CNN Philippines Shuts Down Operations Following Heavy Financial Losses
Another loss for woke CNN.
CNN Philippines, one of the local franchises in Asia, is set to cease operations nearly nine years after its inception, GMA News Network reported.
CNN Philippines is a free-to-air television network in the Philippines that provides news and information. It’s the only predominantly English-language channel on free-to-air television in the Philippines. It’s also available on cable and pay television.
The network, which has been operating at a financial deficit, resulting in losses exceeding almost $90 million, will be making a formal announcement this coming Monday, according to an official from CNN Philippines.
The closure will impact approximately 300 employees of the network. It is understood that the decision to relinquish the CNN franchise was reached last year, with the approval of Nine Media Corp., but the implementation was postponed until post-Christmas to reduce the impact on employees during the festive season.
While the licensing agreement for the CNN brand in the Philippines is set to expire at the end of 2024, speculation has emerged about an earlier termination of broadcasts.
The airwaves are expected to fall silent soon after the much-anticipated official statement from Nine Media president Benjamin Ramos, which will be released following the general meeting on January 29. Details of the meeting’s agenda have not been made public, but it is anticipated that this will be a key discussion point.
Meanwhile, according to Forbes, CNN’s profits in 2022 were estimated to be $750 million. A report from Forbes in June 2023 states that a portion of this loss can be attributed to the decision in April 2022 to drop CNN+, a direct-to-consumer service, one month after its launch. The report also states that this decision resulted in a reported one-time loss of $200 million.
Forbes reported:
Moreover, the year-over-year ad revenue fall-off has been accelerating. In April 2023, CNN’s ad revenue numbered $80 million, compared to $153 million in April 2022, a decline of 48%. Overall, the average monthly ad revenue in the first four months of 2023 stood at $78 million, in contrast to $128 million from January to April 2022. Licht took over CNN on May 2, 2022.
The analysis also found, so far this year, a sizable drop in the number of CNN advertisers. In the first four months of 2023, MediaRadar reported CNN had a total of about 2,100 advertisers. In contrast, from January-April 2022, there had been about 2,700 CNN advertisers, a decline of 23%. Moreover, many advertisers have been reducing their ad commitment to CNN. Through April 2023, 17 companies had invested $2+ million on CNN’s ad platforms, a 75% fall-off from 68 companies the previous year.
It has been reported by multiple sources that CNN generated $1 billion in profits every year from 2016 to 2020. In 2021 it was estimated that CNN’s profits totaled $1.25 billion. Last year, CNN’s profits dipped to an estimated $750 million. Part of the loss in profits, can be attributed by WBD’s decision, in April 2022, to drop direct-to-consumer CNN+, one month after its launch. This resulted in a reported one-time loss of $200 million.
Last year, CNN’s Kate Bolduan dropped a bombshell announcement, revealing that CNN would be closing its CNN Center headquarters in Atlanta. The decision comes in the wake of declining viewership and increasing financial pressures.
“Before we go today, we are marking an important moment today in CNN’s history. Today’s show will be the final broadcast from the CNN Center in Atlanta,” said Bolduan.
While the broadcaster had already moved its weekday anchors to New York or Washington, D.C., the CNN Center in Atlanta still housed significant operations, including digital and CNN International.
“We anchor the show out of New York, but the control rooms of this show and much of our editorial staff has always been in Atlanta at that iconic building at the CNN Center, also known as CNN’s World News Headquarters,” said Bolduan.
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