Speaker 1: Welcome to another episode of Strictly Business, the podcast in
Speaker 1: which we talked with some of the brightest minds working
Speaker 1: in the media business today. I'm Andrew Wallenstein with Variety.
Speaker 1: This week we're bringing you a special bonus episode featuring
Speaker 1: an exclusive interview with Andrew Morse, chief Digital officer for
Speaker 1: CNN Worldwide. He's overseeing CNN Plus, the long awaited new
Speaker 1: streaming service the news brand plans to launch early next year.
Speaker 1: That's just one of the key details CNN finally revealed today,
Speaker 1: but it leaves a host of questions we'll get into
Speaker 1: with our guest. It's all coming up on this episode
Speaker 1: of Strictly Business. Welcome back to another episode of Strictly Business,
Speaker 1: where we're joined today by Andrew Morse, the lead executive
Speaker 1: overseeing and CNN Plus. Thanks so much for doing the interview, Andrew.
Speaker 1: Thank you, Andrew, and it's it's nice to be here cool.
Speaker 1: So a quick recap for those who haven't heard what
Speaker 1: your company announced today. CNN Plus is a video streaming
Speaker 1: service that will launch in the first quarter of two.
Speaker 1: Subscribers can expect eight to twelve hours of live content
Speaker 1: each day, featuring well known CNN talent as well as
Speaker 1: some new names. Catalog of CNN long form programming will
Speaker 1: be offered as well. This is obviously a huge undertaking, Andrew. So,
Speaker 1: I mean, is it safe to say this is like
Speaker 1: the biggest launch coming out of CNN since the rollout
Speaker 1: of the CNN website, which you oversee as well. I
Speaker 1: think it's bigger than that. I think that this is
Speaker 1: the single biggest launch that CNN has had since Ted
Speaker 1: Turner launch the network in June of Um. This stakes
Speaker 1: are that high for us, The opportunity is that big,
Speaker 1: and we are that enthusiastic about this. And I would
Speaker 1: imagine the cost has got to be considerable here. Here
Speaker 1: you're gonna adding what hundreds of employees to support this,
Speaker 1: So you know, from a cost perspective, is this bigger
Speaker 1: than anything you've you've spent on? Yeah? I think that's important.
Speaker 1: I mean, the magnitude of this is really significant. And again,
Speaker 1: if you think about it, I mean the question that
Speaker 1: you just asked was a great one. You know, CNN
Speaker 1: pioneered cable news in eight We really redefined or defined
Speaker 1: what digital news would look like when we launched CNN
Speaker 1: dot Com and those were both really significant launches um
Speaker 1: in order for us to make this next evolution. In
Speaker 1: order for us to take this next step, we we
Speaker 1: can't take a half measure. We have to go all in.
Speaker 1: And this is a very substantial bet for us. So
Speaker 1: the investment that the company is making will be commensurate
Speaker 1: to the to the size of our ambition. A few
Speaker 1: key facts that we're missing from the announcement today, I
Speaker 1: obviously need to ask you about right off the bat,
Speaker 1: first being price. Uh have you guys come up with
Speaker 1: a price point yet? And is this an AD supported service? UM?
Speaker 1: So it's not going to be AD supported um UM
Speaker 1: to start UM, we are launching this as a as
Speaker 1: a paid as FOD service. It won't be a vod
Speaker 1: UM in terms of price point. That is something that
Speaker 1: we are discussing quite a bit. We're doing quite a
Speaker 1: substantial amount of research and as we continue to refine
Speaker 1: the product and the go to market strategy over the
Speaker 1: course of the next few months. Uh, we will come
Speaker 1: up with the right price point. And is there a
Speaker 1: reason And it sounds like you know, it's possible in
Speaker 1: the future you could add an AD supported component, but
Speaker 1: why not at the launch? You know, the first thing
Speaker 1: that we're focused on now is getting the product right
Speaker 1: for customers. You know, it's important to note that CNN
Speaker 1: Plus is going to be a standalone, direct to consumer
Speaker 1: paid subscription service, and so really what we're trying to
Speaker 1: do is unique. There isn't a service like this that
Speaker 1: currently exists in the marketplace. And the difference with paid
Speaker 1: subscription services compared to add supported services UM or or
Speaker 1: most traditional media sources is that UM the customer really
Speaker 1: dictates UH to a certain degree, what the product is.
Speaker 1: And so for us, the first and most important thing
Speaker 1: is to build a product that customers will love, to
Speaker 1: make sure that the content is extraordinary. And then once
Speaker 1: we get the product up and launched and in customers hands,
Speaker 1: we think that that having an advertising component UM will
Speaker 1: be an important part of the product as we go forward.
