CNN’s Evolving Media Landscape and Subscription AmbitionsCNN’s Evolving Media Landscape and Subscription Ambitions In 2022, CNN faced setbacks with its streaming service, CNN+, which was discontinued shortly after its launch. However, the news network is determined to adapt to the changing media landscape. Under CEO Mark Thompson, CNN is implementing a “one newsroom” strategy, merging traditional television and digital news gathering into a single entity that will serve all platforms. This consolidation will result in job losses for approximately 100 employees. CNN plans to launch a subscription service for CNN.com later this year, featuring premium content behind a paywall. Simultaneously, a free, ad-supported channel will offer CNN originals and other programming. Thompson acknowledges the decline in cable viewership and the need for CNN to establish a strong digital subscription model. He draws inspiration from his success in implementing a subscription model at The New York Times. While the details of CNN’s subscription service remain unclear, Thompson emphasizes the importance of delivering high-quality video news experiences on mobile platforms. He also recognizes the growing consumer perception that news should be free, despite the success of paywalls at publications like The Wall Street Journal. Thompson’s vision for CNN involves finding new ways to deliver news to audiences, leveraging popular digital formats to create a differentiated and monetizable product. The ultimate success of CNN’s subscription ambitions remains to be seen as the media landscape continues to evolve.
In 2022, CNN attempted to launch a subscription streaming service called CNN+. But it fell victim to corporate M&A when new parent company Warner Bros. Discovery shuttered it after less than a month. The venerable news network is trying again.
In January, CNN CEO Mark Thompson, on his 100th day on the job, laid out plans for the news network’s evolution in a memo. One of Thompson’s goals would be to combine all of CNN’s newsgathering operations into a single entity that would operate the network’s TV, streaming and digital platforms, according to The Wall Street Journal.
According to a report from Deadline, this project is now in motion with a “one newsroom” strategy that will merge TV and digital news gathering into one operation. This will result in approximately 100 employees losing their jobs.
CNN.com will also launch a subscription service later this year, with some of its content behind a paywall. At the same time, CNN will launch a free, ad-supported channel that will air CNN originals and other programming, but not the same feed as the CNN cable network.
Exactly what content will be locked behind a paywall is unknown at this time, although reports suggest that many of their videos will soon be hidden behind a paywall.
Now, in an interview with the Financial Times, when asked about the future of CNN and cable TV, Thompson said, “But the speed at which people have canceled cable and are likely to continue to cancel and not watch cable at all is a much, much bigger strategic threat than the intricacies of competition between individual cable channels.” Thomas continued, “The idea that there could be a digital subscription is a serious possibility,”
The move would mark a remarkable turnaround for CNN, which infamously spent hundreds of millions of dollars on big-name anchors and a newsroom only to see its launch fail, with Warner Bros. Discovery CEO David Zaslav quickly pulling the plug on the service. The implosion marked one of the biggest media flops in an industry rife with failures.
Thompson has a history of potentially making a successful digital subscription a reality. During his tenure at The New York Timestransformed the newspaper’s online presence by successfully implementing a subscription model as the publication expanded its premium content, particularly around areas such as travel, food and health. For CNN, Thompson plans to start with news, the “central proposition that evokes the CNN brand.”
It’s unclear what that would look like or how much such a service would cost. It’s also unclear how much video content CNN would include in the service and how much would remain free.
Thompson also told the The Wall Street Journal that he wants to find a better way to deliver video news on phones. The CEO said he wants to tap into formats that are popular with younger consumers to create a “high-quality, differentiated product” that people will pay for.
The question is whether people will pay for CNN news on the website and apps. News has increasingly become something that people think should be free, even though some publications have successfully erected paywalls, such as The Wall Street Journal or Bloomberg.
It remains to be seen how the year will unfold for CNN. For now, there are not many details about Thompson’s plans.
No launch date or price has been announced yet for this new streaming service.
Here’s the full memo, according to Deadline:
Dear All,
Two weeks ago, America and the world turned their attention to a CNN studio in Atlanta. The program we aired that night was one of the most consequential, not only in our history, but in the history of all television news. It was also a perfect example of everything CNN stands for. Honesty. Total professionalism. A dedication to being there for our audience when it matters most and to fulfilling Ted Turner’s founding mission for this great news company.
From the day I joined CNN nine months ago, I’ve been talking about the need to take this precious legacy and future-proof it for a very different media future. In January, I laid out a number of big themes:
- Follow the audience – their news consumption has changed beyond recognition, so we must adapt and transform our services to meet them where they are today and will be tomorrow;
- Twice as much news – that’s what we stand for and our competitive advantage, but now is the time to bring all the different branches of news at CNN together into one organization to be able to deliver those future services;
- Develop a digital strategy – one that is ambitious enough to captivate the audience And the income we need to maintain our unique journalistic strength and to succeed as a company.
- Improve our core TV product – millions of people still find it an indispensable way to immerse themselves in the news and current events. Therefore, find a clear path to migrate the TV experience into the digital future.
