(Headline USA) CNN’s profits are the lowest they’ve been in years as the network continues to lose viewers and struggles to earn high ratings.
A report from the New York Times revealed CNN shed nearly 27% of its viewers this quarter compared to last year, and could see its annual profits drop below $1 billion for the first time since 2016 as a result. The network’s profits are on pace to tumble to $956.8 million this year.
The news comes just three months after CEO Chris Licht took the reins of the company, and only a couple of months after CNN was forced to shut down its failed streaming service, CNN+.
Licht reportedly has been trying to steer the network away from “sensational” reporting, telling employees during his first week that he doesn’t want “producers making decisions based on what they think will rate.”
But this strategy appears to be bad for business, because Licht is now scrambling to find ways to increase CNN’s revenue. Some of the ideas he’s pitched include advertising deals with major tech firms, sponsorships and expanded operations in China, according to the Times.
CNN has also been forced to tamp down on expenses, placing caps on travel and internal festivities to cut costs.
The network could face another significant expense if former President Donald Trump decides to sue CNN for defamation, which he said last month he plans to do.
“I have notified CNN of my intent to file a lawsuit over their repeated defamatory statements against me,” Trump said in a statement in July.
“I will also be commencing actions against other media outlets who have defamed me and defrauded the public regarding the overwhelming evidence of fraud throughout the 2020 Election.”
A letter sent to CNN by Trump’s legal team cites the network’s constant reference to “the Big Lie,” which is how it chose to describe Trump’s concerns about vote fraud.
“In this instance, President Trump’s comments are not lies: He subjectively believes that the results of the 2020 presidential election turned on fraudulent voting activity in several key states,” the notice stated.