Speaker 1: Another key question, are you launching just in the US
Speaker 1: or is this a global product? It is a global product,
Speaker 1: and in fact, that's one of the real advantages that
Speaker 1: we have. You know, if you look at CNN, UH,
Speaker 1: you look at the advantages that we have, we're really
Speaker 1: one of the world's only global news brands. I mean, really,
Speaker 1: outside of the BBC and CNN, you'd be hard pressed
Speaker 1: to to identify a real global news brand with a
Speaker 1: kind of reach and resources that we have. And so
Speaker 1: as we've looked at the market opportunity and we've looked at,
Speaker 1: um really who this product can reach and how big
Speaker 1: it might be able to be. We think one of
Speaker 1: the distinct advantages is for Recipe Global that said at launch,
Speaker 1: it's going to launch in the US first, We're gonna
Speaker 1: get that market right, and then we will roll out
Speaker 1: internationally as we go. Got it. Um, You haven't revealed
Speaker 1: much yet about specific content, so, and I know there's
Speaker 1: a limit to what you could say, but a simple question,
Speaker 1: is this a twenty four hour news network? Uh? You know?
Speaker 1: Do I do I need CNN if I have CNN Plus? Well,
Speaker 1: to answer your first question, is it a twenty for
Speaker 1: our news network? No? And the reason why is we
Speaker 1: have one and it's called CNN. And that's really important
Speaker 1: here is we have an incredibly successful, uh linear business.
Speaker 1: The CNN television network is stronger than it's ever been.
Speaker 1: It's coming off the best year in act in its history.
Speaker 1: And by the same token, we have the world's number
Speaker 1: one out supported digital news service and that's as strong
Speaker 1: as it's ever been. CNN Plus is a totally separate, distinct,
Speaker 1: additive service and the content that we're creating UM will
Speaker 1: be unique and distinct from what you get on the
Speaker 1: US network. So that's really important. The the CNN television
Speaker 1: network will remain the CNN television network, and none of
Speaker 1: the core programming that that viewers CNR our television network,
Speaker 1: will be available on CNN Plus. We're gonna We're gonna
Speaker 1: continue to invest in our television network. The kind of
Speaker 1: content that you'll see UM will be surprising, distinct, original,
Speaker 1: and provide provide users with a with a really different
Speaker 1: experience than what they currently get from our our television
Speaker 1: and digital properties. To me, the quintessential CNN is getting
Speaker 1: to the scene of a huge breaking story like like
Speaker 1: say the tragedy and at surfside in Miami. Would we
Speaker 1: see CNN plus function and anything like that. Yes, and no,
Speaker 1: and and it's really important. And it's why cnmplus is
Speaker 1: so important because UM, again, there is nothing like CNN
Speaker 1: in terms of our global reach, the way we respond
Speaker 1: to stories, the way we deploy resources, and the way
Speaker 1: we promise our users immediate up to date news and information.
Speaker 1: And that's what CNM will continue to do in CNN Plus.
Speaker 1: It will still be really important to provide viewers of
Speaker 1: front row seat to what's happening, both the important and
Speaker 1: the interesting. Um. But we have to do it in
Speaker 1: different ways. I think it gives us an opportunity to
Speaker 1: be more contextual, to spend more time with individual stories,
Speaker 1: to go deeper, to provide different angles, also provide different programming.
Speaker 1: So around the news, I think you'll provide you'll you'll
Speaker 1: you'll see a really distinct experience from what you'll get
Speaker 1: on the on the network. But it's also important to
Speaker 1: note that like we are not attempting to create a
Speaker 1: twenty four seven news wheel, that's not what CNN Plus
Speaker 1: is going to be. The live programming will have a
Speaker 1: distinct personality beyond demand programming. Um again, well, well will
Speaker 1: serve a very different need and uh, this service will
Speaker 1: be quite different from what we do on the air.
Speaker 1: But will it's mere existence changed the complexion of what
Speaker 1: we understand CNN itself to be on TV? Because you know,
Speaker 1: I wonder you know again, let's go to my surf
Speaker 1: side example. Maybe instead of going you know, six hours
Speaker 1: straight on the CNN airwaves on our five you're gonna say,
Speaker 1: you know what, we're going over to a different story,
Speaker 1: but if you want to continue the surf side experience,
Speaker 1: go to CNN Plus. Well, that kind of relationship of
Speaker 1: the network throwing to the streaming service happen. And yes,
Speaker 1: does it change CNN as we know it, No, it will.
