The primary problem that CNN is facing is that what everyone would really
want from a streaming CNN (if they want it at all) would be - well -
regular CNN.

But right now, they just can't deliver that - not without you first buying
a cable bundle. The $1.01 (according to Variety back in 2020 -
https://variety.com/vip/pay-tv-true-cost-free-1234810682/) that CNN gets
per user per month is worth something of the order of $800m a year or
thereabouts, and they can't afford to give that up. CNN's most recent
*profits* are ~$700m! But obviously a significant number of people have cut
the cord and don't have cable, and there's no current way that CNN can sell
those households their regular service because of the exclusivity deals
they've done with cable (and satellite) operators. Cable would simply stop
paying the $1 a month if they weren't exclusive.

The number of cable homes falls year on year, so those cable revenues fall
commensurately. At some point, CNN will have to bite the bullet and give up
those exclusivity deals. But in the meantime, CNN+ was at least
theoretically, a workaround or hedge to allow people to get a sort-of-CNN
without cable. Yes - at launch CNN+ was supposed to be for super-fans of
the regular service (just as Fox News fans have Fox Nation - they too can't
put their main offering on a streaming service), but in time they would
surely have wanted to grow it out and offer a version of the service that
didn't cost them that lucrative cable money.

How CNN, Fox News, ESPN and others navigate this will be interesting. The
networks and studios with non-news and sport can do it by slowly shifting
shows to their streamers, and putting all the "good" stuff on streaming.
Hence we see ABC shifting Dancing with the Stars to Disney+. CBS can stay
full of NCIS spin-offs, while anything else goes on Paramount+ and so on.

There's a good question about how news should work in a streaming world,
but honestly I think a "lift and shift" from linear broadcast to streaming
would be just fine for a lot of people. Add in the ability for me to watch
a 20-30 minute regularly updated news bulletin on demand, and that's just
fine. I bet a load of streaming only folk would happily leave something
like CNN streaming live in the background on mute or low volume, just
keeping an eye for "Breaking News" banners. But it's a business limitation
they face right now.


Adam



On Sun, Apr 24, 2022 at 7:13 PM Tom Wolper <[email protected]> wrote:

