News

CNN Plans to Launch Paywall In Early October

NYT - Media · Benjamin Mullin · last updated

The most-visited news website in the United States is trying out a paywall. In early October, CNN will begin experimenting with charging some readers for digital access as part of a bid to shore up its business as cable television erodes industrywide, according to two people with knowledge of the decision. The company is planning a so-called metered model, which will require the site’s habitual users to pay after reading a certain number of articles, the people said. Many other publishers, including The New York Times and The New Yorker, have used metered paywalls to generate subscriptions over the past decade. The starting price of a subscription is unclear. But the two people said that CNN would start with an inexpensive offering to gauge customer demand. A CNN spokeswoman declined to comment. The subscription wall is one of the first major business initiatives from Mark Thompson, CNN’s chairman and chief executive, who joined the network nearly a year ago. Mr. Thompson said in a memo to employees this year that technology would allow CNN to deliver journalism that readers “will pay for” and later said that the company would try out a paywall. Mr. Thompson is the former chief executive of The Times, where he championed a digital subscription business that now powers the company. Since joining CNN, he has hired executives to help lay the groundwork for the network’s paywall push, including Alex MacCallum, a veteran of The Times who is now CNN’s executive vice president of digital products and services. CNN.com, which draws hundreds of millions of visitors every month, is a potential life raft for the network amid declining cable viewership. But those users are not accustomed to paying for news on CNN’s website, necessitating a delicate approach. The people briefed on the plan said that CNN would be monitoring its audience to see how readers react to the paywall, adjusting if necessary. This isn’t the network’s first foray into digital subscriptions in recent years. Under Jeff Zucker, CNN’s former top executive, the network started CNN+, an expansive streaming service with exclusive content from boldface anchors like Jake Tapper, Chris Wallace and Anderson Cooper. The service was ultimately shut down after leaders of CNN’s new parent company, Warner Bros. Discovery, decided it was too expensive. In contrast to CNN+, the network’s new subscription program does not involve producing scads of new exclusive shows, the people familiar with the plans said. This will keep costs down and avoid alienating CNN’s cable distribution partners, which pay hundreds of millions of dollars annually for the right to air the channel. There have been signs that CNN was planning for a subscription business. Earlier this year, CNN began testing a “registration wall” that required regular users of the website to provide their email addresses in exchange for reading an article. That data collection helped to lay the groundwork for CNN’s digital subscription program by giving the network user data to target ads and market its paid product. Benjamin Mullin reports on the major companies behind news and entertainment. Contact Ben securely on Signal at +1 530-961-3223 or email at benjamin.mullin@nytimes.com. More about Benjamin Mullin CNN, Mark Thompson Inside the Media Industry — WhatsApp: News outlets are experimenting with a feature in the world’s most popular messaging app that allows them to send links and headlines directly to followers. — New York Magazine: Olivia Nuzzi, a star political reporter at the magazine, has been placed on leave after disclosing a personal relationship with the former presidential candidate Robert F. Kennedy Jr. — ESPN: Adrian Wojnarowski, whose use of social media helped change the sports journalism landscape, retired from ESPN to become general manager of the basketball team at St. Bonaventure University. — The Haitian Times: Racist emails. Swatting. Intimidated sources. The digital publication has been receiving some of the same threats that it has been covering in Springfield, Ohio. — Axel Springer: The media company, which owns Business Insider and a portfolio of German newspapers, has struck a deal that will anoint its chief executive, Mathias Döpfner, as the undisputed magnate of a transcontinental media empire.

Related Knowledge Center: State of the business model

State of Play

The traditional journalism business model has long since collapsed, and news organizations have shrunk or disappeared entirely. While a number of promising experiments are under way, the public has not shown a willingness to buy what news organizations are selling.

Artificial intelligence


More informationabout State of the business model