Can a new cable channel devoted to news be successful? The market is dominated by Ted Turner's Cable News Network (CNN), which gained notoriety during the Gulf War when it was learned that Saddam Hussein was getting some of his intelligence from the reporters on CNN. Since its initial shaky start, CNN has grown into a respected news organization with bureaus throughout the world and with a track record which has attracted the attention of larger and sometimes better known news organization. Other companies are now considering starting direct competitors to CNN; this research considers what issues a potential competitor should consider, and whether a network that was essentially "sports free" could pose a serious threat to CNN.
CNN poses a serious threat to any company considering entering the all-news market segment. Although the network has only been in business since 1980, it revolutionized television news coverage. Unlike network news, which devote a half hour of each evening's programming to national coverage (the remainder of the evening's news shows are local), CNN is a 24-hour news channel. Instead of just one or two shows each day dedicated to breaking news stories (ABC's Nightline focuses on a particular news story or issue), the entire network is dedicated to providing news throughout the day. In addition, the network spawned CNN Headline News, a second all-news network that features brief overviews of breaking news stories.
CNN put most of its efforts during its initial years into building a respected news organization. In late 1995, the network had 29 news bureaus and approximately 3,000 employees throughout the world who were responsible for gathering and processing news. In addition, the Gulf War helped to establish CNN's anchors as recognizable personalities, a distinction which has helped boost ratings for the network in the period since. This organization contrasts with the major networks (ABC, CBS and ...