> For the last couple of days I’ve been trying to think of what I would want
> from a CNN subscription service and I can’t come up with anything. I’d like
> on demand documentary explainers that go deep into topics but they are
> available for free on YouTube.
>
> On Fri, Apr 22, 2022 at 6:59 PM Kevin M. <[email protected]> wrote:
>
>> I don’t understand why anyone at CNN thought their viewers would buy
>> different CNN content that was streamed.
>>
>> In college I used to have “CNN Headline News” on in the background
>> constantly. As background noise, at the time nothing was better. When I
>> lived in Central Asia, when I had access to cable, I turned on BBC World
>> News. It was even better background noise. Yes, they were both repetitive
>> but it was live journalism in living color when and where I wanted it.
>>
>> Whether the “flagship” network is overhauled or the streaming content is
>> relaunched, if the focus isn’t on journalism, it is fundamentally flawed.
>>
>> On Fri, Apr 22, 2022 at 3:48 PM PGage <[email protected]> wrote:
>>
>>> Totally agree that CNN as is hardly inspires cutting edge journalism.
>>>
>>> What I am curious about Kevin (or anyone else) is how does streaming
>>> news+opinion offer an advantage over the linear cable platform. Ideally a
>>> basic newscast would repeat and be updated multiple times in the 24 hour
>>> day on cable or streaming, so why do I need to be able to view a newscast
>>> online from even 4 hours ago? There may be special reports and
>>> documentaries from CNN cable that would be nice to archive and access as
>>> desired online, but that seems like a supplement, not a replacement of the
>>> cable presence.
>>>
>>> If I were a news first guy at CNN, I would be caring less about a vanity
>>> streaming presence, and more about upgrading the journalism on the
>>> mothership. Get that right, and then just simulcast it on streaming to
>>> magnify it’s footprint.
>>>
>>> On Fri, 22 Apr 2022 at 3:40 PM Kevin M. <[email protected]>
>>> wrote:
>>>
>>>> I didn’t subscribe to it, because the very concept of paying for what
>>>> CNN does seems wrong on multiple levels, but I don’t think dropping CNN+
>>>> after a month disrespects the newsroom; I think the content coming out of
>>>> the newsroom disrespects the newsroom.
>>>>
>>>> It wouldn’t take much to make CNN a go-to source for news, but the
>>>> network’s insane plan of elevating personalities and pundits over
>>>> journalists and experts, reducing the network to armchair quarterbacks who
>>>> bark over each other then pat each other on the back for doing it, prevents
>>>> that from ever happening.
>>>>
>>>> On Fri, Apr 22, 2022 at 3:33 PM PGage <[email protected]> wrote:
>>>>
>>>>> Based on the reporting of Dylan Byers at Puck, the answer is both A
>>>>> and B (not sure they are that different). Zaslav, while respecting that he
>>>>> had no say until he officially too over, has made it clear he is looking
>>>>> for efficiency (he has promised $3B Of savings in cost synergies), and 
>>>>> that
>>>>> clearly always included combining all of the new assets in one streaming
>>>>> service. There will be CNN content online, maybe a lot of it, but it will
>>>>> be on whatever they eventually call the new thing, which likely will
>>>>> eventually also fold in HBO.
>>>>>
>>>>> The CNN people saw CNN+ primarily in terms of serving their news
>>>>> mission and ambition (to be the news organization of choice on the
>>>>> internet, supplanting the NYT). I think they were betting that if they
>>>>> committed CNN financially and publicly enough before the new guys came in,
>>>>> they would have no choice but to keep going. They lost that bet.
>>>>>
>>>>> The newsroom is seeing this as a demoralizing and disrespectful
>>>>> de-prioritizing of News within the new company. They may be correct, but I
>>>>> think it is too soon to tell. CNN+ Always seemed a little self important
>>>>> and deluded an idea, and I have never heard an explanation of how news,
>>>>> whose main attribute is timeliness, translates well to the archived, 
>>>>> mended
>>>>> and on demand environment of streaming.
>>>>>
>>>>> Whatever Chris Wallace wants to do, it arguably will be more
>>>>> successful if somehow pushed to the consumer of John Oliver or Bill Maher,
>>>>> than as the furtive lynchpin of an all news streamer.
>>>>>
>>>>> On Fri, 22 Apr 2022 at 2:44 PM Paul Murray <[email protected]>
>>>>> wrote:
>>>>>
>>>>>> I'm puzzled that no one at CNN seemed to consider, "since we're being
>>>>>> acquired, maybe we should hold off launching this expensive venture until
>>>>>> we see what our new overlords think." Especially since their plans called
>>>>>> for losing $1b in the first few years, and the new company was already
>>>>>> going to be saddled with plenty of debt, courtesy of AT&T.
>>>>>>
>>>>>> I can only conclude that either a) they were high on their own supply
>>>>>> and convinced that CNN+ was a work of absolute genius that everyone would
>>>>>> recognize or b) they knew the new guys would pull the plug, and they were
>>>>>> determined to plunge ahead regardless.
>>>>>>
>>>>>> From what I have read, Discovery was wary for legal reasons of
>>>>>> issuing any directions to Warner pre-merger.
>>>>>>
>>>>>> On Friday, April 22, 2022 at 4:18:47 PM UTC-4 Tom Wolper wrote:
>>>>>>
>>>>>>> Journalists I follow on twitter say the consequences of a failure
>>>>>>> this large are going to reverberate in CNN for years.
>>>>>>>
>>>>>>> On Fri, Apr 22, 2022 at 12:20 AM Kevin M. <[email protected]>
>>>>>>> wrote:
>>>>>>>
>>>>>>>> Remember this picture trending of a bunch of white guys in charge
>>>>>>>> of CNN+? People, myself included, pointed out that in Atlanta, to not 
>>>>>>>> have
>>>>>>>> ANY other ethnic representation showed a profound disconnect from the
>>>>>>>> potential online audience. I can’t prove that’s why it failed, but…
>>>>>>>>
>>>>>>>>
>>>>>>>> https://twitter.com/morsea/status/1508645771066982403?s=21&t=-7ealiXbkRNUZFSbMb2T6A
>>>>>>>>
>>>>>>>>
>>>>>>>> On Thu, Apr 21, 2022 at 10:40 AM Tom Wolper <[email protected]>
>>>>>>>> wrote:
>>>>>>>>
>>>>>>>>> I wish I had $300 million I could throw away like that. I was
>>>>>>>>> surprised to see that Chris Wallace’s show wasn’t about interviewing
>>>>>>>>> newsmakers but interviewing people like William Shatner and Joan 
>>>>>>>>> Collins.
>>>>>>>>> Were they targeting nursing homes?
>>>>>>>>>
>>>>>>>>>
>>>>>>>>> On Thu, Apr 21, 2022 at 12:33 PM Kevin M. <[email protected]>
>>>>>>>>> wrote:
>>>>>>>>>
>>>>>>>>>> All anybody wanted was access to a live stream for breaking news.
>>>>>>>>>> CNN execs couldn’t figure that out.
>>>>>>>>>>
>>>>>>>>>> On Thu, Apr 21, 2022 at 9:27 AM Joe Hass <[email protected]>
>>>>>>>>>> wrote:
>>>>>>>>>>
>>>>>>>>>>> Hey Quibi: you've got company!
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>> https://www.wsj.com/articles/warner-bros-discovery-is-shutting-down-cnn-streaming-service-11650556680?st=6x8pi3k7qmjr1rr&reflink=desktopwebshare_permalink
>>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>> On Tue, Apr 19, 2022 at 3:28 PM 'Bob Jersey' via TVorNotTV <
>>>>>>>>>>> [email protected]> wrote:
>>>>>>>>>>>
>>>>>>>>>>>> At least till new bosses JB Perrette and Chris Licht get a
>>>>>>>>>>>> chance to look over things.
>>>>>>>>>>>>
>>>>>>>>>>>>
>>>>>>>>>>>> https://variety.com/2022/tv/news/cnn-plus-future-warner-bros-discovery-1235235816/
>>>>>>>>>>>>  (link)
>>>>>>>>>>>>
>>>>>>>>>>>> Licht begins at the company May 2nd, at which time he'll quit
>>>>>>>>>>>> Twitter.
>>>>>>>>>>>>
>>>>>>>>>>>> https://twitter.com/ChrisLicht/status/1516071114073645060
>>>>>>>>>>>>  (link)
>>>>>>>>>>>>
>>>>>>>>>>>> B
>>>>>>>>>>>>
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>>>>>>>>>>> .
>>>>>>>>>>>
>>>>>>>>>> --
>>>>>>>>>> Kevin M. (RPCV)
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>>>>>>>>>> .
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>>>>>>>>> <https://groups.google.com/d/msgid/tvornottv/CAJE-FiHF%3D8hdxPPXZgp8QHrbs9X-OFMv83yAc9fuuUqwcfOBjg%40mail.gmail.com?utm_medium=email&utm_source=footer>
>>>>>>>>> .
>>>>>>>>>
>>>>>>>> --
>>>>>>>> Kevin M. (RPCV)
>>>>>>>>
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>>>>>>>> .
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>>>>>> .
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>>>>> .
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>>>> --
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>>>>
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