten

Risks Relating to Our Business

1. 02Our business depends on the appeal of our programming to our U.S. and international viewers and our distributors, which is often unpredictable and volatile25% rewritten
2. 03Our programming services' success depends upon the availability of programming that is adequate in quantity and quality, and we may be unable to secure or maintain such programming
3. 04Increased programming costs have adversely affected and may continue to adversely affect our profits
4. 05Changes in the operating environment of multichannel distributors, including declines in the number of subscribers, could have a material negative effect on our business and results of operations24% rewritten
5. 06Our programming networks depend upon agreements with a limited number of cable television system operators and other MVPDs. The loss of any significant distributor could have a material adverse effect on our results of operations
6. 07Our efforts to attract and retain streaming subscribers may not be successful, which may adversely affect our business
7. 08Advertising market conditions in specific markets have caused and are expected to continue to cause our revenues and operating results to decline significantly in any given period24% rewritten
8. 09We are subject to intense competition, which may have a negative effect on our profitability or on our ability to expand our business29% rewritten
9. 10affiliated programming network on a more desirable tier, thereby giving their affiliated programming network a competitive advantage over our ownNew
10. 11Our ongoing changes in business strategy, including decisions to make investments in new businesses, products, services, technologies and other strategic activities, could have an adverse effect on our business, financial condition or results of operations
11. 12We may not be able to adapt to new technological developments, including new content distribution platforms and the growing use of AI, or to changes in consumer behavior resulting from these new technologies, which may adversely affect our business45% rewritten
12. 13Consolidation among cable, satellite and telecommunications service providers has had, and could continue to have, an adverse effect on our revenue and profitability
13. 14Theft of our content, including digital copyright theft and other unauthorized exhibitions of our content, may decrease revenue received from our programming and adversely affect our businesses and profitability27% rewritten
14. 15We are, and may in the future become, subject to litigation and other legal proceedings, which could negatively impact our business, financial condition and results of operations
15. 16We have recognized, and could in the future recognize, impairment charges related to goodwill and other intangible assets23% rewritten
16. 17We face risks from doing business internationally
17. 18We face continually evolving cybersecurity and other technology-related risks, which could result in the disclosure, theft, destruction or misappropriation of, or access to, confidential information, disruption of our programming, damage to our brands and reputation, legal exposure and financial losses24% rewritten
18. 19The interruption or unavailability of third-party facilities, systems and/or software upon which we rely may have a material negative effect on our business, financial condition and results of operations
19. 20If our technology facilities fail or their operations are disrupted, or if we lose access to third party satellites, our performance could be hindered
20. 21The loss of any of our key personnel or artistic talent could adversely affect our business
21. 22Our business is limited by United States regulatory constraints which may adversely impact our operations
22. 23Our businesses are subject to risks of adverse regulation by foreign governments
23. 24Economic and financial problems in the United States or in other parts of the world have in the past adversely affected and could in the future adversely affect our results of operations23% rewritten
24. 25We derive substantial revenues from advertisers, and these expenditures are sensitive to general economic conditions and consumer buying patterns. Adverse economic conditions have in the past adversely affected advertising rates and volume, which has resulted in a decrease in our advertising revenues67% rewritten
25. 26Fluctuations in foreign exchange rates have had and could have in the future an adverse effect on our results of operations
26. 27We rely upon cloud computing services to operate certain aspects of our business and any disruption of or interference with our use of these services would impact our operations and our business would be adversely impacted
27. 28Our operations and business have in the past been, and could in the future be, materially adversely impacted by a pandemic or other health emergency31% rewritten
28. 29We may not be successful in achieving sustaining or improving operating expense reductions and might experience business disruptions associated with restructuring and cost reduction activities
29. 30Our inability to successfully make investments in, and/or acquire and integrate, other businesses, assets, products or technologies could harm our business, financial condition or operating results
30. 31We may have exposure to additional tax liabilities26% rewritten
31. 32A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale31% rewritten

Risks Relating to Our Debt

1. 33Our substantial long-term debt and high leverage could adversely affect our business21% rewritten
2. 34We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
3. 35We may not be able to refinance our indebtedness on favorable terms, or at all. Our inability to refinance our indebtedness could materially and adversely affect our liquidity and our ongoing results of operations
4. 36Some of our outstanding debt is based on variable rates of interest, which has resulted and could in the future result in higher interest expenses in the event of an increase in the interest rates39% rewritten
5. 37The agreements governing our debt contain various covenants that impose restrictions on us that may affect our ability to operate our business
6. 38Despite our current levels of debt, we may still be able to incur substantially more debt. This could further exacerbate the risks associated with our substantial debt
7. 39A lowering or withdrawal of the ratings assigned to our debt securities by rating agencies may increase our future debt issuance costs and reduce our access to capital
8. 40We may not have the ability to raise the funds necessary to settle conversions of our 4.25% convertible senior notes due 2029 (the “Convertible Notes”) or to repurchase the Convertible Notes upon a fundamental change
9. 41The conditional conversion feature of the Convertible Notes, if triggered, may adversely affect our financial condition and operating results
10. 42The fundamental change repurchase feature of the Convertible Notes may delay or prevent an otherwise beneficial attempt to effect a change of control of the Company

Risks Relating to Our Controlled Ownership

1. 43include the amendment of some provisions of our certificate of incorporation and the approval of fundamental corporate transactionsNew
2. 44As a result, the Dolan Family Group, which includes the Excluded Trusts, also has the power to prevent such issuance or amendment
3. 45We are a "controlled company" for the purposes of The NASDAQ Stock Market LLC ("NASDAQ"), which allows us not to comply with certain of the corporate governance rules of NASDAQ
4. 46Future stock sales, including as a result of the exercise of registration rights by certain of our stockholders, could adversely affect the trading price of our Class A Common Stock
5. 47Our overlapping directors and executives with the Other Entities may result in the diversion of corporate opportunities to and other conflicts with the Other Entities and provisions in our governance documents may provide us no remedy in that circumstance