Net financial drain
CNN pulls plug on business news net CNNfn
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Whether parent company Turner Broadcasting will keep the shelf space for other programming -- one possibility would be CNN Intl. -- or cede the valuable real estate to cable operators and satcasters remains unclear.
CNN prexy Jim Walton told reporters that the decision to walk away from CNNfn was made in order to redirect resources to CNN proper, Headline News and potential new products such as high-tech delivery systems for content (think streaming Internet).
Although Walton said the news division is outperforming its revenue estimates for the year, CNN and Headline News continue to struggle in the ratings.
CNNfn, with 110 staffers, has only about 30 million subscribers and isn't a fully distributed net.
Walton said 60 CNNfn employees are being eliminated but noted that many of those staffers are being encouraged to apply for 100 new jobs posted Thursday across other CNN divisions.
The other 50 staffers, including CNNfn topper Ken Joust, are being relocated to other CNN units. Joust will be in charge of all business programming and newsgathering for CNN in the U.S.
"I'm very, very sad personally for some of the people impacted," Walton said. "However, as we look at the marketplace, we came to the conclusion that we would have more potential growth if we went a different way."
Walton's comments and whopping number of job listings signaled that another round of major initiatives are in store for CNN's nets. CNN is still coping with having tumbled well below Fox News Channel in the ratings in recent times.
Beginning in January, Walton said viewers would begin to see more destination programming on Headline News as opposed to round-the-clock headlines, but he declined to be more specific.
CNNfn was launched during the height of the dot-com boom, as was the Peacock's CNBC. But in recent years, audience interest in the financial news nets has waned. CNNfn doesn't reach enough households to be counted in the ratings by Nielsen Media Research, while CNBC's viewership has continued to erode.
CNBC has been de-emphasizing its strictly financial roots in recent months by converting its primetime lineup to entertainment fare.
The hole left by the demise of CNNfn and the lagging ratings at CNBC could prove opportune for Fox News parent company News Corp., which has dropped strong hints that it would like to start a spinoff business news net. Fox News financial host Neal Cavuto has the top five business shows on cable.
Walton stressed that he remains committed to financial news and said several signature CNNfn shows will relocate to other nets, including "Open House" and "Dolans Unscripted."
One person sure to take the news hard is CNN business anchor Lou Dobbs, who oversaw the launch of CNNfn. Walton said he spoke with Dobbs on Wednesday and that the journo was supportive of the decision. Signature newscast "Lou Dobbs Tonight" airs on CNN and CNNfn. Show will continue on CNN at 7 p.m. ET.
Discussions already are under way among top CNN brass and CNNfn advertising partners. "We will work with our clients to find a spot that pleases them," Walton said.
Likewise, Turner is in discussions with CNNfn's distributors. Walton said some cable ops and satcasters have expressed interest in international news programming. Turner could also consider launching an entertainment net.
Walton said CNNfn staffers who decide to leave CNN entirely will be given two weeks' pay plus two weeks for every year they worked at the news org.
