Inside CNN's Cash and Brand Crisis: How Network Bosses are Scrambling for Money After Being Hammered By Jake Tapper Defamation Suit, Brutal Cuts and Humiliating Ratings
CNN is looking toward a post-cable future after dealing with some major setbacks.
Feb. 6 2025, Published 11:39 a.m. ET
CNN is navigating its new path amid sinking pay TV revenue and struggling ratings.
RadarOnline.com can reveal CNN Chairman Mark Thompson is focused on shifting the network to a cord-free future after enduring a rough period of lawsuits, leadership shakeups, layoffs, and fallout from its battles with the first Trump administration.
The network has been struggling with plummeting pay TV revenue and disastrous ratings.
CNN, founded by Ted Turner in 1980, is now facing declining pay TV revenue – and Thompson is working to reshape the network for a future without traditional cable.
Last month, Thompson made a bold move by cutting 200 jobs on the TV side and investing $70million in new products targeting digital media users.
A jury found CNN liable for defamation against U.S. Navy vet Zachary Young.
The former BBC and New York Times executive described these actions as a response to the "profound and irreversible shifts" in how American audiences consume news.
CNN, aiming for a post-cable future, launched CNN+ in 2022 – but ownership changes stalled the plan. Now, Thompson is tasked with reviving it, including launching a new lifestyle product and a digital news stream.
Thompson is aiming to generate $1billion in digital revenue by 2030 as CNN's ratings and revenue have sharply declined, losing viewers to Fox News and MSNBC and seeing its earnings drop by half since 2020.
The network's digital shift comes after a series of setbacks to its public image.
Last week, Jim Acosta, a well-known CNN journalist recognized for his combative approach while covering President Trump, decided to leave the network instead of accepting a new midnight shift.
Just days before, the network paid millions to settle a defamation lawsuit filed by a security consultant named in a 2021 story about black market war profiteers in Afghanistan following the U.S. military withdrawal.
U.S. Navy veteran Zachary Young was accused by the network of being a "human trafficker" and a "war profiteer" in an episode of The Lead with Jake Tapper.
Young was awarded $5million by the jury for financial losses and suffering, with the possibility of additional punitive damages. CNN expressed pride in its journalists and commitment to fair reporting but acknowledged lessons learned from the case.
Jim Acosta, known for his tough coverage of President Trump, recently left CNN rather than take a new midnight shift.
The network also continues to be a target of criticism from Donald Trump and the political right, who use CNN as a symbol of their attacks on mainstream media.
Trump’s frequent "fake news" rhetoric was even cited during the recent defamation trial against CNN.
CNN's economic struggles reflect a larger trend in the traditional TV industry, as streaming now accounts for half of all U.S. TV viewing and cable subscriptions continue to decline.
This shift is hitting TV news hard – leading well-known anchors and reporters to either accept pay cuts or leave the industry altogether.
One CNN veteran commented: "One thing we do know about the future, it’s not going to be the same money."
Some network insiders remain hopeful about Thompson’s transformation plan due to his successful track record at The New York Times, however – despite the low morale from recent layoffs.
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While CNN finds success in breaking news, it remains uncertain if the network can attract subscriptions for non-live content with such an uptick in streaming services.
Though confident in its new digital strategy, CNN must navigate polarized views and scrutiny – as shown by Jim Acosta’s departure – which reflects the political tension surrounding the network.
CNN's high ratings during aggressive Trump coverage dropped as the political landscape changed.
CNN's aggressive coverage of the Trump administration had driven high ratings, but as the political landscape shifted, the network struggled to maintain its audience.
Under Chris Licht, efforts to attract conservative viewers led to significant audience loss, with MSNBC surpassing CNN in ratings.
Despite these setbacks, some believe CNN's digital relaunch offers a chance to regain its reputation for breaking news and provide value to viewers.
