COMMENTARY

CNN Moves Further into Digital, Amid Layoffs - Will Consumers, Brands Buy In?

• by Wayne Friedman , Staff Writer, July 12, 2024

CNN is still working hard to make a bit more money -- all while it looks to head back into the streaming world with more digital subscription products this year.

Profitability is also high on the list:

There will be layoffs -- of around 100 employees, which is around 3% of its total workforce. But that’s not all. 

Mark Thompson, chief executive officer of CNN, told staffers in a memo on Wednesday: “Some of our colleagues will learn today that their jobs are being eliminated or are at risk.”

The last time CNN had layoffs was in late 2022, under then-CEO Chris Licht, when “a couple of hundred” jobs were cut, according to reports.

What will the new digital products be all about? 

One main paid-digital subscription service, according to Thompson, will focus more on video rather than being "text-based."

CNN will also be developing two free, ad-supported CNN streaming businesses -- one focused on original/special programming and another a Spanish-language version.

CNN Max, a live version on sister streaming platform Max, started up in April 2023. This was a modest addition after CNN stopped its short-lived -- and in theory, expensive-to-produce -- CNN+ streaming service.

If that isn’t enough, Thompson brought up an area that is always anxiety-producing for reporters: artificial Intelligence (AI).

Jonathan Klein, former president of CNN U.S., told TV Watch many years back that AI would be able to write and produce much of what reporters do now. 

But no worries. Proponents of this would say the good news is -- as with any revolution or adaptation -- that it will free up reporters to provide more investigative journalism.

Of course, this is always the "blue sky" projection when new technology hits the ground for any business.

Overall trends are still not so good: Layoffs of journalists, editors and supporting staff -- both in the U.S. and around the world -- are continuing and on the rise.

Does this improve the health of CNN? 

For consumers, the question is whether they have even more streaming dollars to spend per month. And for advertisers, the question may be whether there are additional reasons to buy into another digital streaming upstart.