Speaker 1: It won't change CNN as we know it. In fact,
Speaker 1: I think CNN Plus allows CNN to continue to be
Speaker 1: CNN and to do with CNN does really well. I
Speaker 1: do think that this service will be complementary, and I
Speaker 1: do think there will be opportunities to push between the
Speaker 1: services for for more context and for more analysis, and
Speaker 1: for different kinds of programming. For complementary programming. UM, I
Speaker 1: think CNN will continue to do what it does best,
Speaker 1: which is to cover the most important stories of the day,
Speaker 1: the most interesting stories of the day, to be topical,
Speaker 1: to be on the news, to be urgent. Uh. And again,
Speaker 1: CNN Plus will have a bit of a different personality
Speaker 1: CNN Plus will UH have. U will give us the
Speaker 1: opportunity to explore different topics that we don't always have
Speaker 1: a chance to cover on on the US network, really
Speaker 1: in in greater depth. UM. We certainly do cover topics
Speaker 1: like climate, like space, and science certainly like race and identity.
Speaker 1: But the ability to spend much more time when you're
Speaker 1: not having to deal just to the linear schedule gives
Speaker 1: us the opportunity to explore those topics much more deeply.
Speaker 1: And also when you think about the daily programming we're
Speaker 1: going to do, we think there's an opportunity to go
Speaker 1: more in depth, to become more analytical. But but I
Speaker 1: think again it's it's also really important to note that
Speaker 1: what we are conceiving of a service that leans into
Speaker 1: the very best of what our DNA is, you're also
Speaker 1: going to see things that surprise you. You're gonna see
Speaker 1: things across topics and across different formats, and you're gonna
Speaker 1: see different kinds of talent and personalities that you you
Speaker 1: simply wouldn't see on the US network that we think
Speaker 1: there's a real audience for in CNN Plus. So you've
Speaker 1: characterized CNN plus is having a different personality. Can you
Speaker 1: define it beyond saying it's surprising? Is it is it
Speaker 1: more irreverent? Is it less traditional? Is it is it
Speaker 1: more ideological? I have to ask is it going to
Speaker 1: be something that you know well, you guys are known
Speaker 1: as the liberal network. And if you really want to
Speaker 1: go deep lib here CNN Plus. Well, I don't think
Speaker 1: anybody who is looking for deep lib would would seek
Speaker 1: out CNN. It's just not what we do. But no,
Speaker 1: it's not gonna be ideological. We're We're just not in
Speaker 1: that game. You know, We're we're not an opinion network.
Speaker 1: We're a news network. We're a news brand, So it
Speaker 1: will have news DNA for sure. You know, We're not
Speaker 1: going to try to be reverend for being you know,
Speaker 1: for a reverend sake, because I don't think that's what
Speaker 1: audiences want. I think people turn to t N CNN
Speaker 1: for trust and for credibility, for authenticity. UM. I say,
Speaker 1: the personality we describe as smart and entertaining, and the
Speaker 1: two are not mutually exclusive. I think we can provide
Speaker 1: a level of depth and intelligence and context and perspective
Speaker 1: that you would associate with CNN, and we can also
Speaker 1: we can also be entertaining. And I think there is
Speaker 1: room as you consider, um what CNN plus is, for
Speaker 1: us to be a little bit more expansive. Um. You know,
Speaker 1: as we think about you know, what is smart and
Speaker 1: what is entertaining? Well, does entertaining mean entertainment. Can I
Speaker 1: see a scripted comedy, Can I see a daily show
Speaker 1: type humor about the news? Again, I think you will
Speaker 1: see formats and topics, definitely the push the boundaries a
Speaker 1: little bit and and and I think that's okay. I
Speaker 1: think that's what audiences. But I would also describe a
Speaker 1: lot of the programming that our original films and series
Speaker 1: groups have been doing for the last seven or eight
Speaker 1: years as entertaining. I would say Anthony Bourdain's Parts Unknown
Speaker 1: was entertaining. I think this Stanley Tucci searching for Italy
Speaker 1: show is entertaining. And I think, you know, again, when
Speaker 1: you think about what audiences want and why they turn
Speaker 1: to CNN, UM, there's a host of really high quality,
Speaker 1: UM original nonfiction storytelling that can be really entertaining as
Speaker 1: well as you know, some of the provocative notions that
Speaker 1: you just reference. I think we're gonna have to try things.
Speaker 1: We can't be afraid to take some chances on this platform. Yeah,
Speaker 1: um from you know, what has been reported is is
Speaker 1: that you know, CNN has turned to a lot of
Speaker 1: its key talent to get their buy in, and I
Speaker 1: guess have shows on CNN plus you see Anderson Cooper
Speaker 1: on TV and maybe you get to see him in
Speaker 1: his own show on CNN plus. What is the process
Speaker 1: been in terms of convincing talent to do this as
Speaker 1: it required a lot of contractual rearranging. Uh? Yeah, Like
Speaker 1: there is wild enthusiasm for this across CNN um um.
