Welcome to another episode of Strictly Business, the podcast in which we talked with some of the brightest minds working in the media business today. I'm Andrew Wallenstein with Variety. This week we're bringing you a special bonus episode featuring an exclusive interview with Andrew Morse, chief Digital officer for CNN Worldwide. He's overseeing CNN Plus, the long awaited new streaming service the news brand plans to launch early next year.
That's just one of the key details CNN finally revealed today, but it leaves a host of questions we'll get into with our guest. It's all coming up on this episode of Strictly Business. Welcome back to another episode of Strictly Business, where we're joined today by Andrew Morse, the lead executive overseeing and CNN Plus. Thanks so much for doing the interview, Andrew. Thank you, Andrew, and it's it's nice to be here cool. So a quick recap for those who haven't heard what
your company announced today. CNN Plus is a video streaming service that will launch in the first quarter of two. Subscribers can expect eight to twelve hours of live content each day, featuring well known CNN talent as well as some new names. Catalog of CNN long form programming will be offered as well. This is obviously a huge undertaking, Andrew. So, I mean, is it safe to say this is like the biggest launch coming out of CNN since the rollout of the CNN website, which you oversee as well. I
think it's bigger than that. I think that this is the single biggest launch that CNN has had since Ted Turner launch the network in June of Um. This stakes are that high for us, The opportunity is that big, and we are that enthusiastic about this. And I would imagine the cost has got to be considerable here. Here you're gonna adding what hundreds of employees to support this, So you know, from a cost perspective, is this bigger
than anything you've you've spent on? Yeah? I think that's important. I mean, the magnitude of this is really significant. And again, if you think about it, I mean the question that you just asked was a great one. You know, CNN pioneered cable news in eight We really redefined or defined what digital news would look like when we launched CNN dot Com and those were both really significant launches um in order for us to make this next evolution. In order for us to take this next step, we we
can't take a half measure. We have to go all in. And this is a very substantial bet for us. So the investment that the company is making will be commensurate to the to the size of our ambition. A few key facts that we're missing from the announcement today, I obviously need to ask you about right off the bat, first being price. Uh have you guys come up with a price point yet? And is this an AD supported service? UM?
So it's not going to be AD supported um UM to start UM, we are launching this as a as a paid as FOD service. It won't be a vod UM in terms of price point. That is something that we are discussing quite a bit. We're doing quite a substantial amount of research and as we continue to refine the product and the go to market strategy over the course of the next few months. Uh, we will come
up with the right price point. And is there a reason And it sounds like you know, it's possible in the future you could add an AD supported component, but why not at the launch? You know, the first thing that we're focused on now is getting the product right for customers. You know, it's important to note that CNN Plus is going to be a standalone, direct to consumer paid subscription service, and so really what we're trying to do is unique. There isn't a service like this that
currently exists in the marketplace. And the difference with paid subscription services compared to add supported services UM or or most traditional media sources is that UM the customer really dictates UH to a certain degree, what the product is. And so for us, the first and most important thing is to build a product that customers will love, to
make sure that the content is extraordinary. And then once we get the product up and launched and in customers hands, we think that that having an advertising component UM will be an important part of the product as we go forward. Another key question, are you launching just in the US or is this a global product? It is a global product, and in fact, that's one of the real advantages that we have. You know, if you look at CNN, UH, you look at the advantages that we have, we're really
one of the world's only global news brands. I mean, really, outside of the BBC and CNN, you'd be hard pressed to to identify a real global news brand with a kind of reach and resources that we have. And so as we've looked at the market opportunity and we've looked at, um really who this product can reach and how big
it might be able to be. We think one of the distinct advantages is for Recipe Global that said at launch, it's going to launch in the US first, We're gonna get that market right, and then we will roll out internationally as we go. Got it. Um, You haven't revealed much yet about specific content, so, and I know there's a limit to what you could say, but a simple question, is this a twenty four hour news network? Uh? You know?
