Leadership Shake-up at CNN: Navigating Declining Ratings and the Future of News in the Streaming Era

June 07, 2023

Warner Bros. Discovery Inc. ($WBD) announced on Wednesday that Chris Licht is stepping down as CEO of CNN, marking the second leadership change at the network in just over two years. In the wake of this announcement, $WBD stock rose by over 7%. The company is set to conduct a comprehensive search for a new CEO, both internally and externally, during which executives Amy Entelis, Virginia Moseley, Eric Sherling, and David Leavy will take the reins at CNN.

Licht's departure followed a tumultuous tenure, marked by a precipitous drop in viewership, programming missteps, and internal strife among the network's staff. CNN's subscriber base declined from 85 million in 2020 to 70 million in 2023, accompanied by a 33% decrease in advertising revenue to $563 million. The network's prime-time audience also shrank, with a 26% drop in the key 25-to-54 demographic compared to the previous year, averaging 131,000 viewers.

During his tenure, Licht aimed to temper CNN's tone, advising anchors to remain objective and urging producers to use the "Breaking News" banner more sparingly. He also initiated changes to the morning and prime-time shows. Despite these efforts, Licht faced criticism for hosting a town hall with Donald Trump, an event that drew 3.3 million viewers but led to a further plunge in ratings.

Aside from tackling declining ratings and a shrinking cable TV audience, the new leader will face the task of restoring staff trust and deciding on the network's coverage approach for the upcoming 2024 presidential race. Moreover, with CNN's live programming currently not featured on Warner Bros. Discovery's rebranded streaming service, Max, due to potential contractual conflicts with cable-TV operators, the new CEO will also need to navigate the network's place in the streaming era.

Lastly, Licht's successor will have to address the network's unsuccessful foray into streaming. Last year, Licht closed CNN+'s streaming service, a platform designed for cord-cutters, just weeks after its launch, contributing to the challenges the new leader will face in a rapidly evolving media landscape.

William Lemanske