Speaker 1: You know, as we have begun to to ramp up
Speaker 1: our plans and as we've had more conversations really across
Speaker 1: the n N from our talent, uh, to our producers,
Speaker 1: to our engineers and developers, to product managers, there is
Speaker 1: real enthusiasm for this product. And I think again you
Speaker 1: can expect the service to include you know, original programming,
Speaker 1: not not what you see from them on the US network,
Speaker 1: but from from Anderson Cooper, from Don Lemon or Jake
Speaker 1: Tapper or Poppy Harlow, you know, from Van Jones. You know,
Speaker 1: I think I think you will see a different side
Speaker 1: of them. I think you will see a connection that
Speaker 1: that these folks have with their fans, um who have
Speaker 1: turned to them, you know, for their authenticity, for their authority,
Speaker 1: and also because they're real human beings. You know, if
Speaker 1: you think about the connection that our audiences of forged
Speaker 1: asanga Gupta for example, over the course of the last year, UM,
Speaker 1: as we've lived through this global pandemic, UM people have
Speaker 1: really come to know our talent and as a result,
Speaker 1: our talent are really excited about this, and so we
Speaker 1: think CNN Plus creates a great opportunity. I should say
Speaker 1: also though, like as I mentioned, the enthusiasm cuts across
Speaker 1: the whole company UM and that's important to note too,
Speaker 1: because we're having to really um you know, build the
Speaker 1: proverbial engine of the cars. We're driving it. And so
Speaker 1: we're in the process of hiring about four hundred and
Speaker 1: fifty people UM for CNN plus over the next six
Speaker 1: to nine months. I mean, it is a massive undertaking,
Speaker 1: and that's across every discipline. So about half those roles
Speaker 1: are in the content spaces, you know, the production teams,
Speaker 1: and about half are in the engineering and product and
Speaker 1: technology and analytics and growth departments. I mean, this is
Speaker 1: a it's a big undertaking, and so our current employees
Speaker 1: are really excited and we're trying to build an all
Speaker 1: star team as we go. So is this a team
Speaker 1: of four hundred and fifty or however many going to
Speaker 1: exist completely separately from CNN operations or is there some integration.
Speaker 1: Have you guys thought that through? Well, there there are
Speaker 1: two things. I mean, one is it is going to
Speaker 1: need its own staff. You can't build a product of
Speaker 1: this size with the kind of expectations that we have
Speaker 1: and not staff it properly. So it is going to
Speaker 1: have its own separate leadership team. We hired Alex McCallum
Speaker 1: recently from The New York Times to be the general
Speaker 1: manager of CNN Plus. She's our head of product and
Speaker 1: she helped the Times build their successful subscription businesses. We've
Speaker 1: brought on Rebecca Cutler, who has had just about every
Speaker 1: job throughout our CNN programming for a while, to lead
Speaker 1: our programming and production UM. But we're also and and
Speaker 1: so they're building independent staffs. But we're also getting help
Speaker 1: from all over the organizations. So the Original Series and
Speaker 1: Films group that's produced The Bourdain's and the Two Geese
Speaker 1: and films like RBG, they're leaning in and their help
Speaker 1: being developed scores of new series for us. So we're
Speaker 1: building out that department as well. So yes, it will
Speaker 1: have a separate and discrete staff. But this is such
Speaker 1: an important effort um, so that you know, again the
Speaker 1: films in series group led by Amy and tell Us
Speaker 1: will be a big part of it, and every part
Speaker 1: of CNN frankly, from HR to legal, to finance, to
Speaker 1: our TV teams to our core digital teams. UM. For
Speaker 1: this to be successful, UM, we've got to have the
Speaker 1: support from everybody in the organization. And the good news
Speaker 1: is everybody's really enthusiastic about it. I'm also curious about
Speaker 1: the enthusiasm at the A T and T level or
Speaker 1: really the the the level of involvement. UM. For instance,
Speaker 1: Jason Kyler, CEO Warner Media, has he been involved in
Speaker 1: this process? How how into this is a T and T? Well,
Speaker 1: there are a couple of things to stand that. I mean,
Speaker 1: we've been on this journey for a while now. So
Speaker 1: for the last few years, UH, CNN has been putting
Speaker 1: the pieces together and laying the groundwork for a director
Speaker 1: consumer future. And Jeff Zooker, you know, the president of
Speaker 1: CNN Worldwide and chairman of Warner Media News and Sports.