Do I do I need CNN if I have CNN Plus? Well, to answer your first question, is it a twenty for our news network? No? And the reason why is we have one and it's called CNN. And that's really important here is we have an incredibly successful, uh linear business. The CNN television network is stronger than it's ever been. It's coming off the best year in act in its history. And by the same token, we have the world's number one out supported digital news service and that's as strong
as it's ever been. CNN Plus is a totally separate, distinct, additive service and the content that we're creating UM will be unique and distinct from what you get on the US network. So that's really important. The the CNN television network will remain the CNN television network, and none of the core programming that that viewers CNR our television network, will be available on CNN Plus. We're gonna We're gonna
continue to invest in our television network. The kind of content that you'll see UM will be surprising, distinct, original, and provide provide users with a with a really different experience than what they currently get from our our television and digital properties. To me, the quintessential CNN is getting to the scene of a huge breaking story like like say the tragedy and at surfside in Miami. Would we see CNN plus function and anything like that. Yes, and no,
and and it's really important. And it's why cnmplus is so important because UM, again, there is nothing like CNN in terms of our global reach, the way we respond to stories, the way we deploy resources, and the way we promise our users immediate up to date news and information. And that's what CNM will continue to do in CNN Plus. It will still be really important to provide viewers of front row seat to what's happening, both the important and the interesting. Um. But we have to do it in
different ways. I think it gives us an opportunity to be more contextual, to spend more time with individual stories, to go deeper, to provide different angles, also provide different programming. So around the news, I think you'll provide you'll you'll you'll see a really distinct experience from what you'll get on the on the network. But it's also important to note that like we are not attempting to create a twenty four seven news wheel, that's not what CNN Plus
is going to be. The live programming will have a distinct personality beyond demand programming. Um again, well, well will serve a very different need and uh, this service will be quite different from what we do on the air. But will it's mere existence changed the complexion of what we understand CNN itself to be on TV? Because you know, I wonder you know again, let's go to my surf
side example. Maybe instead of going you know, six hours straight on the CNN airwaves on our five you're gonna say, you know what, we're going over to a different story, but if you want to continue the surf side experience, go to CNN Plus. Well, that kind of relationship of the network throwing to the streaming service happen. And yes, does it change CNN as we know it, No, it will. It won't change CNN as we know it. In fact, I think CNN Plus allows CNN to continue to be
CNN and to do with CNN does really well. I do think that this service will be complementary, and I do think there will be opportunities to push between the services for for more context and for more analysis, and for different kinds of programming. For complementary programming. UM, I think CNN will continue to do what it does best, which is to cover the most important stories of the day, the most interesting stories of the day, to be topical,
to be on the news, to be urgent. Uh. And again, CNN Plus will have a bit of a different personality CNN Plus will UH have. U will give us the opportunity to explore different topics that we don't always have a chance to cover on on the US network, really in in greater depth. UM. We certainly do cover topics like climate, like space, and science certainly like race and identity.
But the ability to spend much more time when you're not having to deal just to the linear schedule gives us the opportunity to explore those topics much more deeply. And also when you think about the daily programming we're going to do, we think there's an opportunity to go more in depth, to become more analytical. But but I think again it's it's also really important to note that what we are conceiving of a service that leans into the very best of what our DNA is, you're also
going to see things that surprise you. You're gonna see things across topics and across different formats, and you're gonna see different kinds of talent and personalities that you you simply wouldn't see on the US network that we think there's a real audience for in CNN Plus. So you've characterized CNN plus is having a different personality. Can you define it beyond saying it's surprising? Is it is it more irreverent? Is it less traditional? Is it is it
more ideological? I have to ask is it going to be something that you know well, you guys are known as the liberal network. And if you really want to go deep lib here CNN Plus. Well, I don't think anybody who is looking for deep lib would would seek out CNN. It's just not what we do. But no, it's not gonna be ideological. We're We're just not in that game. You know, We're we're not an opinion network. We're a news network. We're a news brand, So it
will have news DNA for sure. You know, We're not going to try to be reverend for being you know, for a reverend sake, because I don't think that's what audiences want. I think people turn to t N CNN for trust and for credibility, for authenticity. UM. I say, the personality we describe as smart and entertaining, and the two are not mutually exclusive. I think we can provide a level of depth and intelligence and context and perspective that you would associate with CNN, and we can also
we can also be entertaining. And I think there is room as you consider, um what CNN plus is, for us to be a little bit more expansive. Um. You know, as we think about you know, what is smart and what is entertaining? Well, does entertaining mean entertainment. Can I see a scripted comedy, Can I see a daily show type humor about the news? Again, I think you will see formats and topics, definitely the push the boundaries a little bit and and and I think that's okay. I
think that's what audiences. But I would also describe a lot of the programming that our original films and series groups have been doing for the last seven or eight years as entertaining. I would say Anthony Bourdain's Parts Unknown was entertaining. I think this Stanley Tucci searching for Italy
show is entertaining. And I think, you know, again, when you think about what audiences want and why they turn to CNN, UM, there's a host of really high quality, UM original nonfiction storytelling that can be really entertaining as well as you know, some of the provocative notions that you just reference. I think we're gonna have to try things.
