CNN’s Ad Revenue Down On Weak Ratings – Time Warner CEO Wants To “Fix” Problem
CNN has consistently claimed all is well even as ratings have fallen off significantly.
But according to Time Warner CEO Jeff Bewkes on yesterday’s first quarter conference call, CNN has declined financially as well as ad revenue is down – and he wants to “fix” the ratings problem.
Here’s a look at how various outlets on the call categorized Bewkes’ comments on the cable news network and ad revenue:
From the Wall Street Journal:
The company’s cable networks, which include TNT and TBS, posted a 9% ad-revenue jump, even as the U.S. news networks CNN and HLN saw a drop in advertising mostly due to weak ratings.
So while TBS enjoyed a strong quarter – ahead of what is likely to be an even stronger quarter as advertisers find themselves part of a cycle that includes self-promos for Conan O’Brien‘s imminent arrival – the 9% gain came despite losses from CNN and HLN.
From the New York Times:
Mr. Bewkes said ratings at some of the networks’ channels were lower than he wanted. He cited CNN and said Time Warner was “working to fix” it.
No one on the conference call reported on any specifics Bewkes offered in terms of ‘fixing’ the problem with CNN ratings, but the fact that it was asked is telling. CNN executives have long held the belief that journalism-over-ratings was the end of the conversation. But with Bewkes hoping to “fix” what he identifies as a problem, it opens the door to potential changes at the network.
From Businessweek:
Pricing increased for commercials sold closer to air date on Time Warner’s cable channels, offsetting a decline in ads at CNN in the U.S. Advertising growth topped the 2.5 percent gain estimated by Imran Khan, an analyst with JPMorgan Chase & Co.
This news comes on the heels of CNN competitor Fox News enjoying its highest quarterly profit ever – another indication of the vastly different directions the two networks are headed. Maybe until Bewkes begins “working to fix” the issues.
