To survive the competition of during streaming, Discover Warner Bros company lashed CNNTelevision workers more while simultaneously investing $70 million to focus on new digital products.
Last summer 100 jobs were cut on CNN.
According to a Bloomberg report Thursday (Jan. 23), CNN chairman and CEO Mark Thompson defended cutting another estimated 200 jobs in a staff memo. “The changes we’re announcing today are part of an ongoing response by this great news organization to profound changes in the way audiences in America and around the world consume news,” he said. .
The change comes as CNN faces ongoing challenges, such as declining pay TV subscription revenue as more consumers abandon traditional cable TV in favor of streaming video services.
and According to several reports, the data presented in a recent defamation case revealed that CNN’s revenue will decrease by 20% between 2021 and 2023.
However, according to CNBC, CNN’s intention to reach $1 billion in revenue by 2030. To get there, the reported $70 million commitment by Warner Bros. Discovery to support CNN’s digital transformation and expansion will fund the development of subscription-driven streaming products tailored to changing consumer viewing habits.
Thompson said in the memo that THERE planned to “on create a new way for digital subscribers at home and abroad to stream news programming from us on any device they choose,” according to Bloomberg. The report also noted the network has plans to launch a “lifestyle-oriented product” later this year.
In October, CNN.com introduced an online paywall that required readers to pay $3.99 a month once they exceeded their allotment of free articles, and other stories could be accessed subscribers only.
In the CNBC report, Thompson acknowledged the impact of the layoffs on affected employees but also indicated that there should be approximately 100 new positions focused on digital content that eventually make up for job losses in the television division.
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