Sunday, June 19, 2005
CNN Drops One Subscription Service, Readies Another
Source: Investor's Business Daily CNN is closing one online tollbooth while planning to open another.
The Cable News Network no longer charges users to watch taped video news reports on its CNN.com Web site. At the same time, the unit of Time Warner is getting ready to charge a new fee.
The company will launch an online subscription service later this summer that will include live video news reports and a video archive. "We think there is a consumer that's going to be interested in subscribing to a different kind of service," said Susan Grant, executive vice president of CNN News Services.
The move adds fodder to a debate over whether to charge for online video news. ABCNews.com charges consumers $4.95 a month for its service. Others, such as Fox News.com, don't require a fee.
CNN began charging for a video news subscription service in 2002. It had offered its news video online for free since 1995.
Consumers could pay CNN $4.95 a month for the video service. Or they could purchase it as part of a package of several video and audio services from CNN partners.
CNN dropped the fee because of changes in the Internet environment. For one, more users have broadband service. That makes it easier for them to watch video -- and provides a larger ad market. MORE
# posted by ATN @ 3:17 PM 
