The
Cable News Network (CNN) ranks as one of the most important, indeed
perhaps the most important, innovation in cable television during
the final quarter of the 20th century. In 1984 CNN first began to
earn wide-spread recognition and praise for its nearly around the
clock coverage of the Democratic and Republican conventions. By
1990 Ted Turner's 24 hour-a-day creation had become the major source
for breaking news. Praise became so routine that few were surprised
when a mid-1990s Roper survey found viewers ranked CNN as the "most
fair" among all TV outlets, and the Times Mirror's Center for The
People & The Press found viewers trusted CNN more than any television
news organization.
But
success did not come overnight. Launched in June 1980 by the then
tiny Turner Broadcasting of Atlanta, in the beginning CNN (mocked
as the "Chicken Noodle Network") accumulated losses at the rate
of $2 million a month. Ted Turner transferred earnings from his
highly profitable superstation to slowly build a first rate news
organization. CNN set up bureaus across the United States, and then
around the world, beginning with Rome and London. Yet at first Turner
and his executives were never sure they would even survive the stiff
competition from rival Satellite NewsChannel, a joint venture of
Group W Westinghouse and ABC. In January 1982 Turner let Satellite
News Channels know he was serious and initiated a second CNN service,
"Headline News." Through 1982 and most of 1983 CNN battled SNC.
In October 1983 ABC and Westinghouse gave up and sold their news
venture to Turner for $25 million, ending effective competition
for CNN in the United States.
CNN
then took off. By 1985 it was reaching in excess of 30 million homes
in the United States and had claimed its first profit. Turner added
bureaus in Bonn, Moscow, Cairo and Tel Aviv, and in the years before
Court TV alone televised celebrated trials such as the Claus von
Bulow murder case. In 1987 when President Ronald Reagan met Mikhail
S. Gorbachev at a summit that would signal the end of the Cold War,
CNN was on the air continuously with some seventeen correspondents
on site. By 1989 CNN had 1600 employees, an annual budget was about
$150 million, and was available in 65 countries with such specialized
segments such as a daily entertainment report, Show Biz Today,
and a nightly evening newscast, The World Today. Larry King
had moved his interview show to CNN and become famous for attracting
ambitious politicians and infamous celebrities. In 1991, as the
only TV network in the world operating live from the very beginning
of Operation Desert Storm, CNN reported everything the military
permitted--from the first bombing of Baghdad to the tank blitz that
ended the conflict. Indeed at a press conference after the initial
air bombing runs by the U.S. Air Force, Defense Secretary Richard
B. Cheney and General Colin L. Powell, Chairman of the Joint Chiefs
of Staff, admitted that they were getting much of their war information
from CNN.
But
the fame of CNN's Gulf War coverage did not turn into corporate
fortune because the costs of coverage of a wide ranging set of battles
had risen faster than advertising revenues. Indeed the crest came
on the night of the invasion of Kuwait by Iraq when CNN captured
11% of the audience as compared to the usual 1 or 2% normal audience
shares. Advertising time had already been sold. Still as the late
1980s and early 1990s provided regular disasters, wars, and "media
events," CNN was able to experience surges in interest and thus
take in ratings binges around the fascination peaked by the confrontations
at Tiananmen Square, the calamities of the San Francisco earthquake,
and the long awaited announcement of the verdict in O. J. Simpson's
"trial of the century."
Whatever
the news mix, CNN's prestige never stopped rising. It became a basic
component of how the new global village communicated. So when United
States troops invaded Panama in 1989, the Soviet foreign ministry's
first call did not go to its counterpart in the United States diplomatic
corps, but to the Moscow bureau of CNN--a statement could be read
on camera condemning the action. Ted Turner proudly told anyone
who would listen that Margaret Thatcher, Francois Mitterrand, Nancy
Reagan, and Fidel Castro all had declared themselves faithful viewers
of CNN. But as CNN moved well past 50 million households reached
in the United States (and millions more abroad), all was not calm
inside the organization. Staffers began to grumble about low wages
and pressure not to unionize. And by the early 1990s Ted Turner
seemed to lose his innovative magic. In 1992 he heralded and launched
an "Airport Channel," and a "Supermarket Channel," but neither added
much in the way of new audience or profits. And as CNN reached over
more and more of the world, indigenous local news organizations
began to publicly label Ted Turner a "cultural imperialist."
Yet
there was no doubt that as CNN turned fifteen in June 1995 it had
surely become a prosperous and important part of the new world of
cable television. Yearly revenues neared one billion dollars, but
growth stalled as advertisers realized that the CNN audience was
"too old" and "not as affluent" as could be found elsewhere. The
year 1995 was most eventful. First Ted Turner sold his complete
operation, including CNN, to mega-media giant Time Warner and skeptics
grumbled that a serious news organization would have difficulty
trying to function as part of such a corporate colossus. At the
end of the year Microsoft announced it would ally with NBC to form
MSNBC to directly challenge CNN. Rupert Murdoch's News Corps., Inc.,
and Capital Cities/ABC also promised future 24-hour news services
to contest CNN around the world. Whatever the future held by the
mid-1990s CNN had become the stuff of legend. Ted Turner had forever
changed the history of television news with his innovation of CNN.
-Douglas
Gomery
Bibb,
Porter. It Ain't as Easy as It Looks: Ted Turner's Amazing Story.
New York: Crown, 1993.
Picard,
Robert G., Editor. The Cable Networks Handbook. Riverside,
California: Carpelan, 1993.
Whittemore,
Hank. CNN: The Inside Story. Boston: Little Brown, 1990.