We can't be afraid to take some chances on this platform. Yeah, um from you know, what has been reported is is that you know, CNN has turned to a lot of its key talent to get their buy in, and I guess have shows on CNN plus you see Anderson Cooper on TV and maybe you get to see him in his own show on CNN plus. What is the process been in terms of convincing talent to do this as it required a lot of contractual rearranging. Uh? Yeah, Like there is wild enthusiasm for this across CNN um um.
You know, as we have begun to to ramp up our plans and as we've had more conversations really across the n N from our talent, uh, to our producers, to our engineers and developers, to product managers, there is real enthusiasm for this product. And I think again you can expect the service to include you know, original programming, not not what you see from them on the US network, but from from Anderson Cooper, from Don Lemon or Jake
Tapper or Poppy Harlow, you know, from Van Jones. You know, I think I think you will see a different side of them. I think you will see a connection that that these folks have with their fans, um who have turned to them, you know, for their authenticity, for their authority,
and also because they're real human beings. You know, if you think about the connection that our audiences of forged asanga Gupta for example, over the course of the last year, UM, as we've lived through this global pandemic, UM people have really come to know our talent and as a result, our talent are really excited about this, and so we
think CNN Plus creates a great opportunity. I should say also though, like as I mentioned, the enthusiasm cuts across the whole company UM and that's important to note too, because we're having to really um you know, build the proverbial engine of the cars. We're driving it. And so we're in the process of hiring about four hundred and fifty people UM for CNN plus over the next six to nine months. I mean, it is a massive undertaking,
and that's across every discipline. So about half those roles are in the content spaces, you know, the production teams, and about half are in the engineering and product and technology and analytics and growth departments. I mean, this is a it's a big undertaking, and so our current employees are really excited and we're trying to build an all
star team as we go. So is this a team of four hundred and fifty or however many going to exist completely separately from CNN operations or is there some integration. Have you guys thought that through? Well, there there are two things. I mean, one is it is going to need its own staff. You can't build a product of this size with the kind of expectations that we have and not staff it properly. So it is going to
have its own separate leadership team. We hired Alex McCallum recently from The New York Times to be the general manager of CNN Plus. She's our head of product and she helped the Times build their successful subscription businesses. We've brought on Rebecca Cutler, who has had just about every job throughout our CNN programming for a while, to lead our programming and production UM. But we're also and and so they're building independent staffs. But we're also getting help
from all over the organizations. So the Original Series and Films group that's produced The Bourdain's and the Two Geese and films like RBG, they're leaning in and their help being developed scores of new series for us. So we're building out that department as well. So yes, it will
have a separate and discrete staff. But this is such an important effort um, so that you know, again the films in series group led by Amy and tell Us will be a big part of it, and every part of CNN frankly, from HR to legal, to finance, to our TV teams to our core digital teams. UM. For this to be successful, UM, we've got to have the support from everybody in the organization. And the good news
is everybody's really enthusiastic about it. I'm also curious about the enthusiasm at the A T and T level or really the the the level of involvement. UM. For instance, Jason Kyler, CEO Warner Media, has he been involved in this process? How how into this is a T and T? Well, there are a couple of things to stand that. I mean, we've been on this journey for a while now. So for the last few years, UH, CNN has been putting the pieces together and laying the groundwork for a director
consumer future. And Jeff Zooker, you know, the president of CNN Worldwide and chairman of Warner Media News and Sports. Jeff has been UM as as as much of a proponent of of this journey as anyone, and as Jason came into the company about a year ago. UM, given his background, UM, given the work he did at Hulu given his mandate for for pushing Warner Media boldly into a director consumer future. Jason has been incredibly supportive of the path that we're on, and it's been a real
