Can CNN’s Hiring Spree Get People to Pay for Streaming News?

A couple of months ago, CNN’s forthcoming streaming channel was perceived as little more than a curiosity in the television news business: just another cable dinosaur trying to make the uneasy transition into the digital future.

In fact, the plan to start CNN+, which is expected to go live by late March, amounted to a late arrival to the subscription-based streaming party, more than three years after Fox News launched Fox Nation.

Then the hirings began.

In December, Chris Wallace, Fox News’s most decorated news anchor, said he was leaving his network home of 18 years for CNN+. Next came Audie Cornish, the popular co-host of “All Things Considered” on NPR, who said in January that she was leaving public radio to host a weekly streaming show.

notably violent language in urging a gathering of conservatives to publicly confront Dr. Anthony Fauci.

  • Jan. 6 Texts: Three prominent Fox News hosts — Laura Ingraham, Sean Hannity and Brian Kilmeade — texted Mark Meadows during the Jan. 6 riot urging him to tell Donald Trump to try to stop it.
  • Chris Wallace Departs: The anchor’s announcement that he was leaving Fox News for CNN came as right-wing hosts have increasingly set the channel’s agenda.
  • Contributors Quit: Jonah Goldberg and Stephen Hayes quit the network in protest over Tucker Carlson’s “Patriot Purge” special.
  • He is gambling that CNN+ can entice new viewers — and bring back some old ones. CNN’s traditional broadcast viewership has dropped significantly from a year ago, thanks to a post-Trump slump and waning audience interest, and the network recently fired its top-rated anchor, Chris Cuomo, amid an ethics scandal.

    Mr. Zucker is turning to a strategy honed during his days as the executive producer of NBC’s “Today” show in the 1990s, mixing hard news with a heavy dose of lifestyle coverage and tips on how to bake a pear cobbler. In marketing materials, CNN+ has urged viewers to “grab a coffee” while flipping on shows promoted as “never finicky” and “the silver lining beyond today’s toughest headlines.”

    struggled to find success with shows that riff on current events. One Netflix executive conceded in 2019 that topical programming was “a challenge” when it came to on-demand, watch-at-your-own-pace streamers.

    Symone D. Sanders, a former adviser to President Biden. (NBC News also has separate digital offerings for hard news and lifestyle coverage.)

    For news executives, finding a winning formula in the streaming game is now an urgent priority.

    Streaming has supplanted cable as the main home delivery system for entertainment, often on the strength of addictive series like “Squid Game.” For a while, though, old-fashioned cable news clung on, with CNN, MSNBC and Fox News attracting record audiences in recent years. In case of emergency — a pandemic, civil unrest, a presidential election, a Capitol riot — viewers still tuned in en masse.

    After former President Donald J. Trump left office, news ratings nose-dived and cable subscriptions continued to plummet — an estimated four million households dropped their paid TV subscriptions last year, according to the research firm MoffettNathanson.

    Fox Nation and CNN+ both rely on a business model dependent on paid subscriptions, hence the efforts by both to generate a wide variety of programming.

    “A subscriber every month only has to find one thing that they want,” Mr. Zucker said in the interview. “We don’t need the subscriber to be interested in everything we’re offering, but they need to be interested in something.”

    Mr. Zucker said CNN+ was aiming at three buckets of potential subscribers. He is seeking to entice loyal CNN viewers into paying for streaming programs featuring hosts familiar from the cable channel: Anderson Cooper will have two, including one on parenting; Fareed Zakaria is helming a show examining historical events; and Jake Tapper will host “Jake Tapper’s Book Club,” in which he interviews authors.

    The other would-be subscribers, Mr. Zucker said, are news and documentary fans who want more nonfiction television, as well as younger people who don’t pay for cable.

    CNN, though, is not ignoring the needs of its flagship cable network, which ranked third last year behind Fox News and MSNBC in total audience.

    Mr. Zucker recently reached out to representatives for Gayle King, the star CBS News anchor, about the prospect of her taking over the weekday 9 p.m. hour on CNN, said two people with knowledge of the approach. CNN has not named a permanent anchor for the prime-time slot since Mr. Cuomo was fired in December after revelations that he assisted with the efforts of his brother, former Gov. Andrew M. Cuomo of New York, to fend off sexual harassment allegations.

    CNN+ is also expected to include the breaking news and political coverage that CNN viewers are accustomed to — a feature that could pose difficulties for the network down the road. CNN commands a high price from cable distributors, who may cry foul if CNN+ includes too much news programming that potentially competes with the cable offering. For instance, Wolf Blitzer, the host of “The Situation Room” on CNN at 6 p.m., will also appear on CNN+ to anchor a “traditional evening news show with a sleek, modern twist.”

    CNN’s parent company, WarnerMedia, which is on the verge of a megamerger with Discovery Inc., appears willing to take the risk. The company is placing a significant financial bet on CNN+, budgeting for 500 additional employees, including producers, reporters, engineers and programmers, said Andrew Morse, CNN’s chief digital officer. The company is also renting an additional floor of its headquarters in Midtown Manhattan to accommodate the hires.