Speaker 1: Jeff has been UM as as as much of a
Speaker 1: proponent of of this journey as anyone, and as Jason
Speaker 1: came into the company about a year ago. UM, given
Speaker 1: his background, UM, given the work he did at Hulu
Speaker 1: given his mandate for for pushing Warner Media boldly into
Speaker 1: a director consumer future. Jason has been incredibly supportive of
Speaker 1: the path that we're on, and it's been a real
Speaker 1: team effort up and down the line. And you mentioned
Speaker 1: A T and T. They are really vested in the
Speaker 1: success of this, uh, this product as well. In fact,
Speaker 1: John Stanky made comments fairly recently talking about how enthusiastic
Speaker 1: he was to John's of course, the the A T
Speaker 1: and T CEO. Um. So it has been a great
Speaker 1: partnership and there is real support for CNN plus up
Speaker 1: and down the line. But that begs a few questions,
Speaker 1: the first being why you could argue, and maybe you'll
Speaker 1: argue against me, that CNN didn't necessarily need to launch
Speaker 1: its own branded, standalone thing. It could have been embedded
Speaker 1: in HBO Max, it could have been a tab of
Speaker 1: some sort. Uh, why not consolidate efforts? So what walk
Speaker 1: me through the rationale of not doing that? Was it
Speaker 1: even discussed? Well? Sure, I mean it makes sense as
Speaker 1: a consideration when you have a brand like CNN that
Speaker 1: is truly distinct and unique, and again you think about
Speaker 1: the opportunities, there isn't another news organization on the planet
Speaker 1: that could pull off what we're trying to pull off
Speaker 1: if you practically look at the advantages that we have
Speaker 1: were global. We reached two million people across digital and
Speaker 1: linear platforms every month UM. We have a rich history
Speaker 1: and tradition and video. We have a rich archive and
Speaker 1: library of nonfiction content, and we have the product and
Speaker 1: technology chops to be able to build a world class
Speaker 1: platform and and and there isn't another organization that can
Speaker 1: do that. And so I think the way we're looking
Speaker 1: at it is we have a tremendous entertainment subscription service
Speaker 1: in HBO max UM that is growing and thriving, and
Speaker 1: that is drawing new customers every day, and that allows
Speaker 1: HBO max to do what it does best and to
Speaker 1: reach their customers with a very clear value proposition. And
Speaker 1: of alongside that, the company can also have an unparalleled
Speaker 1: global news and information service. You've got a really powerful
Speaker 1: set of products that the company can roll out. If
Speaker 1: we were a different news organization, you might go a
Speaker 1: different path because you know, other news organizations frankly just
Speaker 1: don't have the resources that we do that you need
Speaker 1: to be able to build a standalone subscription service if
Speaker 1: you're just joining us. We're talking with Andrew Morse. He
Speaker 1: is the chief Digital officer of CNN Worldwide, and we'll
Speaker 1: be back with him in a minute. We're back with
Speaker 1: Andrew Morrise, the chief Digital officer of CNN Worldwide, who's
Speaker 1: tight taking us through CNN Plus. I mean, another thing
Speaker 1: I was wondering about is, of course, there's this pending
Speaker 1: merger next year between A T and T and Discovery. UH.
Speaker 1: You could argue that there's overlap between Discoveries prowess and
Speaker 1: unscripted content and a lot of the your catalog, which
Speaker 1: is long form unscripted. So is that a consideration in
Speaker 1: this in terms of you're launching before that merger is
Speaker 1: going to happen, But in the event that it does,
Speaker 1: I would imagine the existence of Discovery could really change things.
Speaker 1: You know. I can't really comment on on that at all.
Speaker 1: What I can say is we're on the track that
Speaker 1: we're on and we're building this service, um, you know,
Speaker 1: and we'll have to wait and see, you know, what
Speaker 1: happens with the merger. But right now we're just focused
Speaker 1: on building the platform, UH and working with Warner Media
Speaker 1: and A T and T to do that. You know,
Speaker 1: you referenced that what you're launching has been in the
Speaker 1: works for a while, and you actually came on this
Speaker 1: podcast nearly two years ago and we talked about the
Speaker 1: prospect of some kind of direct to consumer play. So
Speaker 1: let's you know, the flip side is what took so long? Why?
Speaker 1: You know, why has it taken so long to do
Speaker 1: something like this? Well, because nothing like this has been done,
Speaker 1: and the path to success here just it's not a
Speaker 1: straight line, especially when you're trying something with this degree
Speaker 1: of ambition. If if it were easy, somebody would have
Speaker 1: would have done this. You know. The fact is there
Speaker 1: are three news and information services right now with over
Speaker 1: a million paid digital subscribers, The New York Times, the
Speaker 1: Washington Post, in the Wall Street Journal, and all three
Speaker 1: of them, by the way, I had pretty thriving direct
Speaker 1: to consumer businesses subscription businesses before they made their pivot
Speaker 1: to digital. UM. There isn't a service like CNN Plus.
