I had the chance to talk with Susan Grant, EVP, CNN News Services, after the official announcement that CNN.com will begin offering free, ad-supported video June 20 after three years in subscription-only mode. Don’t be fooled by that part of the news — as we reported April 7, CNN isn’t abandoning the pay-for-play model. The real headline the Time Warner news network group is pushing is its “groundbreaking broadband service” slated for a fall rollout; Grant is coy about the details but says it will be a pay service. Both parts of the announcement leave a lot of questions unanswered. I tried to get some of the answers from Grant.
On the timing: Grant wouldn’t pinpoint the moment when CNN decided to move toward a hybrid model. “I think it’s fair to say that that CNN.com, we are constantly looking … nothing’s ever off the table.”
On changing the model: In 2002, CNN made its case for going subscription only. What changed? “The cost of bandwidth has plummeted and it gives us an opportunity to be able to provide that video to our giant base of consumers. … The economics changed.”
On the promised broadband product: “It’s fair to say it will be unlike anything you’re seen before. It will be innovative and will have multiple live streams of video.” She said she wants the focus to remain on the June 20 switch to free video.
(I should have asked, if that’s the case why make a big deal out of the broadband now?)
On RealNetworks: CNN was one of the launch partners for Real’s news/entertainment service when it launched as RealOne in 2002. Several iterations later, Real SuperPass is a very different prdocut than first envisioned. And, as of June 20, it won’t have CNN News Pass. “Obviously, when we go with video for no charge June 20, it will no longer be available there. We don’t think it’s fair to sell to new consumers today.” Grant describes RealNetworks as “a wonderful and valued partner” and says “conversations” are ongoing. Could CNN’s new broadband product be available through Real? Re-read previous sentence.
On offering the new broadband product through cable operators: Another non-answer. “We have great relationships with the cable operators.”
Related: Ah, The Irony — CNN Opens Gates, NYT Shuts Them
– CNN.com Outlines Move From Pay Video To Hybrid
– Exclusive: CNN Breaks Out Of Premium-Only Online Video Shell
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