team effort up and down the line. And you mentioned A T and T. They are really vested in the success of this, uh, this product as well. In fact, John Stanky made comments fairly recently talking about how enthusiastic he was to John's of course, the the A T and T CEO. Um. So it has been a great partnership and there is real support for CNN plus up
and down the line. But that begs a few questions, the first being why you could argue, and maybe you'll argue against me, that CNN didn't necessarily need to launch its own branded, standalone thing. It could have been embedded in HBO Max, it could have been a tab of some sort. Uh, why not consolidate efforts? So what walk me through the rationale of not doing that? Was it
even discussed? Well? Sure, I mean it makes sense as a consideration when you have a brand like CNN that is truly distinct and unique, and again you think about the opportunities, there isn't another news organization on the planet that could pull off what we're trying to pull off if you practically look at the advantages that we have were global. We reached two million people across digital and linear platforms every month UM. We have a rich history
and tradition and video. We have a rich archive and library of nonfiction content, and we have the product and technology chops to be able to build a world class platform and and and there isn't another organization that can do that. And so I think the way we're looking at it is we have a tremendous entertainment subscription service in HBO max UM that is growing and thriving, and that is drawing new customers every day, and that allows HBO max to do what it does best and to
reach their customers with a very clear value proposition. And of alongside that, the company can also have an unparalleled global news and information service. You've got a really powerful set of products that the company can roll out. If we were a different news organization, you might go a different path because you know, other news organizations frankly just don't have the resources that we do that you need to be able to build a standalone subscription service if
you're just joining us. We're talking with Andrew Morse. He is the chief Digital officer of CNN Worldwide, and we'll be back with him in a minute. We're back with Andrew Morrise, the chief Digital officer of CNN Worldwide, who's tight taking us through CNN Plus. I mean, another thing I was wondering about is, of course, there's this pending
merger next year between A T and T and Discovery. UH. You could argue that there's overlap between Discoveries prowess and unscripted content and a lot of the your catalog, which is long form unscripted. So is that a consideration in this in terms of you're launching before that merger is going to happen, But in the event that it does, I would imagine the existence of Discovery could really change things. You know. I can't really comment on on that at all.
What I can say is we're on the track that we're on and we're building this service, um, you know, and we'll have to wait and see, you know, what happens with the merger. But right now we're just focused on building the platform, UH and working with Warner Media and A T and T to do that. You know, you referenced that what you're launching has been in the works for a while, and you actually came on this podcast nearly two years ago and we talked about the
prospect of some kind of direct to consumer play. So let's you know, the flip side is what took so long? Why? You know, why has it taken so long to do something like this? Well, because nothing like this has been done, and the path to success here just it's not a straight line, especially when you're trying something with this degree of ambition. If if it were easy, somebody would have
would have done this. You know. The fact is there are three news and information services right now with over a million paid digital subscribers, The New York Times, the Washington Post, in the Wall Street Journal, and all three of them, by the way, I had pretty thriving direct to consumer businesses subscription businesses before they made their pivot to digital. UM. There isn't a service like CNN Plus.
And the reality is, especially when you're talking about product development, and that's what we're talking about here, it's not just about taking content and throwing it at the wall. Um. And and that's the thing I think people who would suggest or relate to the game somehow, I don't think they understand the game that we're playing. Um, because we're gonna have world class content. We have some of the best journalists and storytellers around, and we'll continue to invest
in them. But we've spent the last few years, as as we discussed, you know the last time I was on the podcast, investing in the kind of product and technology and analytics and growth marketing capabilities that you need to be able to run a successful subscription business. This is really hard. But you know, the the Amazons and the Netflix is and the Googles and the Apples. You know, those companies weren't built in a day UH, and this product wasn't going to be a straight line to success.
