CNN chief: Network facing ‘existential crisis,’ likely to shift away from cable sometime in the future

Mark Thompson, CNN’s chief, told the Financial Times that the news organization is facing an “existential crisis,” saying the network will likely eventually shift to subscription-based offerings sold directly to viewers rather than relying on pay TV providers.

Thompson, who took over in October 2023, has been working to boost the network’s fortunes after years of disappointing ratings. He took over from Chris Licht, who exited the network in June 2023 after a little over a year in charge. 

Thompson’s comments were wide-ranging and don’t necessarily outline specific plans, but they also aren’t surprising given the flood of cord-cutters that have eroded into linear TV viewership in general. Not only does this mean networks such as CNN are getting less revenue from carriage fees, the potential pool of viewers is also smaller.

For CNN specifically, Thompson suggested that the network might see itself being delivered primarily via smartphones and other handheld devices — and charging consumers directly for the content on a subscription basis.

Some early outlines of a move entirely to digital may already be visible in the form of CNN’s website, which is regularly a top-performing destination for news. The site, however, does not charge for its offerings, instead relying on display, video and native advertising for revenue, much like most other major news organizations.

CNN could consider starting to require users to register to view most or all content, Thompson said, making it possible for it to start gathering data on its users that could, in turn, be used to making advertising more targeted, Thompson noted. Other news organizations have been moving in this direction by nudging users to register to use features such as customization. 

While more specific details about a digital-only CNN were not offered (and may not even exist yet), Thompson did mention that the network isn’t likely to develop an offering like the misstep that was CNN+. That streaming service lasted less than a month in 2022 and reportedly cost the network hundreds of millions of dollars. 

Thompson did hedge his bets and noted “…it’s quite likely that we’ll end up there,” but much of the future for CNN and other networks may ultimately be out of their control and more dependent on waves of consumer behavior and shifts in technology. 

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He also hinted that more cost-cutting measures could be coming as debt-laden parent Warner Bros. Discovery looks for ways to reduce spending. There have also been reports that WBD may ultimately sell off CNN to raise cash, though no decision has been made on that option.