    “What we’re building at CNN+ is not a side hustle,” Mr. Morse said.

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    Riot Games to Pay $100 Million in Gender Discrimination Case

    Riot Games, the video game maker behind popular titles like League of Legends and Valorant, said on Monday evening that it had agreed to pay $100 million to settle a gender discrimination suit with more than 2,000 current and former female employees.

    The class-action lawsuit, which was filed in 2018, was originally on track for a $10 million settlement, but in early 2020 two California employment agencies took the unusual step of intervening to block the settlement, arguing that the women could be entitled to over $400 million. Separate of the lawsuit, the state had been investigating the company after claims of sexual harassment, discrimination, unequal pay and retaliation against women.

    If the settlement is approved by the Los Angeles Superior Court, it will “send the message that all industries in California, including the gaming industry, must provide equal pay and workplaces free from discrimination and harassment,” Kevin Kish, the director of the California Department of Fair Employment and Housing, said in a statement.

    Under the terms of the agreement, more than 1,000 full-time employees and 1,300 contractors dating back to November 2014 would split $80 million, with another $20 million going to lawyers’ fees and other costs. Riot also agreed to fund a diversity and inclusion program and consented to a three-year, third-party analysis of gender equity in employee pay and job assignments, as well as to an audit of workplace investigations.

    Activision Blizzard — Riot has also contended with frequent accusations of harassment and a work environment that women described as sexist and toxic.

    sued over claims he sexually harassed his former executive assistant. That case is still pending. A committee formed by the company’s board of directors later said it found no evidence of the claims against Mr. Laurent.

    In an email to the company’s employees viewed by The New York Times, sent minutes before the settlement announcement, Mr. Laurent wrote that the timing “isn’t ideal” but the “final details of the agreement came together quickly.” He said he hoped the settlement “symbolizes a moment where we move forward as a united company.”

    The proposed settlement on Monday was hailed as a win for women at Riot.

    “I hope this case serves as an example for other studios and an inspiration for women in the industry at large,” one plaintiff, Jes Negron, said in a statement issued through a lawyer. “Women in gaming do not have to suffer inequity and harassment in silence — change is possible.”

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    CNN Fires Chris Cuomo Over Role in Andrew Cuomo’s Scandal

    As the gregarious and sometimes combative host of CNN’s 9 p.m. hour, Mr. Cuomo was at the peak of a broadcast journalism career that he had forged outside of his famed political family. But it was the troubles of his brother, who resigned the governorship in August, that ultimately embroiled Mr. Cuomo in a controversy that appeared to precipitate his dismissal.

    “This is not how I want my time at CNN to end but I have already told you why and how I helped my brother,” Chris Cuomo said in a statement earlier on Saturday. “So let me now say as disappointing as this is, I could not be more proud of the team at Cuomo Prime Time and the work we did as CNN’s #1 show in the most competitive time slot.”

    Until last month, Mr. Cuomo had enjoyed the support of CNN’s president, Jeff Zucker, and he faced no discipline for his behind-the-scenes strategizing with Andrew Cuomo’s political aides, a breach of basic journalistic norms.

    But documents released on Nov. 29 revealed that the anchor offered advice on Andrew Cuomo’s public statements and made efforts to uncover the status of pending articles at other news outlets, including The New Yorker and Politico, concerning harassment allegations against his brother.

    Mr. Zucker — who had been steadfast in backing Chris Cuomo, at one point saying the anchor was “human” and facing “very unique circumstances” — informed the anchor on Saturday that he was being fired. “It goes without saying that these decisions are not easy, and there are a lot of complex factors involved,” Mr. Zucker wrote in a memo to CNN staff.

    The spectacle of a high-profile anchor advising his powerful politician brother amid scandal was a longstanding headache for many CNN journalists, who privately expressed discomfort at actions that, in their view, compromised the network’s credibility. The CNN anchor Jake Tapper went public with his concerns in May, telling The New York Times that his colleague had “put us in a bad spot,” adding, “I cannot imagine a world in which anybody in journalism thinks that that was appropriate.”

    Even so, the timing of Mr. Cuomo’s firing, on a Saturday at 5 p.m., caught many members of the CNN newsroom off guard.

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    Axel Springer Removes Julian Reichelt After Times Report

    Germany’s most powerful newspaper removed its top editor Monday after months of defending his sexual relationships with women in the workplace as the scandal began to envelop the paper’s globally ambitious parent company, Axel Springer.

    Bild, a center-right tabloid that has fed popular anger at Chancellor Angela Merkel and her Covid-19 restrictions, dismissed the editor in chief, Julian Reichelt, after The New York Times reported on details of Mr. Reichelt’s relationship with a trainee, who testified during an independent legal investigation that in 2018 he had summoned her to a hotel near the office for sex and asked her to keep a payment secret. Hours after Mr. Reichelt was ousted, the newsmagazine Der Spiegel published allegations that Mr. Reichelt had abused his position to pursue relationships with several women on his staff.