So I think we've been planting the seeds and we feel really good about the timing um about where we are now. So when you say it is not a straight line, does that mean there have been previous versions of what CNN plus UH is now, perhaps something that was just not really similar to what you're launching. But I don't know, say politics only vertical, or something that
for whatever reason external circumstances internal politics didn't happen. Has there been stops and starts with different iterations of what you're doing. Now, there have been fits and starts, because I think that's that's the nature of innovation and product development. But I think each one has been a step along the path, you know. I think the notion is as we have invested over time and will continue to invest in UH in in content verticals that appealed to different audiences.
It's all in the pursuit of really understanding what it takes to be able to speak directly to audiences, to cater them and to know them, which again is very different than working in typical ad supported news businesses. The notion of knowing customers and being able to super serve them around interest. So we made phrase into those areas
and they've they've served this quite well. We've we've said over the years that we thought there was tremendous value in in some of our talent, the true expertise that we have, and so the research that we've done, in the efforts that we've made that's helped inform where we are now. We've had a number of different innovative efforts that have given us a chance to try new products, to to bring them to market, to serve different audiences,
and that's taught us something along the way. Um So again, I I don't think we're living in a world and by the way, I don't think the media industry in general is living in a time where one day looks like the next. And so I would say that there have absolutely been fits and starts in our journey, but each one has helped us get to where we are today. You've said a number of times in this interview, there's
nothing like this. But if I may in the broad strokes, is Fox Nation, Fox News his own uh streaming network really all that different than what you're describing. I mean, of course, ideologically it's completely different. But you know, they took Tucker Carlson and they sort of extended what he did on the streaming network. Maybe you'll do that with Jake Tapper Anderson or whatever. So is that an unfair comparison? Yeah? I mean, look, you know, ideology, propaganda, misinformation aside, right,
A big, big aster has gone that one. Yeah, no, no, like, but but even put that aside, like, I understand why you know they're doing what they're doing, and because from a business perspective, they're trying to super serve a specific audience and I get that UM in the in the space that they're in. That that makes sense. But again going back to what CNN Plus is, it as three
distinct components. So it has eight to twelve hours of live programming days, so original programming that will drop daily and weekly, some with our well known talent, some with others. Then it will have this really extensive on demand library, and we think that will be a differentiator. The third component, though, which is truly unique, is we're building a capability within the platform to allow our fans and followers to connect
directly UM with our talent and with our experts. Because what we've found over the course of the last few years is we've researched this, our audiences are desperate to take part. They don't want to just be passive viewers, they want to be active participants. So, for example, last year, in the throes of COVID, we started doing a weekly broadcast town halls with Sanjay and with Anderson UM and questions poured in from viewers who wanted to take part.
So that's helped inform the product development UM to be able to build the platform that we want and Again, we've been investing in the kinds of technologists and product leaders and marketing leaders that you need to grow a subscription service. We think that will really help differentiate us. And and look, the last thing I would say is again totally understanding the why Fox has taken the path
that they have to serve that audience. This is a news platform, as I said, They're they're trying to serve as specific, specific niche audience, which which for them makes good business sense. We're trying to build a global news service and that's a little bit different. M hm. Well, the community aspect of this, this interactive aspect, sounds fascinating,
also sounds technically difficult, are you guys. I mean it's it's hard enough, as HBO, Max and others have seen, just to keep the signal on for millions at a time. Then when you've got another signal going the other way, I mean I should ask is it complicated and how central is it really to the experience of what CNN Plus is. It's very essential to the experience. That's why
the experience has three components. Um In terms of it being complicated, we're trying to build it as simply as we can because look, we know not everything will go right. You know, we're going to launch a product in the first quarter of next year, and some things won't go right. That's the way product development works. And again, it's it's interesting because it's so contrary to the way we have
been taught in media. We've been taught in news to operate right where you know, you you launch a show, you launch a film, it's got to be perfect. That's not the way product development goes. It's inherently iterative, and so we expect things, uh. You know that we expect we will launch the product and our customers will tell us what they like and don't like, and so we're
constantly going to be iterating. But what I'll tell you is we've had a team of engineers and developers uh and product managers working on this component of the service for a while and we think it's gonna be really important because we think, again, that's what customers want. And that's what I keep coming back to in this The success of this service will be predicated on whether we create something that is of such value that our customers
