As paidContent was first to report April 7, CNN Interactive is leaving behind its subscription-only video policy for a hybrid ad-supported/subscription video model. CNN will announce today that the $4.95 subscription fee for access to video through CNN.com will be dropped and video on the site will be ad supported starting in June, a move made possible by the decreasing cost in supporting online video and increased spending on online advertising, particularly video. Given the money similar sites are pulling in from video advertising, CNN.com likely has been leaving money on the table for the last year because of the pay-only policy instituted in 2002.
New premium products, including video archives, won’t be out until the fall. I expect a new broadband service unlike anything CNN has done yet that will make more use of material not being shown on the cable networks, will allow time shifting and will include original content created for broadband. I wouldn’t be surprised if the new premium offerings also include ad inventory.
Still developing so stay tuned.
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