CNN launches a digital paywall, charging some users to read articles for the first time | CNN Business

Absolutely, here’s a rewritten version: New York CNN —

CNN, a leading news website globally, is now requesting some users to subscribe for $3.99 a month to access its content.

On Tuesday, the news outlet is starting to implement a paywall designed to gradually support CNN's global journalism efforts.

“Beginning today, we’re requesting that our users in the United States subscribe to a modest regular fee in order to enjoy unlimited access to the high-quality articles on CNN.com,” stated Alex MacCallum, CNN's executive vice president for digital products and services, in an internal memo explaining the new initiative.

Most people who visit CNN’s website, typically reading just a handful of articles each month, won't be asked to pay right away. As MacCallum pointed out, “Users will only be prompted to subscribe after they have read a specific number of free articles.” Subscribers can enjoy unlimited access to CNN.com’s content, along with perks such as exclusive features about elections, original documentaries, a carefully selected daily roundup of our best journalism, and a reduced number of digital advertisements.

MacCallum and her supervisor Mark Thompson, who serves as the chairman and CEO of CNN, both have extensive experience from The New York Times. The Times is often admired in the journalism industry for its ability to turn online readers and gamers into paying subscribers.

In a memo sent out during the summer, Thompson announced that CNN plans to develop top-notch, subscription-based offerings. These products will deliver essential news, insights, and context in engaging new formats and experiences. He also mentioned that the first subscription service on CNN.com is expected to be launched before the end of 2024.

The subscription service is set to debut on Tuesday in its initial version, with plans for further development in the coming months. MacCallum mentioned on Tuesday that they aim to enhance user experience and broaden their reach to attract and support new audiences. He also teased the introduction of “new products and businesses” down the line.

For companies like CNN, which primarily generate their income from cable TV, the task is straightforward: they need to find new ways to earn money online to balance the losses from traditional television.

Before the new management took over, CNN launched a streaming service named CNN+ in 2022 to engage directly with its audience. Unfortunately, the rollout occurred just days before Warner Bros. Discovery, the network's new parent company, began seeking ways to cut costs. As a result, CNN+ was shut down just weeks after its launch.

CNN is planning to focus on acquiring subscribers for its main services. However, certain content will still be available for free without a subscription. This includes the CNN homepage, live updates on breaking news, individual video pages, and sponsored articles.

On Tuesday, Thomson Reuters, the biggest global provider of multimedia news, revealed that it will be introducing a paywall for its website and app starting in early October. The company announced that users worldwide can subscribe for a fee of $1 per week.

“According to Reuters President Paul Bascobert, this updated subscription model enables Reuters to broaden the accessibility of its acclaimed journalism at a reasonable cost, while also enhancing our investment in reporting and subscriber services.”

Digital subscriptions present a mix of potential and difficulties for various news outlets. A recent survey conducted by the Reuters Institute for the Study of Journalism at the University of Oxford revealed that just around 20% of American consumers are currently subscribing to online news services.

Greg Piechota, a researcher affiliated with the International News Media Association, stated that there is significant potential for the news industry to expand. He remarked, “There are no limits to how many subscriptions online news can achieve. Picture yourself in front of the One World Trade Center in New York City, gazing up at the observation deck. Most news organizations have only reached the ground floor, while the 100th floor still feels very distant and lofty.”

He mentioned that The Times stands out significantly, boasting about 10 million digital subscribers.

Smaller news outlets are facing challenges with subscription burnout and various forms of pushback. This situation highlights the reality that most news content was available for free during the rise of the World Wide Web in the 1990s.

Over the last ten years, media organizations of all sizes have been working to alter the standards related to how people access news.

However, numerous readers and viewers fail to recognize the link between their personal investment in news and the overall support for the industry. Piechota noted that, “sadly, surveys show that most people globally are unaware of the financial difficulties that commercial news outlets are dealing with.”

"However, when people learn about the serious financial challenges facing the industry," he stated, "research indicates that their readiness to support journalism significantly increases."

Reporting by Liam Reilly from CNN was included.