When Mark Thompson became the CEO of The New York Times in 2012, he faced skepticism from within the organization. As a TV executive, he was tasked with transforming the business of the storied news organization. However, Thompson saw great potential in the Times and believed he could bring a fresh perspective to the industry. Now, Thompson is bringing his “cold eye” to CNN, where he has been named chairman and CEO.
Thompson’s unique combination of journalistic and business skills is highly regarded in the industry. Jonathan Miller, CEO of Integrated Media, compares Thompson to respected figures in the entertainment industry who have excelled in both creative and business roles. Miller believes Thompson is of the same caliber in the news business and is well-equipped to address both the journalistic and business challenges facing CNN.
One of the biggest challenges Thompson will face is navigating the decline of the traditional pay-TV bundle. Cable news channels like CNN, Fox News, and MSNBC have thrived in the pay-TV model, where they receive carriage fees from subscribers. However, as more viewers shift to streaming platforms and cut the cord, the pay-TV model is becoming less sustainable. This presents a significant challenge for news organizations like CNN, as they must find alternative revenue streams and adapt to the direct-to-consumer model.
Thompson’s predecessor at CNN had attempted to address these challenges through the now-shuttered CNN+ effort. However, the company is now reviving its streaming plans through Warner Bros. Discovery’s streaming platform, Max. Thompson may adjust this strategy or pursue a new one, but it is clear that news will play a critical role in Max’s future.
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Fox News has taken a different approach by launching its own direct-to-consumer offering, Fox Nation. While CNN and MSNBC focus on integrating their content into existing streaming platforms, Fox News has chosen to create a standalone service tailored to its super fans. Both approaches have their merits, and Thompson will need to determine which strategy is best for CNN’s future.
The need for a solution is critical, as cable news channels face viewership and share pressures. Fox News, the most successful channel in cable news, has also faced challenges and has been forced to reduce expenses. CNN, like its competitors, must find a way to transform its business and invest in new opportunities to remain relevant in a rapidly changing media landscape.
Transforming a business in decline is never easy, and Thompson faces a daunting task. The impact of the long decline is evident in the form of layoffs and cost-cutting across the industry. Thompson will need to secure investment from Warner Bros. Discovery to fund CNN’s transformation. However, it is uncertain how much the company is willing to invest, given its recent cost-cutting measures.
Time is also of the essence for CNN. With the 2024 political season approaching, the channel needs to achieve relevance and gain back its audience. The rise of independent options, such as podcasters and upstart cable channels, has posed a threat to cable news loyalists. CNN must act quickly to capture the attention of viewers and regain its position as a prominent news source.
In conclusion, Mark Thompson’s appointment as Chairman and CEO of CNN brings hope for the struggling news organization. Thompson’s experience at The New York Times and his combined journalistic and business skills make him well-suited to address the challenges facing CNN. Navigating the decline of the traditional pay-TV model and transforming the business will be no easy task, but with the right strategies and investments, there is hope for CNN to regain its relevance and thrive in the digital future of news.
