CNN has started to ask some of its readers to pay $3.99 per month to read its stories.

CNN reported it was starting the process to create a paywall that should help cover its bills to do journalism around the world over time.

“Starting today, we are asking users in the United States to pay a small recurring fee for unlimited access to CNN.com’s world-class articles,” said CNN Executive Vice President of Digital Products and Services Alex MacCallum to CNN.

For the average readers to CNN’s website who read a few stories per month, they will not be prompted to pay at this time.

“Only after users consume a certain number of free articles will they be prompted to subscribe,” said MacCallum.

“In addition to unlimited access to CNN.com’s articles, subscribers will receive benefits like exclusive election features, original documentaries, a curated daily selection of our most distinctive journalism, and fewer digital ads.”

MacCallum and CNN Chair and CEO Mark Thompson used to work at the New York Times, which is envied in the news industry for setting up a successful paywall that has led to multiple people subscribing to it.

Thompson said in a memo from the summer CNN would “create best-in-class, subscription-ready products that will provide need-to-know news, analysis and context in compelling new formats and experiences, starting with CNN.com’s first subscription product launching before the end of 2024.”

The paywall began to roll out on Tuesday in a preliminary model that will expand in the coming months.

“Over time, we will invest in ways to better meet our users’ needs and expand our aperture to engage and serve new audiences,” said MacCallum.

While brands such as CNN make most of their money from cable television, the issue they face is creating new digital revenue streams to manage declining earnings from traditional TV.

To try to experiment with video streaming, CNN rolled out CNN+ in 2022, creating direct-to-consumer relationships with its fans. However, CNN+ was cancelled after a few weeks when new management took over.

Under this new plan, it will generate subscriptions with its main offerings. Content such as the homepage, breaking news live stories, standalone video pages, and sponsored stories will be accessible without subscriptions.

Thomson Reuters confirmed on Tuesday it was launching a paywall for its website and app in early October. Right now, Reuters said subscriptions will be available for a $1 weekly fee worldwide.

“This new subscription plan ensures Reuters can expand the reach of its award-winning coverage at an affordable price, while allowing us to further invest in our reporting and products for subscribers,” said Reuters President Paul Bascobert.

Although digital subscriptions have been touted as a solution to journalism’s problems, they have proven to be a promising, challenging business model. A survey conducted by the Reuters Institute for the Study of Journalism at the University of Oxford found one-fifth of Americans are paying for online news.

International News Media Association researcher-in-residence Greg Piechota said there is plenty of room for the news industry to grow.

“There is no subscription ceiling for online news,” said Piechota to CNN.

“Imagine that you are standing in front of the One World Trade skyscraper in downtown New York and looking up to the top observation deck.”

Piechota said most news outlets “have reached only the first floor, and the 100th floor is far away up in the clouds.”

At the moment, he said the New York Times is the highest by far, having 10 million digital subscribers.

Smaller news outlets have struggled to build up subscription bases, as almost all stories were published for free when the internet was popularized in the 1990s.

In the last decade, small and large news outlets have tried to change the norms about news access. Meanwhile, many people fail to understand paying for news helps to sustain the industry.

“Unfortunately, based on surveys, most consumers across the world are not aware of the financial challenges faced by the commercial news media,” said Piechota.

“But when they hear about the industry’s critical financial situation, their willingness to pay for journalism is the highest, studies showed.”

This ordeal comes after rumors circulated in 2023 that CNN could be under new ownership within one year, with former CEO Jeff Zucker being a possible suitor.

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