CNN puts a paywall on its website as TV revenues decline
CNN has long had one of the most visited news websites in the world. Starting Tuesday, users are going to have to pay for it.
The Warner Bros. Discovery-owned news operation is putting a paywall on CNN.com, requiring U.S. users to pay $3.99 a month or a discounted rate of $29.99 a year for access. The subscription will allow unlimited usage of the site, which is visited by 150 million people globally each month.
Users will be asked to subscribe after accessing a number of free stories, according to an internal memo from Alex MacCallum, executive vice president of digital products and services for CNN.
The audience size was slightly larger than a typical town hall or formal interview of a presidential or vice presidential candidate.
CNN’s reason for the move is rooted in the problems that plague all of traditional television. Consumers are spending more time with online video and canceling their traditional pay-TV subscriptions. Revenue from cable and satellite subscribers is declining as cord-cutting continues at a steady pace each year. The trend, along with a decline in ratings, has put pressure on CNN’s profit margins.
Whether consumers will pay for a product they have used for free over the years remains to be seen. Mark Thompson, who took over as CNN‘s chairman last year, turned the New York Times into a successful digital subscription site during his tenure at that company.
MacCallum’s memo said subscribers “will receive benefits like exclusive election features, original documentaries, a curated daily selection of our most distinctive journalism, and fewer digital ads.” CNN is currently developing video content that will be behind the paywall on the site, according to people familiar with the plans.
Before Roger Ailes made TV history with the launch of Fox News, he was considered the best political media strategist in the business.
The subscriber plan comes more than a year after CNN’s false start in the streaming marketplace. The network launched CNN+ in 2022 with a slate of original programs hosted by big-name talent at the network. The costly venture was shuttered days after its launch once Warner Bros. Discovery took ownership.
CNN has created a stream of news programming for its parent company’s Max platform.
CNN has been running behind Fox News and MSNBC in the Nielsen ratings. But all cable networks face an existential threat from cord-cutting as they are losing revenue and their ability to reach consumers through television. The carriage agreements with pay-TV providers prevent the news networks from replicating their channels for a direct-to-consumer offering.
Fox News has a subscription service called Fox Nation, which offers documentary and lifestyle programming aimed at its conservative-leaning audience. The service does offer some Fox News programs from the previous day on a video-on-demand basis.
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