CNN’s worries are far from over. The liberal media network is struggling to maintain its lucrative profit even after the change in leadership.
After a long spell of low viewership and dwindling ratings, the channel is expected to record less than $1 billion in profit for the first time since 2016.
CNN Incurs Historic Losses
According to the New York Times, S&P Global Market Intelligence is projecting profits of $956.8 million for CNN in 2022.
Reportedly, this profit can even slash further, considering the US economy is moving towards a recession. Companies are likely to reduce their advertisement budgets, which will eventually disturb the finances of many media outlets.
SCOOP — CNN is on pace to dip below $1 billion in profit for the first time since 2016 amid crashing ratings, sources say:https://t.co/10Fw7iofrp
— Ben Mullin (@BenMullin) August 2, 2022
Two people familiar with CNN’s worries told the New York Times the new chairman of the network, Chris Licht, was projecting $1.1 billion revenue for CNN in 2022, which he is going to miss by more than $100 million.
While calculating the profit, another person argued, CNN ignored the losses associated with its streaming service CNN +.
CNN+ was forced to shut down after attempting to sell subscriptions to users who were not even interested in the free content.
This decline in profit is reported even after CNN’s sharp reduction in its expenses. Last month, the media network announced a new travel and expense policy, which bars employees from different kinds of celebrations.
CNN’s New Leadership is Unable to Keep the Team Intact
When Licht assumed the chairmanship of CNN, he tried to keep his team motivated by telling them not to worry about the channel’s ratings.
Licht believed the company would earn profit by pitching to advertisers about its “pristine brand” so they stop focusing on audience size.
CNN Chris Licht new CEO will need his A++ game to fix CNN. It’s a shame, while Don Lemon and many of his cohorts were destroying CNN they were all making millions of dollars. CNN needs to get rid of the whole bunch and start over with all new people.
— Rusty Gervais (@JacqamoAJG) August 4, 2022
Now, as the ratings continue to plummet, the company is struggling hard to maintain its grounds, which could eventually result in massive downsizing within the network.
Many political analysts suggest viewers are exhausted with the left-leaning stance of CNN on every partisan issue.
So, the ratings and profits are expected to continue declining, as long as the liberal media network remains the mouthpiece of the Democrat Party.
These economic worries have forced chairman Licht to change his position. Now, he is pushing his employees not to take sides in political issues.
Some media outlets have reported Licht warned employees that partisan analysts will not be tolerated on CNN anymore.
Though Licht’s message is offending many employees at the media network, who have long sided with the left and are struggling to report impartial news.
Don Lemon, an on-air personality of CNN, told his colleagues that journalists have to stick to their ideology if they want to serve the nation.
Lemon insisted the Republican Party is taking the country into a “very dangerous” situation, so journalists have to keep exposing them; otherwise, they will not be doing their jobs “soberly.”
This article appeared in Right Wing Insider and has been published here with permission.