CNN, after failing its first bout with a subscription-based streaming service, seems to be looking for another chance to launch its own streaming platform amid financial struggles in the news industry.
In an interview with the Financial Times, CNN CEO Mark Thompson hinted that there is a "serious possibility" to launch another streaming service as part of the publication's "entirely new digital strategy."
CNN released its streaming service, CNN+, on March 2022 to accompany its 24-hour news broadcasting cable channel but was later shut down just after one month following a messy leadership change.
The shutdown caused several layoffs across the publication. However, Thompson said that the time is now right for another attempt as the company faces more "existential" challenges to its business.
CNN to Look for More Revenue from User Data, AI
Thompson cited the growing audience on YouTube and TikTok as primary reasons to tap the news outlet's presence to the "tens of millions" getting information from CNN off-platform.
The new CEO previously headed The New York Times, leading the legacy newspaper publication to the digital platform it is today.
Thompson also mentioned other plans to collect greater information from its visitors to sell to advertisers and direct-to-consumer subscriptions, as well as looking for "opportunities from generative AI".
Streaming Services Face Headwind Amid Growing Inflation
Streaming services may have been popular in the past decade or so, but the recent economic crisis and growing dissatisfaction with existing streaming platforms have soured people's taste in such services.
According to Reuters report from last month, streaming subscriber growth in the US went down from 21.6% to 10.1% since last year as more people are pushed out due to pricier subscriptions and ad-supported tiers.
At least 39% of the subscribers from last year retained their membership as others have turned to much cheaper alternatives.
It does not help that shows are becoming more fragmented as more video-streaming platforms have popped up since its surge in popularity during the pandemic.
It remains uncertain how CNN will attract audiences in the planned revival of its streaming platform amid current challenges in the venture it is heading towards.
