From the network's start as the first 24/7 news operation, to being the first to break the news on September 11 – CNN has always had the idea of not only “the most trusted source in the news” but the first one as well.The idea of firstness lies in the basis of CNN.com’s business model and translates to its value component as the most desired part of the value proposition for customers. To be the first on the market means establishing itself before other companies get to the same piece of the audience pie (which also means the ad revenue pie).
CNN.com was the first major news and information Web site. It was the first among major news organization to launch a completely user-driven application “CNN Exchange.” It was the first to offer a unique subscription-based and ad-free video product – CNN Pipeline.
Even in instances when launching a new product may face some resistance from consumers, CNN.com still followed the firstness model. Exchange was a risly enterprise, but CNN.com made sure it is as good as its own reporting product by putting people-reporters through the same process of vetting and approval as it does its own correspondents.
Then there was podcasting -- to add value to the existing CNN Radio product and to promote this product better across online channels of distribution. However, the public understanding of “podcasting” is still forming. When asked to define podcasting, a majority of Americans mention “file transfer,” “downloading,” “iPods,” “radio and/or television programming” most often. There seems to be some confusion about the differences among podcasting, Internet broadcasting and downloadable music.
Innovation and novelty, introduction of new products and marketing techniques; new methods of production and distribution have always been traditional ways of value creation. E-businesses also have an advantage of new distribution techniques in a new medium. E-bay moved forward in the marketplace after it introduced a new method of conducting transactions: consumer-to-consumer auction buying.
CNN.com is revolutionizing the media landscape by introducing and embracing around-the-clock and all-media approach to distributing news: from cable to radio to broadband to mobile to online. Regardless of where consumer is located physically, there’s always access to CNN.com. When consumers are not on the Web site generating pageviews, they can be reached via mobile services and e-mail alerts. This reach allows CNN.com to consume consumers in all lifecycles and in all environments.
The hassle-free way of getting news is in the basis of CNN’s business model and part of its value component. This approach is a one-stop shop for news consumers, which makes the product increasingly valuable due to its extent of reach and ease of access.
By launching Pipeline, CNN.com created a totally new market for video distribution, creating an even more attractive product by eliminating ads and offering a subscription-based model.
By launching Exchange, CNN.com reversed the information flow and allowed consumers to gain additional value by being a part of the newsgathering process and the ability to become a part of the firstness and the phenomenon of CNNing. The tagline CNN.com uses for promoting Exchange to users is “I report for CNN.” There are even corresponding t-shirts available for sale in the Turner store.
Virtual markets are unique. There are no time or place constraints. Geography is of no importance to the World Wide Web. Physical constraints are going away as well, as users are able to access the Internet not only from their desktop computers, but also from wireless laptops and wireless cell phones and PDAs. And CNN is represented in every channel of distribution.
Even with the newest technological advances like i-Pods and podcasting, CNN is making itself available to users and continue supporting its value to consumers.
Consumers find cell phones and broadband Internet access the most “life-changing” new technologies, according to Arbitron’s Internet and Multimedia 2006 report.
In its research, Arbitron have found that the item consumers reported having the most impact on their lives is the cell phone, with 38% of all respondents saying it had made a “big impact” on their lives. The second most important technology, the most powerful item is broadband Internet access. In the last year, iPod ownership more than doubled, from 10% to 22%.
Households with broadband Internet access have overgrown those with dial-up access. In 2005, the ratio of broadband and dial-up connections was 1 to 1. In 2006, 58% of households use either a cable or DSL modem for a high-speed Internet connection. 25% of those without a broadband Internet connection, say they plan to get high-speed Internet service in the next 12 months.
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