Reuters and CNN launch paywalls on same day

Overview of the Reuters and CNN websites on October 1, 2024, when both companies revealed their plans to introduce a metered paywall.

Both Reuters and CNN have revealed today their plans to implement a metered paywall on their websites.

Both news organizations are launching a digital subscription system that will allow users to access a certain, yet-to-be-announced number of articles each month before they are prompted to sign up for a subscription.

CNN, which is the leading news website in the US in terms of traffic and ranks third globally, announced that it will start charging its regular users in the US a monthly fee of $3.99 (£3) to access the entire site.

The subscription will offer unique features and documentaries, a daily selection of curated content, and a reduced number of online ads.

As reported by the source, certain content will continue to be completely available. This includes the homepage, live updates on breaking news, individual video pages, and sponsored posts.

In the meantime, Reuters, which ranks as the 30th largest news site globally, announced that full access to its website and the recently reintroduced app will be priced at $1 (75p) weekly, or $4 monthly.

Paul Bascobert, the president of Reuters, stated, “This new subscription model allows us to broaden the audience for our acclaimed reporting at a reasonable cost, while also enabling us to enhance our journalism and offerings for our subscribers.”

Reuters is set to launch its digital subscription service in Canada at the beginning of October, which will then expand to various countries in Europe and the United States, eventually reaching audiences globally.

Reuters assured that their pricing structure is “straightforward and clear,” with “no introductory deals or unexpected hikes in prices,” and mentioned that users can “cancel without hassle.”

Reuters initially suggested implementing a paywall for its website in 2021. However, the plan was abandoned because of a disagreement with Refinitiv, a financial data provider that was previously part of Thomson Reuters and was bought by LSEG in 2021. The conflict revolved around concerns that introducing subscription fees might violate their existing agreement for news distribution.

In January 2023, Reuters revisited the concept after coming to an agreement with LSEG to develop a strategy that would allow Reuters to introduce subscription-based products aimed at consumers, benefiting both organizations in their outreach to professionals worldwide.

In August, Thomson Reuters, the parent company of Reuters, announced that it anticipates a revenue increase of roughly 7% for 2024. The Reuters News department reported a 13% rise in revenue for the first half of the year, reaching $415 million. The growth in the second quarter was attributed to expanded activity in the agency sector and a price hike from their news contract with LSEG's data and analytics division.

At CNN, revenue is struggling due to its dependence on traditional television, especially the fees it receives from cable providers.

Mark Thompson, who became the CEO last year after successfully introducing a digital subscriptions initiative at The New York Times, mentioned this summer his goal to secure CNN's future. This plan includes developing a digital subscriptions model aimed at generating over a billion dollars in revenue.

In a memo sent to employees on Tuesday, Alex MacCallum, CNN's executive vice president of digital products and services, informed them that the initial launch would be broadened with the introduction of "new products and businesses" in the future.

"Eventually, we plan to put resources into improving how we address the needs of our users and broaden our focus to reach and assist new groups of people," she stated.

CNN's earlier effort to launch a subscription service, CNN+, lasted just a month before shutting down in April 2022. At that time, it reportedly had around 150,000 subscribers who were paying for the service.

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