In the latest developments from the beleaguered network, CNN has revealed that it will cut approximately 100 jobs while simultaneously rolling out a couple of free streaming channels, signifying a strategic pivot as it struggles to stay afloat. With the move towards “free ad-supported streaming television” (FAST), the network aims to provide content without a subscription fee, perhaps indicating their awareness that audiences are unwilling to pay for politically slanted coverage.
CEO Mark Thompson, known for his controversial past at The New York Times, outlined the changes in a company memo. He disclosed that CNN would introduce its first subscription product later in the year, focusing on lifestyle journalism—a clear shift away from the network’s traditional news offerings. This new direction suggests a realization within CNN that its core content is no longer marketable on its own merits. By diversifying into lifestyle journalism, CNN hopes to build a $1 billion business off the back of content that, presumably, would have broader appeal than their much-criticized news coverage.
Furthermore, Thompson announced upcoming additions to the network’s FAST offerings, including CNN Originals and CNN en Español. These expansions into niche content areas highlight the network’s attempt to capture smaller, potentially loyal, viewership segments.
However, job cuts were also a significant part of Thompson’s memo. Approximately 100 employees will be affected, a relatively small number within a workforce of over 3,500. Nonetheless, such reductions underscore the financial strains and the desperate efforts for realignment. Thompson emphasized that CNN aims to close open positions to minimize direct layoffs, yet the impact on morale and the implications for the remaining staff are unmistakable.
The decline of cable and satellite TV viewership has had a devastating impact on CNN. The network’s ratings have plummeted, causing considerable financial loss due to the significant reduction in carriage fees. These fees, paid by subscribers to cable and satellite bundles, have traditionally kept CNN afloat despite dwindling direct viewership. The exodus from traditional TV packages to streaming services has cut off this crucial revenue stream, pushing the network into an existential crisis.
CNN’s earlier attempt at launching a subscription streaming service failed spectacularly, shuttering less than a month after its debut. The current strategy to bundle CNN with lifestyle journalism content suggests a concession that audiences are disinterested in paying for CNN’s political news. In essence, the network acknowledges that its existing model is unsustainable and that drastic transformations are essential for survival.
As tens of millions of Americans continue to cancel their cable subscriptions in favor of streaming alternatives, networks like CNN face harsh realities. With declining revenue from traditional TV models, CNN will increasingly rely on parent corporation Warner Bros. Discovery for financial support. Transitioning to align with the HBO Max package or similar streaming conglomerates may offer a lifeline, pairing CNN’s offerings with more popular content to justify subscription costs.
Setting up additional FAST channels is a strategic move to reduce production costs. Much of the content is likely to be repurposed from CNN’s existing material, thus maximizing resource efficiency while attempting to maintain audience engagement.
This series of changes at CNN underscores a broader media landscape transformation where traditional revenue models collapse under the weight of shifting consumer preferences. Media entities must innovate or face obsolescence in an era where viewers prioritize diverse, on-demand content without the baggage of inflated cable packages. As this saga unfolds, it serves as a cautionary tale about the perils of rigid adherence to outdated business models in an evolving digital age.
