CNN's New Revenue Model is Set to Send it's Loyal Fanbase in a Rage...

Starting this week, CNN.com (owned by Warner Bros. Discovery) will no longer be the free-for-all it once was. The big ask? $3.99 per month for unlimited access. And before you say, “But wait, isn’t CNN part of my cable package?”—yeah, it is. 

(Source: Giphy) 

But who’s still watching cable in 2024 anyway? Exactly. So now CNN’s trying to get a slice of that sweet, sweet digital subscription pie. This move is an attempt to create a new revenue stream as cable news viewership continues to shrink like your favorite shirt in a hot wash. Traditional advertising dollars just aren’t cutting it anymore. 

(Source: Detroit News) 

According to Alex MacCallum, CNN’s EVP of digital products and services , the paywall is aimed at those of us who are constantly refreshing CNN.com for the latest drama. Casual browsers? No problemo, you’ll still get your freebie headlines for now. But if you’re one of those users with 12 tabs open on the site, well… welcome to the paywall, buddy.

(Source: Giphy) 

Now this is not just about blocking you from reading the same headlines you could probably get from X. However, CNN’s promising a bit more bang for your buck. Subscribers will get: exclusive election features (Because who wouldn’t pay to watch democracy on fire?), original documentaries, curated journalism, and fewer ads (Because no one wants to see another pop-up for a new toothpaste while reading about a global catastrophe).

(Source: Giphy) 

On the surface, this is no doubt a smart move on CNN’s part. They know the free content honeymoon is over, and they’re looking to lock in consumers who want more than just surface-level news. Whether we’re willing to pay for it, though? That’s the million-dollar—or rather, $3.99-a-month—question.

What’s more is that CNN isn’t exactly breaking new ground here. The New York Times not only pioneered this move but made it look easy. And guess what? Both MacCallum and CNN’s head honcho, Mark Thompson, are ex-NYT heavyweights—so they know the subscription game inside and out. 

(Source: CNN) 

But here’s the thing: CNN isn’t the Times. The Times was a print institution long before it went digital. People were already used to paying for the paper version. Cable news? Not so much. We’ve all grown up expecting TV news online for free, baby.

(Source: Giphy) 

That said, CNN’s pivot to digital subscriptions isn’t just an act of desperation—it’s survival. The network’s already been burned with its first attempt at a digital subscription service, CNN+. But they’re hoping this new strategy will be the one that sticks.

The thing is, making people pay for news in 2024 isn’t exactly a walk in the park. There’s a reason even Netflix is throwing ads into its lower-priced tiers. Subscription fatigue for consumers is real - (Which is why we keep our Stocks.News content FREE.99, you’re welcome). But between Netflix, Hulu, Spotify, Disney+, and a dozen other services, how many $3.99 charges can we really take? CNN’s going to have to convince us that it’s worth forking over cash for content we’ve been getting for free for years.

(Source: The Drum) 

But, but, but… CNN’s hoping that their content quality is enough to get people to part with their cash. And they’re not wrong to bank on their brand power—CNN is still one of the biggest names in news. But success here will depend on how much value they can actually deliver beyond the paywall. 

The exclusives need to be good. The documentaries need to be hit. And the election coverage? It better be insane (AND bipartisan, which let’s be honest - won’t happen). Especially considering Mark Thompson sees CNN’s future in streaming, digital video, and FAST channels (free ad-supported TV, for anyone not keeping up with the acronyms). 

(Source: Giphy) 

So in the end, CNN’s paywall move is bold, but risky as hell. They’re diving headfirst into a world where people are already maxed out on subscriptions, and news is something we’ve all gotten used to not paying for. But in a media landscape where ad revenue is drying up faster than a desert mirage, CNN has to try something in this split American republic we all live in.

Yet, if CNN can get this right, it could definitely boost the revenue and the share value of its parent company, Warner Bros Discovery, in the future. But until then, we’ll all be watching. Well, at least until the paywall goes up. 

At the time of this writing, Warner Bros. Discovery (CNN Parent) is down -1.29% on the day. 

P.S. 54% short interest, and a 648.5% borrow fee?! Once this catalyst hits this little known stock… we could be going to the moon! Of course, we’ll be dropping the ticker symbol sometime soon… so click here ASAP to upgrade to premium so you don’t miss out on this seismic opportunity! 

Stocks.News holds positions in Netflix and Disney as mentioned in the article.