CNN’s Digital Transformation: Exploring a Subscription Model and Newsroom MergerCNN’s Digital Transformation: Exploring a Subscription Model and Newsroom Merger Despite the failure of CNN+, CNN is determined to adapt to the changing media landscape. CEO Mark Thompson has outlined a plan to merge the network’s newsgathering operations into a single entity, create a subscription streaming service, and launch a free ad-supported channel. One Newsroom Strategy CNN is merging its TV and digital news operations into a single “one newsroom” strategy. This will result in approximately 100 employees losing their jobs but aims to streamline newsgathering and improve efficiency. Subscription Streaming Service CNN.com will launch a subscription service with some content behind a paywall. The service will include original programming and may also include some videos currently available for free. Free Ad-Supported Channel CNN will also launch a free ad-supported channel that will air original programming and other content but not the same feed as the cable network. Thompson’s Vision CEO Mark Thompson believes that the decline in cable subscriptions poses a significant strategic threat for CNN. He sees a digital subscription model as a potential solution, similar to his successful implementation at The New York Times. However, details about the service’s content and pricing are yet to be announced. Challenges and Opportunities The success of CNN’s transformation hinges on its ability to attract paying subscribers in an era where news has become increasingly free. Thompson plans to focus on providing high-quality, differentiated news content that appeals to younger consumers. Thompson has experience in implementing a successful digital subscription model. However, it remains to be seen whether the market will support a paid subscription for CNN news, particularly given the availability of free alternatives. Conclusion CNN’s digital transformation represents a bold attempt to stay relevant in the face of changing audience behavior. The success of its plans will depend on its ability to strike a balance between providing valuable content and monetizing its services. The future of CNN will unfold as the company navigates these challenges and opportunities.
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.
