US CNN Joins OTT Battle... 'CNN+' to Launch Early Next Year

[Asia Economy Reporter Seulgina Cho] The American CNN network is joining the online video service (OTT) war.

On the 19th (local time), CNN announced plans to launch a subscription streaming service called 'CNN+' in the first quarter of next year.

Jeff Zucker, President of CNN Worldwide, emphasized, "Since CNN pioneered cable news in 1980 and defined online news in 1995, we are now taking an important step forward by offering a subscription streaming service directly to consumers in 2022, expanding what news can be."

The newly launched CNN+ will operate separately from the existing TV service. Programs will be broadcast for about 8 to 12 hours a day. To this end, 450 employees including producers, engineers, and marketers will be hired.

This decision comes in response to recent changes in the media environment led by OTTs such as Netflix. Due to cord-cutting, where people no longer watch broadcast programs on TV, the position of cable broadcast networks including CNN has been shrinking over the past few years. On the other hand, OTT services like Netflix are experiencing rapid growth.

Andrew Morse, Chief Digital Officer (CDO) of CNN+, emphasized that programs for CNN+ will be differentiated from CNN's existing programs. He explained that it will be an opportunity to delve deeper into topics such as climate change, space and science, and race, stating, "This cannot be a news headline service."

Currently aired programs cannot be streamed due to long-term contracts with cable distributors. The company added that programs produced for CNN+ will later be offered additionally to existing cable subscribers.

Subscription fees, detailed programs, and live broadcast schedules for CNN+ will be announced later. CNN plans to launch CNN+ service first in the United States and then expand to other countries.

The key is subscriber acquisition. CDO Morse expressed confidence despite calling it "a considerable risk." He explained that they will be able to offer a new form of service based on CNN's extensive subscriber base. He mentioned, "As we understand how customers use the service, we can consider new formats including podcasts and articles," adding, "CNN+ will be differentiated from anything else on the market." However, he added that the initial launch will "focus on video."