Speaker 1: And the reality is, especially when you're talking about product development,
Speaker 1: and that's what we're talking about here, it's not just
Speaker 1: about taking content and throwing it at the wall. Um.
Speaker 1: And and that's the thing I think people who would
Speaker 1: suggest or relate to the game somehow, I don't think
Speaker 1: they understand the game that we're playing. Um, because we're
Speaker 1: gonna have world class content. We have some of the
Speaker 1: best journalists and storytellers around, and we'll continue to invest
Speaker 1: in them. But we've spent the last few years, as
Speaker 1: as we discussed, you know the last time I was
Speaker 1: on the podcast, investing in the kind of product and
Speaker 1: technology and analytics and growth marketing capabilities that you need
Speaker 1: to be able to run a successful subscription business. This
Speaker 1: is really hard. But you know, the the Amazons and
Speaker 1: the Netflix is and the Googles and the Apples. You know,
Speaker 1: those companies weren't built in a day UH, and this
Speaker 1: product wasn't going to be a straight line to success.
Speaker 1: So I think we've been planting the seeds and we
Speaker 1: feel really good about the timing um about where we
Speaker 1: are now. So when you say it is not a
Speaker 1: straight line, does that mean there have been previous versions
Speaker 1: of what CNN plus UH is now, perhaps something that
Speaker 1: was just not really similar to what you're launching. But
Speaker 1: I don't know, say politics only vertical, or something that
Speaker 1: for whatever reason external circumstances internal politics didn't happen. Has
Speaker 1: there been stops and starts with different iterations of what
Speaker 1: you're doing. Now, there have been fits and starts, because
Speaker 1: I think that's that's the nature of innovation and product development.
Speaker 1: But I think each one has been a step along
Speaker 1: the path, you know. I think the notion is as
Speaker 1: we have invested over time and will continue to invest
Speaker 1: in UH in in content verticals that appealed to different audiences.
Speaker 1: It's all in the pursuit of really understanding what it
Speaker 1: takes to be able to speak directly to audiences, to
Speaker 1: cater them and to know them, which again is very
Speaker 1: different than working in typical ad supported news businesses. The
Speaker 1: notion of knowing customers and being able to super serve
Speaker 1: them around interest. So we made phrase into those areas
Speaker 1: and they've they've served this quite well. We've we've said
Speaker 1: over the years that we thought there was tremendous value
Speaker 1: in in some of our talent, the true expertise that
Speaker 1: we have, and so the research that we've done, in
Speaker 1: the efforts that we've made that's helped inform where we
Speaker 1: are now. We've had a number of different innovative efforts
Speaker 1: that have given us a chance to try new products,
Speaker 1: to to bring them to market, to serve different audiences,
Speaker 1: and that's taught us something along the way. Um So again,
Speaker 1: I I don't think we're living in a world and
Speaker 1: by the way, I don't think the media industry in
Speaker 1: general is living in a time where one day looks
Speaker 1: like the next. And so I would say that there
Speaker 1: have absolutely been fits and starts in our journey, but
Speaker 1: each one has helped us get to where we are today.
Speaker 1: You've said a number of times in this interview, there's
Speaker 1: nothing like this. But if I may in the broad strokes,
Speaker 1: is Fox Nation, Fox News his own uh streaming network
Speaker 1: really all that different than what you're describing. I mean,
Speaker 1: of course, ideologically it's completely different. But you know, they
Speaker 1: took Tucker Carlson and they sort of extended what he
Speaker 1: did on the streaming network. Maybe you'll do that with
Speaker 1: Jake Tapper Anderson or whatever. So is that an unfair comparison? Yeah?
Speaker 1: I mean, look, you know, ideology, propaganda, misinformation aside, right,
Speaker 1: A big, big aster has gone that one. Yeah, no, no, like,
Speaker 1: but but even put that aside, like, I understand why
Speaker 1: you know they're doing what they're doing, and because from
Speaker 1: a business perspective, they're trying to super serve a specific
Speaker 1: audience and I get that UM in the in the
Speaker 1: space that they're in. That that makes sense. But again
Speaker 1: going back to what CNN Plus is, it as three
Speaker 1: distinct components. So it has eight to twelve hours of
Speaker 1: live programming days, so original programming that will drop daily
Speaker 1: and weekly, some with our well known talent, some with others.
