CNN is announcing a restructuring effort, where 100 staff members will be laid off. CEO Mark Thompson also announced a variety of new products and subscriptions as a way to increase revenue.
CNN previously massively failed when it released a “CNN +” service, which only lasted for 30 days. Only 10,000 people had subscribed, due to CNN’s poor reputation among the American public at large. Hollywood Reporter says:
CNN CEO Mark Thompson outlined his digital vision in a lengthy memo to staff Wednesday morning, announcing plans to build a flurry of digital products, including a subscription offering before the end of the year, plans to launch other paid offerings built around lifestyle journalism and a “strategic push into AI.”
In his note, Thompson said that about 100 roles will be cut, representing just shy of 3 percent of CNN’s workforce. He will host a town hall with staff later in the day to further elaborate on the plan.
CNN will also heavily lean into its video offerings, which younger generations prefer. However, CNN’s editorial line and style does not match at all with the way Gen Z consumes media. Yahoo Finance says:
Thompson also plans to launch subscriber-first products, with the first launch prior to the end of 2024. While the details of the products were not revealed, Thompson is setting out to create “best-in-class, subscription-ready products that will provide need-to-know news, analysis and context in compelling new formats and experiences,” according to the memo.
“In the future our digital products need to do a far better job of reflecting CNN’s massive strength in video and anchoring/reporting talent,” Thompson continued. “Video will be at the heart of our future and a re-imagined video experience on every platform – from pure digital to streaming, FAST channels and more – it is essential for CNN’s future.”
CNN’s crisis is common to all of mainstream media. With a dwindling audience and a surplus of liberal reporters, combined with advances in AI, the news industry will be suffering in the near future.
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