Thread.

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.

http://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.

11/

CNN saw that CNN+ will NOT bring in new audiences.

What 65 year old is going download and subscribe to a news streaming service with a basketball star, Rex Chapman- no offense Rex and I love ya - but the 65 year old living in The Villages is not your fan.

News Networks are not here to defend democracy.

There is only one goal and one goal only.

Higher CPM’s.

CPM is the currency used in TV to reflect the value of the programming.

The higher the CPM, the higher the margin on that commercial being sold.

The most valuable programming on TV is the championship game of the NCAA March Madness Tournament.

Super Bowl gets higher ratings, but the value ratio between CPM and audience is significantly much larger for March Madness Championship game vs. Super Bowl.

You pay $4 To $5 Million for a Super Bowl ad but you get 100 Million people watching.

You pay $1 MM for a March Madness spot but only get, at most in these day, 15 Million people watching.

See the ratio premium difference?

+ there is nuance to this scenario as well, for example, 1) you just can’t buy the super bowl, that’s $5MM + you gotta buy 960 hours of pregame on some sister channel and 2). You can’t just buy ONE game for March Madness, you have to buy EVERY game.

Crazy business.