Speaker 1: Then it will have this really extensive on demand library,
Speaker 1: and we think that will be a differentiator. The third component, though,
Speaker 1: which is truly unique, is we're building a capability within
Speaker 1: the platform to allow our fans and followers to connect
Speaker 1: directly UM with our talent and with our experts. Because
Speaker 1: what we've found over the course of the last few
Speaker 1: years is we've researched this, our audiences are desperate to
Speaker 1: take part. They don't want to just be passive viewers,
Speaker 1: they want to be active participants. So, for example, last year,
Speaker 1: in the throes of COVID, we started doing a weekly
Speaker 1: broadcast town halls with Sanjay and with Anderson UM and
Speaker 1: questions poured in from viewers who wanted to take part.
Speaker 1: So that's helped inform the product development UM to be
Speaker 1: able to build the platform that we want and Again,
Speaker 1: we've been investing in the kinds of technologists and product
Speaker 1: leaders and marketing leaders that you need to grow a
Speaker 1: subscription service. We think that will really help differentiate us.
Speaker 1: And and look, the last thing I would say is
Speaker 1: again totally understanding the why Fox has taken the path
Speaker 1: that they have to serve that audience. This is a
Speaker 1: news platform, as I said, They're they're trying to serve
Speaker 1: as specific, specific niche audience, which which for them makes
Speaker 1: good business sense. We're trying to build a global news
Speaker 1: service and that's a little bit different. M hm. Well,
Speaker 1: the community aspect of this, this interactive aspect, sounds fascinating,
Speaker 1: also sounds technically difficult, are you guys. I mean it's
Speaker 1: it's hard enough, as HBO, Max and others have seen,
Speaker 1: just to keep the signal on for millions at a time.
Speaker 1: Then when you've got another signal going the other way,
Speaker 1: I mean I should ask is it complicated and how
Speaker 1: central is it really to the experience of what CNN
Speaker 1: Plus is. It's very essential to the experience. That's why
Speaker 1: the experience has three components. Um In terms of it
Speaker 1: being complicated, we're trying to build it as simply as
Speaker 1: we can because look, we know not everything will go right.
Speaker 1: You know, we're going to launch a product in the
Speaker 1: first quarter of next year, and some things won't go right.
Speaker 1: That's the way product development works. And again, it's it's
Speaker 1: interesting because it's so contrary to the way we have
Speaker 1: been taught in media. We've been taught in news to
Speaker 1: operate right where you know, you you launch a show,
Speaker 1: you launch a film, it's got to be perfect. That's
Speaker 1: not the way product development goes. It's inherently iterative, and
Speaker 1: so we expect things, uh. You know that we expect
Speaker 1: we will launch the product and our customers will tell
Speaker 1: us what they like and don't like, and so we're
Speaker 1: constantly going to be iterating. But what I'll tell you
Speaker 1: is we've had a team of engineers and developers uh
Speaker 1: and product managers working on this component of the service
Speaker 1: for a while and we think it's gonna be really
Speaker 1: important because we think, again, that's what customers want. And
Speaker 1: that's what I keep coming back to in this The
Speaker 1: success of this service will be predicated on whether we
Speaker 1: create something that is of such value that our customers
Speaker 1: want it from us. And we know that this is
Speaker 1: something that our customers want another technical question for you
Speaker 1: the app is see an N plus going to have
Speaker 1: its own app or is it part of the CNN app?
Speaker 1: How does that work? So it's a great question. You'll
Speaker 1: you'll be able to access CNN Plus through the CNN app.
Speaker 1: It's it's one app on mobile, also available on desktop,
Speaker 1: also available on connected TV devices, um, And so you'll
Speaker 1: be able to access Cnnplus through that experience. What I
Speaker 1: should also say is, if you're a current cable or
Speaker 1: broadband you know, pay TV subscriber and you're used to accessing,
Speaker 1: uh the the CNN linear streams with your authenticated password,
Speaker 1: you know, as you've done for several years, You'll still
Speaker 1: be able to do that within the CNN app. But
Speaker 1: the CNN Plus experience will be UM will be additive
Speaker 1: and available only to subscribers. Speaking of pay TV providers,
Speaker 1: I'm curious, you know, has there been any outreach to
Speaker 1: them in terms of clearing the fact that you're going
Speaker 1: to be doing this because I one, or how they're
Speaker 1: going to react if they're going to feel that you
Speaker 1: could end up cannibalizing what they're paying you good money
Speaker 1: to put on the air. Look, those those conversations are
Speaker 1: really important. Those relationships are really important, and at the
Speaker 1: heart of it is, you know, are linear television networks
Speaker 1: are really important And as I said before, we we
Speaker 1: are in the strongest position that we've ever been, and
Speaker 1: the commitment is for us to continue to invest in
Speaker 1: our linear networks, to continue to keep them strong and
Speaker 1: to keep them distinct. And that's again, it's really important
Speaker 1: for us because we think that's part of the advantage
Speaker 1: that we have here. We have a really strong and
Speaker 1: thriving linear business, we have a really strong digital business,
Speaker 1: and now we're going to have a really strong direct
Speaker 1: to consumer offering. And we think having those three symbiotic
Speaker 1: is really important because again, like we we are at
Speaker 1: a place right now in our evolution where we're entering
Speaker 1: this new space from a position of strength, and that's important. Um,
Speaker 1: it's when you have a thriving business, it's when you
Speaker 1: have a strong legacy, that's when you can really push it,
Speaker 1: that's when you can evolve the business. So, UM, we're
Speaker 1: really not worried about the impact because our commitment to
Speaker 1: our linear networks are as strong as they've ever been.
