CNN Beats Its Competitors to the Live Streaming Punch

By Dustin Rowles | TV | August 24, 2023 |

By Dustin Rowles | TV | August 24, 2023 |

For those wondering why the major cable news networks (CNN, Fox News, MSNBC) haven’t transitioned to streaming yet (aside from CNN’s scrapped attempt with CNN+), it probably has to do with a combination of contracts and concerns over losing carriage fees and advertising revenue. Similar to ESPN, these news networks generate hundreds of millions of dollars from cable companies. In 2020, CNN earned over $1 billion from carriage fees alone.

If CNN earns $8 per subscriber from carriage fees plus advertising, introducing a live-streaming version of the network to Max could potentially cut into that revenue if a devoted CNN viewer decides to cut the cord due to CNN’s availability on streaming platforms. On the other hand, the number of people choosing to cut the cord continues to rise, resulting in declining audiences for these cable networks. Eventually, the cable news networks will likely have to adapt to the demands of the streaming era before they lose their entire audience.

Interestingly, CNN — the pioneer among cable news networks — will be the first to stream live programming. This development brings both good and bad news for cord-cutters like me. The good news is that I will finally regain access to live cable news. The bad news is that I will have access to live cable news again.

According to a press release, CNN Max will be integrated into Max “as part of an open beta” on September 27th.

Featuring the most renowned CNN anchors from around the world, the new service will offer fresh programming tailored specifically for the Max streaming audience. This includes shows like “CNN Newsroom with Jim Acosta, Rahel Solomon, Amara Walker, and Fredricka Whitfield,” and “CNN Newsroom with Jim Sciutto.” Jim Sciutto will also lead breaking news coverage in the afternoons. Additionally, CNN Max will showcase programs such as “Amanpour,” “Anderson Cooper 360,” “The Lead with Jake Tapper,” and “The Situation Room with Wolf Blitzer,” along with other anchors, correspondents, and contributors. This new 24/7 streaming service aims to provide the Max streaming audience with immediate and valuable global breaking news, offering top-tier analysis, context, and reporting on the most significant world events. It enhances the product by providing the convenience of viewing news anytime, anywhere, and on any screen.

This move is likely one of the smartest decisions made by David Zaslav during his tenure as CEO. Furthermore, it might compel Peacock to follow suit; they may consider adding live MSNBC programming to their streamer soon. (Peacock already features MSNBC programs, but they aren’t live.) This is exciting news for me as I need my Kornacki fix!

So, where does this leave Fox News? They could either focus on their struggling standalone streaming service, Fox Nation, or potentially utilize Tubi, the Fox-owned FAST service. Tubi features advertising, but it lacks carriage fees, which are currently the network’s primary source of revenue. However, with younger viewers increasingly cutting the cord and older viewers eventually diminishing, this revenue source could eventually dry up, which would be a real shame.