CNN Bows Paid iPhone App for Live Video News Feed

CNN on Tuesday (Sept. 29) will launch the CNN iPhone App—which could potentially bring live news footage to millions of mobile devices—for a small fee.

The new app is now available within Apple’s App Store for $1.99, making it one of the few application launched by a traditional media company that carries a dual revenue stream (for example,’s app, launched in June, is free). CNN has signed on Lexus and Chevron as its launch sponsors.

But unlike many free news application, CNN’s app will stream live video via the Web-based Live service, providing iPhone and iTouch users an in-your-pocket means to stay connected to what’s happening in the world, particularly during breaking news events.

In addition, CNN executives are touting the app’s customization features, and its built-specifically-for-the-iPhone design. For example, users can personalize the app to focus on favorite topics or local news. And the app’s headlines will be unique to the iPhone rather than repurposed from the Web.

“We’re starting to get to a place where we have mobile-only editorial,” said KC Estenson, general manager and senior vp of “That’s part of what we think is the value we bring. It’s truly customized, and the experience is more immersive. There is a level of personalization and customization [with this app] you can’t even get on”

Beyond customization features, CNN has also weaved social media into its new app, as users will be able to share content with their Facebook and Twitter circles with a few simple finger taps. They can also elect to clip and save stories for later consumption, even when they’re in areas with no cell phone service–such as on airplanes or subways.

But are those offerings enough to get people to pay for mobile news content, when iPhone users can so easily surf the Web, including  Estenson said that the low price point, coupled with the comfort so many iPhone owners already have with purchasing items in the App store, should make paying more palatable. “If you put out a great product into the market, people will pay for it,” he said. “The barrier is much lower…and  iPhone is a trusted provider.”

Estenson said he doubted that would start charging for access to content on the Web. But the iPhone is a special case. “It’s not like we’re blocking your access [to]. You’ll still be able to access CNN 100 different ways. This is a premium product.”

On the advertising front, Estenson said the goal was to have the ad experience live up to the app’s clean content and slick design. For example, the banners will appear within a series of articles that a user might flip through via the app, rather than at the top of a mobile Web page. Similarly, for video, display ads are delivered briefly as videos download, rather than pre-roll ads.

Plus, when users click on ads, they don’t need to launch a Web browser and leave the app. “All of the issues that bug us about mobile advertising, we tried to eliminate,” said Estenson