CNN is poised to introduce a digital subscription model for some of its online articles starting next month. This strategic move follows similar models adopted by other leading publications.
The decision comes amidst a decline in cable TV viewership and aims to generate additional revenue. An initial ‘inexpensive’ pricing plan will be tested to gauge customer demand.
CNN chairman, Mark Thompson, revealed plans to trial a metered paywall in early October. This system will require frequent readers to subscribe after accessing a preset number of free articles.
The aim is to test customer willingness to pay for premium content, with the subscription initially offered at a low cost to evaluate demand.
CNN’s approach mirrors that of other major publications like The New Yorker, Wired, and The Wall Street Journal, which have successfully implemented similar paywalls to boost digital revenue.
Such models have become increasingly common as traditional media outlets seek new revenue streams in a digital-first landscape.
CNN attracts over 441 million visits per month, making it the most visited news website in the US.
A metered paywall could potentially reduce casual readership but might increase revenue from dedicated readers willing to pay for quality journalism.
The experimentation with this model is a response to both the evolving digital media landscape and the financial pressures faced by traditional news outlets.
Earlier this year, CNN tested a ‘registration wall’ that restricted access to certain articles unless readers provided their email addresses.
This initial test laid the groundwork for the upcoming paywall by establishing a baseline of customer engagement and interest.
The paywall plan was announced alongside a significant company restructuring in July, which included laying off around 100 staff members.
The restructuring and new digital strategy are part of a broader effort to futureproof CNN and create a more sustainable revenue model.
Mark Thompson has ambitious goals for the digital subscription business, aiming for it to generate more than a billion dollars in revenue.
This move is seen as crucial for CNN to maintain its leading position in the media industry amidst declining cable TV subscriptions.
The metered paywall feature is scheduled to roll out in early October. This phased approach allows CNN to monitor and adjust its strategy based on initial consumer responses.
In summary, CNN’s impending shift to a paywall model marks a significant change in its digital strategy. This move aims to secure additional revenue amidst declining cable TV viewership.
By adopting a metered paywall, CNN positions itself alongside other major publications in the pursuit of sustainable digital growth. The success of this initiative will largely depend on customer reception and the perceived value of the content offered.