want it from us. And we know that this is something that our customers want another technical question for you the app is see an N plus going to have its own app or is it part of the CNN app? How does that work? So it's a great question. You'll you'll be able to access CNN Plus through the CNN app. It's it's one app on mobile, also available on desktop, also available on connected TV devices, um, And so you'll
be able to access Cnnplus through that experience. What I should also say is, if you're a current cable or broadband you know, pay TV subscriber and you're used to accessing, uh the the CNN linear streams with your authenticated password, you know, as you've done for several years, You'll still be able to do that within the CNN app. But the CNN Plus experience will be UM will be additive
and available only to subscribers. Speaking of pay TV providers, I'm curious, you know, has there been any outreach to them in terms of clearing the fact that you're going to be doing this because I one, or how they're going to react if they're going to feel that you could end up cannibalizing what they're paying you good money to put on the air. Look, those those conversations are
really important. Those relationships are really important, and at the heart of it is, you know, are linear television networks are really important And as I said before, we we are in the strongest position that we've ever been, and the commitment is for us to continue to invest in our linear networks, to continue to keep them strong and to keep them distinct. And that's again, it's really important for us because we think that's part of the advantage
that we have here. We have a really strong and thriving linear business, we have a really strong digital business, and now we're going to have a really strong direct to consumer offering. And we think having those three symbiotic is really important because again, like we we are at a place right now in our evolution where we're entering
this new space from a position of strength, and that's important. Um, it's when you have a thriving business, it's when you have a strong legacy, that's when you can really push it, that's when you can evolve the business. So, UM, we're really not worried about the impact because our commitment to our linear networks are as strong as they've ever been. But to put a finer point on this, do you have the blessing of pay TV providers to do CNN Plus.
We're going to have the right conversations at the right time with all of our partners to ensure that the relationships that we have remain as strong as they've ever been. Look especially by the way as we launch CNN Plus, really strong partnership with our cable and provision will be beneficial to see ann Plus as well, and I think they will be beneficial um to our our distribution partners um.
It's really important that we have the right conversations at the right times, um, because these products that we're gonna have can live, can live in real harmony, and they can serve audiences. They can serve our partners um in
a really effective way. You know, I raised the prospect of cannibalization, which in success you could argue, you know, you will hurt CNN ratings, which, yes, you're coming off your most successful year, but one has been a year of decline for just about everybody in this business, coming off maybe the Trump bump. Uh So are you guys
anticipating something like that? No, again, because the content is going to be so different, the experience is going to be so different, the value proposition will be so different that I'm not worried about cannibalization. I think if you are used to turning on CNN to watch CNN for
specific reasons, you're going to continue to do that. And I think as you get introduced to CNN Plus and the original program that we have, whether it's faces the you're familiar with but in in unfamiliar ways, or whether it's a host of new talent and and new formats and new programming, I think you will find it to be a really distinctive experience. One last question, you've you've
you've made your announcement today, these initial details. What other shoes should we expect to drop in the coming months. What are you looking to get out there before U the full launch finally happens. Well, look, I think over the course of the next few months, you can expect lots of exciting announcements about new talent. I think you can expect lots of announcements about new programming, m about partnerships. At some point we will be ready to start talking
to customers about what the service will cost. Um As as we continue to UH, we continue to to focus on that. So um, we're incredibly excited about this UM today. And you know, I think you should expect a fairly regular drumbeat from us as we get closer to our launch UM with lots of different lots of different details. And for us, as I said earlier, I mean this is it's taking UH effort from people all across the company.
It has the support and enthusiasm up and down the line. UM. You know this isn't if you think about where the the industry is right now, like it's not a time for half measures. You know, it's a time to take
big swings and big bets. And so I think as you start hearing more about CNN Plus over the next few months, I think people will really start to get a sense of how big our ambitions are and how significant this service UH will be and frankly, UH the place that that we really hope it has in the lives of our consumers every day, because that's ultimately who we're here to serve. Well, nothing more exciting to watch than a big swing looking forward to CNN Plus and
and everything that comes with it. Best of luck on this Andrew really appreciate Andrew, thanks for taking the time to chat. This has been another episode of Strictly Business. Tune in next week for another helping of scintillating conversation with media movers and shakers, and please make sure you subscribe to the podcast to hear future episodes. Also, leave a review in Apple Podcasts and let us know how we're doing