(Bloomberg) -- CNN is getting into the digital subscription business, part of an ambitious plan by the cable news channel to generate $1 billion a year in online revenue in the next five years.
The cable news network plans to charge for access to exclusive content and live events with some of its biggest stars, like Fareed Zakaria, said Matt Dornic, a CNN spokesman. The material would be in addition to what CNN already offers for free online.
Online publishers are focusing increasingly on getting their readers to pay for journalism as it becomes more difficult to survive on digital advertising -- a market dominated by two tech giants: Google and Facebook Inc.
CNN has been boosting its digital business as its traditional cable channel, like other networks, struggles with consumers who are dropping their pay-TV service. In June, the network said it will invest $40 million over the next two years in Great Big Story, transforming the in-house social video startup into a 24-hour streaming channel.
The price of the new subscription service hasn't been determined. The network plans to do market research early next year and launch the product by next summer. CNN is also considering an online version of its channel for people who don't pay for cable, though the service would only be available outside the U.S. to avoid running afoul of contracts with domestic pay-TV companies, Dornic said.
CNN's plans were first reported by the Wall Street Journal.
To contact the reporter on this story: Gerry Smith in New York at gsmith233@bloomberg.net.
To contact the editors responsible for this story: Crayton Harrison at tharrison5@bloomberg.net, Rob Golum
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