- State of the Screens
- Posts
- Breaking News: CNN+ Streaming Soon
Breaking News: CNN+ Streaming Soon
Michael Beach
June 17, 2021
Big news: AT&T has confirmed that CNN will be launching a direct-to-consumer (D2C) service in 2022.
Why this matters #1: CNN+ will be following the 2018 D2C launch of Fox Nation, now available in 37 countries.
Quote from Jason Kilar – CEO @ WarnerMedia:“I would argue that there’s an opportunity to do more than just those two things. I would argue that there’s an opportunity to take that franchise that is the incredible, talented team at CNN and have them manifest their journalism additionally through direct-to-consumer environments. By the way, it’s very possible for us to have a linear HBO service and to have HBO Max. So, I would argue, using that analogy, that it’s absolutely possible for CNN to both have a linear channel…and be able to invent and serve customers in other ways over the internet.”
Why this matters #2: News accounted for 20% of all TV viewing in 2020 and is a primary reason why consumers subscribe to pay-TV.
The main reason someone pays for live TV, according to Civic Science:
1) News – 30%
2) Live content – 23%
3) Sports – 22%
Mr. Screen’s Crystal Ball: Cable news is undervalued in the bundle making an appealing a-la-carte option.
Big question: What does the video news business look like in 2030?
Back in January, we outlined four likely scenarios for the future of news.
Scenario #1: Video news is consumed primarily live AND through a bundle. New players (Newsmax, etc.) may emerge to fill niche gaps, but live sports and news create enough demand that new bundles (Apple, HBO Max, Xfinity Flex, etc.) provide an attractive offering. The business model is a mix of subscription fees and advertising.
Scenario #2: Video news is consumed primarily live through a direct-to-consumer (D2C) subscription (Fox Nation, rumored CNN offering, etc.). The business model is a mix of subscription fees and advertising.
Scenario #3: Video news is consumed primarily live BUT WITHOUT a paid subscription (Tubi, Newsy, Cheddar, etc.). The business model is primarily advertising.
FYI: Cable news viewership has (finally) started to decline during the first 100 days of the Biden administration.
The post Breaking News: CNN+ Streaming Soon appeared first on Cross Screen Media.
Reply