Speaker 1: But to put a finer point on this, do you
Speaker 1: have the blessing of pay TV providers to do CNN Plus.
Speaker 1: We're going to have the right conversations at the right
Speaker 1: time with all of our partners to ensure that the
Speaker 1: relationships that we have remain as strong as they've ever been.
Speaker 1: Look especially by the way as we launch CNN Plus,
Speaker 1: really strong partnership with our cable and provision will be
Speaker 1: beneficial to see ann Plus as well, and I think
Speaker 1: they will be beneficial um to our our distribution partners um.
Speaker 1: It's really important that we have the right conversations at
Speaker 1: the right times, um, because these products that we're gonna
Speaker 1: have can live, can live in real harmony, and they
Speaker 1: can serve audiences. They can serve our partners um in
Speaker 1: a really effective way. You know, I raised the prospect
Speaker 1: of cannibalization, which in success you could argue, you know,
Speaker 1: you will hurt CNN ratings, which, yes, you're coming off
Speaker 1: your most successful year, but one has been a year
Speaker 1: of decline for just about everybody in this business, coming
Speaker 1: off maybe the Trump bump. Uh So are you guys
Speaker 1: anticipating something like that? No, again, because the content is
Speaker 1: going to be so different, the experience is going to
Speaker 1: be so different, the value proposition will be so different
Speaker 1: that I'm not worried about cannibalization. I think if you
Speaker 1: are used to turning on CNN to watch CNN for
Speaker 1: specific reasons, you're going to continue to do that. And
Speaker 1: I think as you get introduced to CNN Plus and
Speaker 1: the original program that we have, whether it's faces the
Speaker 1: you're familiar with but in in unfamiliar ways, or whether
Speaker 1: it's a host of new talent and and new formats
Speaker 1: and new programming, I think you will find it to
Speaker 1: be a really distinctive experience. One last question, you've you've
Speaker 1: you've made your announcement today, these initial details. What other
Speaker 1: shoes should we expect to drop in the coming months.
Speaker 1: What are you looking to get out there before U
Speaker 1: the full launch finally happens. Well, look, I think over
Speaker 1: the course of the next few months, you can expect
Speaker 1: lots of exciting announcements about new talent. I think you
Speaker 1: can expect lots of announcements about new programming, m about partnerships.
Speaker 1: At some point we will be ready to start talking
Speaker 1: to customers about what the service will cost. Um As
Speaker 1: as we continue to UH, we continue to to focus
Speaker 1: on that. So um, we're incredibly excited about this UM today.
Speaker 1: And you know, I think you should expect a fairly
Speaker 1: regular drumbeat from us as we get closer to our
Speaker 1: launch UM with lots of different lots of different details.
Speaker 1: And for us, as I said earlier, I mean this
Speaker 1: is it's taking UH effort from people all across the company.
Speaker 1: It has the support and enthusiasm up and down the line. UM.
Speaker 1: You know this isn't if you think about where the
Speaker 1: the industry is right now, like it's not a time
Speaker 1: for half measures. You know, it's a time to take
Speaker 1: big swings and big bets. And so I think as
Speaker 1: you start hearing more about CNN Plus over the next
Speaker 1: few months, I think people will really start to get
Speaker 1: a sense of how big our ambitions are and how
Speaker 1: significant this service UH will be and frankly, UH the
Speaker 1: place that that we really hope it has in the
Speaker 1: lives of our consumers every day, because that's ultimately who
Speaker 1: we're here to serve. Well, nothing more exciting to watch
Speaker 1: than a big swing looking forward to CNN Plus and
Speaker 1: and everything that comes with it. Best of luck on
Speaker 1: this Andrew really appreciate Andrew, thanks for taking the time
Speaker 1: to chat. This has been another episode of Strictly Business.
Speaker 1: Tune in next week for another helping of scintillating conversation
Speaker 1: with media movers and shakers, and please make sure you
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