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CNN+ Could See Significant Cuts After a Slow Start

CNN initially planned to invest around $1 billion in the streaming service over the next four years.

Eduardo Razo

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The initial investments that would play out over the next four years into CNN+ will reportedly be cut dramatically due to a low adoption rate. 

According to Axios, CNN initially planned to invest around $1 billion in the streaming service over the next four years. The report also states that $300 million has been spent on CNN+, including a sizable marketing investment.

Nonetheless, that will change as hundreds of millions of dollars are expected to be cut from that original investment total. In addition, the company’s new leadership team still has yet to decide the ultimate fate of CNN+ since the network’s new boss, Chris Licht, will start on May 1.

With assistance from consulting firm McKinsey, CNN leaders initially expected to bring in around 2 million subscribers in the U.S. in CNN+’s first year and then gradually bring 15-18 million subscribers after four years.

Axios adds that the subscriber expectations will need to be dramatically reduced if the investments are cut. However, there might be some glimmer of help that can boost the numbers as CNN+ launched this week on Roku, one of the largest smart TV companies in the country, which should help boost subscriber numbers.

Nonetheless, there is some criticism from within, as one top executive stated that there is a sense of disorder internally as to why the cable news channel didn’t move the launch of CNN+ until after the Discovery merger.

The same source told Axios that the debut of CNN+ felt hurried to stake a claim over the streaming service and the network’s future ahead of the merger. 

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Media Business

NAB Announces 33% Increase in Membership Dues

The decision was approved overwhelmingly by the NAB Board of Directors.

Maddy Troy

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The National Association of Broadcasters (NAB) has announced an increase in membership dues following substantial revenue losses resulting from the cancellation of two NAB Shows due to the COVID-19 pandemic. Beginning January 1, 2024, radio and television members will pay 33.3% more in dues.

In a recent note to members, Joint Board Chairs Perry Sook and Dave Santrella stated that the dues increase aims to enhance the association’s financial stability and strengthen its advocacy for members’ interests. The decision was approved overwhelmingly by the NAB Board of Directors after extensive discussions and recommendations from the NAB Dues Committee, which comprises representatives from radio and television members.

NAB believes that the dues increase is necessary to address emerging challenges posed by Big Tech and the auto industry. It intends to utilize the additional funds to continue its efforts in ensuring the prominence of AM/FM radio in automotive systems, facilitating the adoption of NEXTGEN TV, advocating for fair competition for broadcasters, and reducing regulatory fees.

The cancellation of the NAB Shows in 2020 and 2021 due to the pandemic led to significant revenue losses for the association. As nearly 75% of its funding comes from these events, the financial impact has been substantial.

Despite implementing cost-cutting measures to align its budget with industry priorities, NAB has decided to increase dues as part of a comprehensive strategy to maintain its financial health and effectively represent the industry in Washington, D.C.

NAB has assured members who have been paying the earlier pandemic assessment on an annualized basis that they will not experience a significant change in annual dues. The association plans to provide new dues calculations to each member later this summer.

“We understand the challenges faced by our stations and recognize the competition they encounter from Big Tech companies with vast resources,” the note concluded. “We are requesting our members’ support to ensure the strength of our organization and protect their interests in an increasingly competitive media landscape.”

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Global Investigative Journalism Network Names New Executive Director

David Kaplan, the founding executive director of GIJN, had previously announced his plan to retire in 2023.

Maddy Troy

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Emilia Díaz-Struck has been appointed as the new executive director of the Global Investigative Journalism Network (GIJN), a consortium consisting of over 240 nonprofit organizations dedicated to investigative journalism worldwide.

According to Editor and Publisher, Díaz-Struck will initially join GIJN as an editor-at-large in mid-August, transitioning to the role of executive director in September during the network’s biennial conference in Gothenburg, Sweden, scheduled for September 19-22.

David Kaplan, the founding executive director of GIJN, had previously announced his plan to retire in 2023. Kaplan has been instrumental in expanding GIJN’s activities and staff over the past decade.

