A digital paywall is introduced by CNN, costing some users money to read content for the first time.
CNN, one of the most popular news websites in the world, is starting to ask some of its visitors to pay $3.99 a month for access.
On Tuesday, the news organization implemented a paywall designed to support CNN’s global journalism efforts gradually. This initiative marks a significant step towards ensuring the financial sustainability of their reporting.
In an internal memo detailing the strategy, Alex MacCallum, CNN’s executive vice president of digital products and services, announced, “Beginning today, we are inviting users in the United States to subscribe for a modest recurring fee that grants unlimited access to CNN.com’s premier articles.” This approach aims to enhance the user experience while generating necessary revenue for the organization.
MacCallum clarified that casual visitors to CNN’s website, who typically read only a few articles each month, will not be immediately prompted to pay. “Users will only be encouraged to subscribe after they have accessed a specific number of free articles,” she stated. Subscribers will enjoy not only unlimited access to articles but also exclusive features related to elections, original documentaries, a carefully curated selection of distinctive journalism, and a reduction in digital advertisements.
For media organizations such as CNN, which primarily derive their revenue from cable television, the imperative is evident: they must cultivate new digital revenue sources to counteract the downturn in traditional television viewership.
In an earlier attempt to forge direct connections with its audience, CNN launched a streaming service named CNN+ in 2022. This initiative coincided with the transition to new ownership under Warner Bros. Discovery, which was actively seeking cost reductions. Unfortunately, the timing proved unfavorable, and CNN+ was discontinued within weeks of its debut.
In response to these challenges, CNN is now focusing on monetizing its primary offerings through subscriptions. However, certain content will still be available to the public without charge, including the CNN homepage, live breaking news updates, individual video segments, and sponsored articles. Similarly, Thomson Reuters has announced plans to implement a paywall for its website and app, offering subscriptions globally at a nominal fee of $1 per week, aiming to enhance its reporting capabilities while maintaining affordability for its audience.
Greg Piechota, a researcher-in-residence at the International News Media Association, emphasized the significant potential for growth within the news industry. He remarked, “There is no subscription ceiling for online news,” illustrating this point by comparing the current state of news brands to standing at the base of the One World Trade Center in New York City, where most have only reached the first floor, while the pinnacle remains far above in the clouds.
According to Piechota, The Times stands out as a leader in this domain, boasting approximately 10 million digital subscribers. In contrast, smaller news organizations are grappling with subscription fatigue and various forms of resistance, which can be attributed to the historical context where most news content was freely accessible during the rise of the World Wide Web in the 1990s.
Over the past decade, media companies of all sizes have endeavored to reshape the public’s perception regarding news access. However, many consumers still fail to recognize the connection between their financial support for news and the overall sustainability of the industry. Piechota noted that surveys indicate a widespread lack of awareness regarding the economic difficulties faced by commercial news media. Nevertheless, he pointed out that when consumers are informed about these challenges, their willingness to pay for journalism significantly increases, as demonstrated by various studies.
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