The Bankwatch

Tracking the consumer evolution of financial services

Is CNN an early indicator of new business measurement

I happen to be a CNN fan, but that is immaterial.  CNN has the interesting dichotomy of financial success and ratings failure.  That is interesting because maybe the problem lies in the measurement.  All companies whether news or banks are going through a shift, and the old way of thinking about it will not work in the new times. 

CNN bolsters profits even as ratings slump |

CNN has received a drubbing from rivals on both sides of the political spectrum –News Corp’s right-leaning Fox News Channel and NBC Universal’s liberal MSNBC network.

“CNN really has to come up with a formula that will resonate with viewers and attract advertising dollars. News is ubiquitous,” said Brad Adgate, senior vice-president of research at Horizon Media, an independent media agency.

As CNN disposes of Campbell Brown, and before that Paula Zahn I wonder if they are aiming for the right target. The business ecosystem is different now, and maybe, just maybe CNN have some secrets that are the right approach.  Certainly their global reach is different and better than their competitors.  When I travel CNN and BBC are ‘the’ news sources.  CNN’s online properties are lucrative beyond their competitors. 

Relevance to Bankwatch:

When Banks compare themselves to competition are you using old metrics (market share, share of deposits share of mortgages, etc) or new metrics (in CNN situation profit). 

It just strikes me that CNN could possibly me an early indicator of a new shift in industrial measurement success.

Written by Colin Henderson

July 3, 2010 at 23:32

Posted in Uncategorized

2 Responses

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  1. Colin: No offense, but I think your being a CNN “fan” is material, here.

    CNN’s profits have been able to rise in the face of ratings decline, because the decline is predominantly US-based, and — if I have my facts straight — just 10% of their revenue comes from the US prime time market.

    The paradox of CNN’s “success” has little to do with measurement problems. As a news organization, CNN is increasingly irrelevant in the US landscape. And it’s 9PM ET entry — Larry King — is so past his prime, that it’s sad.

    Ron Shevlin

    July 5, 2010 at 14:38

  2. @Ron.. thats interesting and my prejudice is probably showing. I accept but am surprised about the increasing irrelevance in the US and your points are well taken.

    Colin Henderson

    July 6, 2010 at 17:46

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