Decision 2016 has been very, very good to the TV networks, especially those in the 24/7 news business.
The Washington Post reports CNN is poised to hit a record $1 billion in profit this year. That report comes a few days after NPR reported the channel is seeing an extra $100 million in revenue over a typical election year.
According to people intimately familiar with CNN’s finances, the network and its related media businesses will approach $1 billion in gross profit in 2016. The internal estimate reflects a double-digit increase over 2015; it includes CNN’s international network, its popular website and the smaller HLN network, but is driven primarily by its domestic channel, according to people at CNN.
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CNN’s revenue has topped $1 billion for several years, but this is the first time in its 36 years it could see $1 billion in profit. CNN’s hiring spree spree over the last year has sent costs up, but seems to have added to the bottom line.
Leading cable news network Fox News has been in the billion dollar profit club for several years. SNL Kagan projects FNC will see $2.6 billion in revenue with profit exceeding $1.6 billion. The Post reports:
Third-ranked MSNBC, which falls under the larger NBC News umbrella, will have projected earnings of $279.6 million this year, according to Kagan. MSNBC is growing faster in percentage terms than its two much-larger competitors; its projected profits reflect a 19 percent growth rate over 2015, compared with 14 percent for CNN and 11.3 percent for Fox, according to Kagan.
Earlier this week, CNN reached another milestone. For the first time in 15 years the network won 4 weeks straight in the advertiser-friendly A25-54 demo.