    The dismissal marked the belated arrival of the global #MeToo movement at Axel Springer — and it came as the German company is making significant investments in the American market, including its acquisition this summer of Politico for $1 billion. Axel Springer faced pressure in the United States and Germany to explain two recent revelations: What the investigation into Mr. Reichelt’s conduct found, and how the chief executive, Mathias Döpfner, responded to the investigation. In a text message to a friend obtained by The Times, Mr. Döpfner seemed to link the scrutiny of Mr. Reichelt’s behavior to the editor’s divisive politics, casting him as a bulwark against a return of Communist-style oppression in the guise of Covid rules.

    The company said in a statement that Mr. Reichelt had “not clearly separated private and professional matters,” and had misled the board. Mr. Döpfner, in a statement, also praised Mr. Reichelt for his journalistic leadership and for launching Bild-Tv, a new television station in the combative style of American cable news. He said Mr. Reichelt’s replacement, Johannes Boie, would combine “journalistic excellence with modern leadership.” Mr. Reichelt has denied abusing his authority, and didn’t respond to an email seeking comment.

    surge in right-wing European media while capturing a new global online generation. Its acquisition of publications like Politico and Business Insider, which it bought for $442 million in 2015, is a major part of that strategy.

    The move to dismiss Mr. Reichelt was a significant reversal for a company that prides itself on standing up to Germany’s more liberal media establishment. Axel Springer had been bracing for reaction from its new American employees to the reports of Mr. Reichelt’s conduct, but two people familiar with the company’s decision Monday said that a furious storm in German media added pressure on Mr. Döpfner to act. German critics blasted the company, in particular, for its role in killing a story by a rival publisher, Ippen, whose journalists said in a letter that they were set to reveal details of Mr. Reichelt’s alleged abuse of power.

    “That made the whole story bigger than it was before,” said Moritz Tschermak, the co-author of a recent book about Bild. “Somehow it became not a story about Reichelt and Springer but a story about freedom of the press.”

    In an inquiry this spring, the company said it had cleared Mr. Reichelt, who apologized at the time for unspecified “mistakes” and remained in his role. Axel Springer appeared to blame the opaque German legal process in part for its reversal, releasing a statement noting that it learned some details of its own lawyers’ inquiry from the media. The company also said it had learned unspecified new information about Mr. Reichelt’s conduct, and that the editor had misled the company’s board.

    Axel Springer also said in its statement that it would take legal action against third parties who it claimed tried to illegally influence the company’s compliance investigation, “apparently with the aim of removing Julian Reichelt from office and damaging Bild and Axel Springer.”

    Mr. Döpfner, the chief executive, said in a statement in March. “However, having assessed everything that was revealed as part of the investigation process, we consider a parting of the ways to be inappropriate.”

    Mr. Reichelt was reinstated with a co-editor in chief, Alexandra Würzbach, the editor of Bild’s Sunday edition, who had taken over his duties in his absence.

    In explaining its decision on Monday to remove Mr. Reichelt as editor, the publisher cited “revelations” about his behavior that had “come to light in recent days, following media reports.”

    Pressure built in Germany after Ippen Media, which publishes a group of websites as well as a print competitor to Bild in Munich, decided on Friday to pull its own in-depth investigation into Mr. Reichelt. That revelation, in The Times and then in a letter from Ippen’s own investigative team, outraged reporters in Berlin, leading one to ask Chancellor Merkel’s spokesman at a news conference on Monday whether that decision had raised concerns in the German government that freedom of the press could be in danger. Ms. Merkel’s spokesman, Steffen Seibert, declined to comment.

    article published Monday in the magazine Der Spiegel, which first broke the news this spring of the investigation into Mr. Reichelt. The article described Mr. Reichelt as a man “obsessed with power” who had a “pattern” of both promoting and seducing young women at Bild.

    His sexual relationships with women on his staff were known in Bild’s office, Der Spiegel reported.

    The magazine also raised further questions about Axel Springer’s internal investigation, which had promised anonymity to women who testified. Nonetheless, one of the women received a message from a “confidant” of Mr. Reichelt, urging her not to speak to investigators, Der Spiegel reported.

    Germany’s publishing world is dominated by large companies, largely run by men, where reluctance to be seen as criticizing one another runs deep. Ippen cited such a motivation behind its last-minute decision to withhold the report.

    The Frankfurter Rundschau, based in Frankfurt am Main, one of the regional newspapers owned by the Ippen Media company that had planned to publish the investigation, ran an editorial on Monday calling the decision damaging to their relationship of trust with their readers.

    The German Journalists’ Association criticized Ippen’s decision not to publish the investigation. But journalists discussing the reporting also raised questions about why the world of German publishing had struggled to have its own MeToo reckoning, and why it took attention from American media to prompt this action.

    As the German media world focused on the turmoil at Axel Springer, the staff of Politico, whose acquisition by Springer is expected to close as soon as this week, was largely focused elsewhere. Journalists there are considering forming a union, and organizers have set a deadline of this month to gather support.

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