CNN announced the elimination of approximately 100 jobs. This represents less than 3% of CNN’s 3,500-person workforce.
The cuts are part of a larger operational overhaul. CNN has faced several rounds of layoffs in recent years, including 400 positions cut in 2022.
Digital and TV Teams Merge
CNN plans to merge its digital and traditional pay-TV news-gathering teams. This move aims to streamline operations and reduce redundancies.
The merger reflects the blurring lines between TV and online viewing. In 2022, 87% of U.S. adults got news from digital devices, according to Pew Research.
New Subscription Product Planned
CNN will launch a new subscription product before year-end. This move follows industry trends towards direct-to-consumer offerings.
CNN+ previously launched in March 2022 but shut down after only one month. The global news subscription market is projected to reach $1.13 billion by 2027.
Free Ad-Supported Channels Launching
Two new free ad-supported online channels will debut: CNN Originals and CNN en Espanol. These channels aim to expand CNN’s reach and cater to diverse audiences.
Ad-supported streaming is growing, with 55% of U.S. consumers using such services in 2023. CNN en Espanol currently reaches approximately 50 million households in Latin America.
CEO Thompson Leads Digital Push
Mark Thompson, CNN’s CEO, is spearheading the network’s digital transformation. Thompson previously expanded the New York Times’ online subscriber base significantly.
Under his leadership, the Times grew from 1 million digital subscribers in 2015 to over 5 million by 2020. CNN aims to build a billion-dollar-plus digital business.
Focus Shifts Towards Streaming
CNN is prioritizing streaming content to adapt to changing viewer habits. This shift aligns with broader industry trends away from traditional cable.
In 2023, U.S. adults spent an average of 3 hours and 11 minutes per day streaming video content. Cable TV viewership declined by 8.8% in the same year.
AI Integration in News Production
The network plans a “strategic push” into artificial intelligence. AI will be used to enhance audience service and journalistic efficiency.
This move follows industry trends, with 79% of news executives believing AI will have a significant impact on journalism. CNN has already experimented with AI in news production, including automated article generation.
Lifestyle Content Expansion Planned
CNN aims to create more “news you can use” with ad-sponsored lifestyle features. This strategy targets audience engagement and diverse revenue streams.
Lifestyle content has shown strong growth, with 72% of consumers engaging with such content daily. CNN’s digital properties reached an average of 144 million unique visitors monthly in 2023.
Primetime Ratings Face Challenges
CNN’s primetime audience currently trails Fox News and MSNBC. The network hosted a recent presidential debate, attracting 11.4 million viewers across all platforms.
In Q3 2023, CNN averaged 568,000 primetime viewers compared to Fox News’ 2.1 million and MSNBC’s 1.1 million. CNN’s ratings have fluctuated significantly in recent years, often tied to major news events.
Industry-Wide Digital Transformation Continues
CNN’s changes reflect broader trends in the news industry. Digital transformation has been a priority for most major news organizations.
The global digital transformation market in media is expected to reach $38.2 billion by 2026. Nearly 86% of news organizations consider digital transformation a high priority.
