Thursday, August 04, 2022

CNN’s plummeting revenue and ratings could force spending cuts

Heather Hamilton - Yesterday
Washington Examiner


CNN is facing its lowest viewership and profits in a long time, forcing decisions about how to cut spending.

The cable news network finished July with 731,000 total prime-time viewers, a 15% drop from the same time last year. It finds itself trailing MSNBC’s 1.3 million viewers and Fox News’s 2.1 million viewers during prime time.

The network is also down 15% overall in the key demographic of 25-54-year-olds.

S&P Global Market Intelligence projected that CNN’s profitability is on pace to decline to $956.8 million this year, marking the first time since 2016 that the network dropped below $1 billion in profits, according to the New York Times.

CNN is reportedly looking to increase its revenue with new advertising deals, expanding the brand into China, and increasing the reach of CNN Underscored, its e-commerce initiative.

The network has also reportedly clamped down on spending amid the slumping ratings and revenues with limitations on employee travel and work celebrations.

In July, Warner Bros. Discovery CEO David Zaslav said CNN would return to a focus on "journalism" with less of a focus on opinion-based programming.

"Journalism first. America needs a news network where everybody can come and be heard; Republicans, Democrats," Zaslav said. "We're not going to look at the ratings, and, in the long run, it's going to be worth more."

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