Díaz-Struck brings with her a wealth of experience from her work at the International Consortium of Investigative Journalists (ICIJ), where she played a pivotal role in groundbreaking global investigations focused on corruption and money laundering, including the Pulitzer Prize-winning Panama Papers.

Brant Houston, chair of the GIJN board of directors, expressed unanimous support for Díaz-Struck’s selection after an extensive five-month search process.

“We are delighted to have Emilia Díaz-Struck join GIJN as executive director,” Houston stated. “Highly regarded within the investigative journalism community, she possesses a diverse range of experience and skills, having worked as a reporter, data editor, co-founder of a local media organization, journalism educator, and manager of impactful global investigative collaborations. With her vision, passion, and expertise, she is well-equipped to lead GIJN during a time of significant challenges for investigative reporting worldwide.”

In response to her appointment, Díaz-Struck expressed her enthusiasm for working alongside GIJN’s exceptional staff across 24 countries, as well as the board and the global investigative journalism community. She emphasized the critical role played by GIJN in supporting investigative journalists.

“We are currently facing both exciting and challenging times in our profession,” Díaz-Struck said. “Our focus will remain on cultivating an environment that facilitates the exchange of knowledge, innovative techniques, and resources among journalists. This collaborative approach will contribute to the development of stories that are vital to democracies and citizens across continents. The courage, quality, and passion demonstrated by our global community in every investigation continue to inspire me. It is an immense honor to be in a position where I can contribute to shaping the future of our craft together.”

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The New York Times Agrees with Newsroom Union on Pay Increases

The union has announced that members will vote on the ratification of the five-year deal in the upcoming week.

Maddy Troy

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The New York Times has reached a new contract agreement with the union representing its newsroom employees, bringing an end to more than two years of contentious negotiations and a 24-hour strike.

The proposed agreement, once ratified, will provide immediate salary increases of up to 12.5 percent for union members, covering the past two years and 2023. It will also raise the minimum salary requirement to $65,000, a significant increase from the previous amount of around $37,500. Contractual raises have not been received by union members since 2020, as the previous contract expired in March 2021.

Under the terms of the contract, the median salary for reporters in the union would be approximately $160,000. The negotiating union, a part of the NewsGuild of New York, represents nearly 1,500 employees across various departments within the company, including the newsroom and advertising. The New York Times has over 1,800 people working in its newsroom.

The union has announced that members will vote on the ratification of the five-year deal in the upcoming week. Bill Baker, The New York Times Guild’s unit chair, expressed satisfaction with the agreement, stating, “This deal is a victory for all the union members who fought for a fair contract that rewards our hard work and sacrifice. It shows that the company cannot take us for granted and must be held accountable.”

Cliff Levy, a Times deputy managing editor, shared his support for the contract in an email to Times union members.

“From the beginning of this bargaining process, we’ve been determined to reach a contract that shows how much we value the contributions of NewsGuild members to The Times’s success,” Mr. Levy said.

The contract encompasses provisions regarding hybrid work arrangements and introduces paid sabbatical leave, granting four weeks off for every ten years of service at the company. The company has agreed that new newsroom positions, including any expansion into local markets, will be included in the union and receive fair minimum salaries.

The bargaining process for the contract was often intense, with disagreements arising over salaries, health and retirement benefits, and other matters. The union accused The Times of delaying negotiations and not sharing profits with employees, while Times executives cited the need for cautious budgeting amid economic uncertainty.

In December, members of the Times Guild organized a one-day strike, a rare occurrence for the publication. Last month, union members protested outside the company’s annual stockholder meeting and submitted a letter to publisher A.G. Sulzberger, signed by over 1,000 members, conveying their dissatisfaction. The letter stated, “Enough is enough.”

If approved, the new contract will cover the period from 2021 through February 2026. Union members will receive a one-time retroactive bonus of 7 percent of their base pay from the expiration of the previous contract.

Employees will receive initial salary increases on a sliding scale, with larger raises for those earning lower salaries. Those making under $100,000 per year will see an immediate 12.5 percent increase, while those earning over $160,000 per year will receive a 10.6 percent bump. All Guild employees will also receive a 3.25 percent increase in 2024 and a 3 percent increase in 2025.

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