September 26, 2024 at 9:15 am

CNN will launch a paid paywall for online readers early next month, part of a broader plan by Chairman/CEO Mark Thompson to restructure the news giant into profitability.

The plan was first reported by The New York Times on Thursday. A CNN spokesman declined to comment.

The paid paywall requires heavy users to pay for access after clicking on a set number of articles. The model is common at major news outlets, including the New York Times and the New Yorker.

CNN first hinted at the plan in July when it announced it would launch a digital subscription service as part of a restructuring that included laying off about 100 employees. Details were not disclosed, but sources who spoke to the Times said CNN will start with a low-cost option.

Thompson, who took the leadership role nearly a year ago, announced earlier this summer that the network would explore a paywall as part of a broader strategy to create monetizable content. Thompson has experience leading a successful digital subscription strategy from his time at The New York Times.

The newspaper also reports that CNN hired executives – including Alex MacCallum, who ran digital products for the Times – to lead the move to paywalls.

The subscription model had a test run two years ago when the broadcaster launched the streaming service CNN+ with exclusive content. The service was canceled when Warner Bros. Discovery, CNN's newly merged parent company, decided it was too costly.

The new subscription model will not include extensive new programming, sources told the Times.