CNN Experiments with Paywall to Adapt to Changing Media Landscape
In a significant shift in strategy, CNN, the most-visited news website in the United States, is set to test a paywall beginning in early October. This initiative aims to bolster its business as the traditional cable television model continues to face decline across the industry. According to sources familiar with the decision, CNN will implement a metered paywall, which allows users to read a limited number of articles for free before requiring payment for further access.
While the exact subscription price has not been disclosed, insiders indicate that CNN plans to launch with an affordable offering to assess consumer interest. A spokesperson for CNN declined to provide any comments regarding the initiative.
This subscription model marks one of the first significant business moves under the leadership of Mark Thompson, who took on the role of chairman and chief executive of CNN nearly a year ago. In an internal memo shared with employees earlier this year, Mr. Thompson expressed his belief that advancements in technology would enable CNN to deliver journalism that audiences would be willing to pay for. He later confirmed the company’s intention to explore a paywall system.
Thompson, who previously served as the chief executive of The Times, has a proven track record of developing a successful digital subscription model that has significantly contributed to that organization’s revenue. Since his arrival at CNN, he has recruited various executives to lay the groundwork for the network’s paywall initiative, including Alex MacCallum, a seasoned professional from The Times who now serves as CNN’s executive vice president of digital products and services.
CNN.com attracts hundreds of millions of visitors each month, positioning it as a potential lifeline for the network amid waning cable viewership. However, CNN faces the challenge of changing reader habits, as its digital audience has not traditionally paid for news content. According to those briefed on the strategy, CNN will closely monitor audience reactions to the paywall and make adjustments as necessary.
This is not CNN’s first attempt at establishing a digital subscription model in recent years. Under the leadership of former president Jeff Zucker, the network launched CNN+, a comprehensive streaming service featuring exclusive content from well-known anchors such as Jake Tapper, Chris Wallace, and Anderson Cooper. Unfortunately, the service was ultimately discontinued after the management of CNN’s parent company, Warner Bros. Discovery, deemed it financially unsustainable.
In contrast to the previous venture, the new subscription program will not focus on creating a plethora of exclusive shows, as sources indicate. This approach aims to keep operational costs manageable while also maintaining positive relations with CNN’s cable distribution partners, who invest hundreds of millions of dollars annually for the rights to broadcast the channel.
There have been indications of CNN’s preparations for a subscription-based business model. Earlier this year, the network began piloting a “registration wall,” which required frequent users of the website to submit their email addresses in exchange for article access. This data collection strategy has laid a vital foundation for CNN’s digital subscription program by equipping the network with valuable user data to target advertisements and promote its paid offerings effectively.
