Streaming, Citizens United changed News’ business model
You likely saw John Harwood’s swan song on CNN last week. One last burst of truth-telling and he was gone.
With CNN now under Chris Licht’s management, Harwood’s exit suggests a purge is underway (Washington Post):
His exit follows the abrupt departure of CNN’s chief media correspondent, Brian Stelter, host of the weekly media news show “Reliable Sources,” which had aired for three decades until it was canceled last month. Like Harwood, Stelter had time remaining on his contract. Another longtime CNN commentator, legal-affairs pundit Jeffrey Toobin, announced his departure on Aug. 12.
Several current and former CNN employees who spoke with The Washington Post — most of whom spoke on the condition of anonymity to speak candidly — are interpreting the sudden exodus as evidence that Licht, who joined the network as chairman and CEO in May, is starting his tenure by casting out voices that had often been critical of former president Donald Trump and his allies, in an effort to present a new, more ideologically neutral CNN. That aligns with a vision repeatedly expressed by David Zaslav, the chief executive of Warner Bros. Discovery.
But enough about the politics. Twitter user YS @ReallyActivist explains the economics behind CNN’s shift. I know squat about this, but his take makes some sense:
1/
What happened to CNN?
I worked there for 18 years.
This is what happened.
Everyone wants to know why CNN is shifting.
Let me explain why.
What Fox News gets that MSNBC and CNN don’t get…
Each quarter, the Cable Operators release their subscriber base.
2/
For seven consecutive years, the cable operators have seen subscriber declines for 84 months
It’s called in the TV biz, “Cord Cutters”
97% of the “Cord Cutters” are under the age of 50
The majority of what is left watching cable like we have known, are very very old people
3/
As demographics for TV rapidly has changed to a very old age group, the networks remaining with any traction (ESPN, News Nets, etc.) have – HAVE TO – appeal to who is sitting on their couch watching news 24/7
Again, they are very very old people relative to the US population
4/
In the ratings war, the scorecard is usually based on A18-49 demographic.
But not for News.
No one buys news networks going after A18-49. No one.
All advertisers on these nets buy them for A50+.
MSNBC went left.
Fox News went right.
CNN tried to play the middle.
5/
The problem with CNN was they built a powerhouse in the 90’s. We printed money.
Cash. Hand over fist.
Then MSNBC and Fox News came along. The race was on.
MSNBC went velvet rope.
Fox News went diner.
CNN got caught in no man’s land.
6/
But the money kept coming in.
Then, technology changed the game.
CNN.com became THE defacto news source for America for a good 10 years.
Bernard Shaw hiding under the desk when Baghdad got bombed.
Aaron Brown broadcasting for 20 hours straight during 9.11.
7/
We loved the accolades.
We sold on it.
But what we didn’t do was take a look at what was happening.
The viewership started to splinter to MSNBC cause some folks wanted a left bent
But a lot went to Fox News
In fact between 2008 and 2016, CNN lost 60% of its 50+ audience.
8/
Fox News, saw a 70% increase in the same demo during the same period (mostly men)
Fox News gave the audience what they want, an aggrieved white man perspective
While we chased the “next shiny object”
not arguing Fox News is right. Absolutely not. They are evil to the core
9/
“Fish where the fish are.”
In 2010, the team at CNN got the Fox News Strategy for sales and that was their strategy (they got ours too and MSNBC, happens all the time)
Some of us, said “uh oh, they’re right”. The audience is no longer A18-49
others laughed and mocked it
10/
Trump came and CNN started to make a shitload of money again by being the “counter” to Fox News but it was based on perception not reality.
No one was still watching.
Why?
While rest of America is out there cutting the cord, Fox News doubled down on old people.
And won.
There’s more in the thread about CNN’s cost per thousand impressions (CPM). “Chris Litcht was given one edict,” says YS. “Raise CPM’s.”
Also, Citizens United changed the business model. “News Networks make more money during the 3 months leading up to mid-terms than they do all year.” And in presidential years? Hoo-ah!
PAC money keeps news networks’ doors open. After $770 million poured into news networks in 2012, says YS, they told anchors to stop talking about Citizens United.
Ironically, with UNAffiliateds now the largest tranche of registered voters here in North Carolina, I’m urging campaigns in competitive races to target them more efficiently than they can with VoteBuilder alone. I’ve generated 25 county spreadsheets showing by precinct the percentage of UNAs that voted for Biden in 2020. Basically, I’m showing them in each county where the fishing is good … and where it’s not. Also, where UNAs on the fence might be persuadable.
But as with For The Win, I can’t make campaigns use them. The data doesn’t come from VoteBuilder, and Democrats have trouble thinking outside the VoteBuilder box. Sort of the way the world changed and CNN was slow to adapt.
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Request a copy of For The Win, 4th Edition, my free, countywide get-out-the-vote planning guide for county committees at ForTheWin.us.