In the ever-changing world of cable news, speculation is brewing about potential changes to the large salaries earned by top anchors.
Recent reports have suggested that new CNN chief Mark Thompson is looking closely at the sizable contracts held by the network's most recognizable names. With a background at the frugal BBC and New York Times, Thompson is focused on revolutionizing CNN's digital presence in order to prepare for the looming decline of traditional TV.
However, it's not just CNN that may be considering changes to their talent pay structure. Sources say that even Fox News, which is currently still a billion-dollar profit machine, is taking a closer look at the hefty salaries of its top stars. This comes as a result of the rapidly declining cable subscription rates and the increasing popularity of alternative, more affordable streaming options. As a result, many cable news networks have resorted to layoffs in order to maintain profitability.
The industry shift has affected not only traditional reporters but also the network's stable of contributors. In an effort to cut costs, networks have reduced contributor pay or let them go entirely. The days of Roger Ailes offering six-figure contributor deals are long gone. Now, commentators are often left weighing their options between providing free commentary or accepting a tiny fraction of what they previously commanded.
In addition to contributor pay cuts, the networks are also facing potential scrutiny over the salaries commanded by their top anchors and personalities. A recent report from The Wrap's Emily Smith suggested that Mark Thompson may be eyeing cuts for top CNN stars such as Anderson Cooper, Wolf Blitzer, Jake Tapper, and Chris Wallace, who allegedly pulls in $8.5 million a year. Even higher salaries are reported at Fox News and MSNBC, with stars like Sean Hannity and Rachel Maddow commanding annual wages upwards of $25 million and $30 million, respectively.
These high salaries may be causing tension between newsroom colleagues amid growing job insecurity. With dwindling budgets, networks are becoming less willing to engage in bidding wars for top talent, leading many to question why a few select individuals continue to earn millions while newsroom staff are being laid off in droves. Sources say that executives are beginning to differentiate between "irreplaceable hosts" and those who are more expendable, indicating that some anchors may be more vulnerable than others.
Despite the bleak outlook for the future of linear TV, cable news networks are seeking ways to diversify and ensure profitability in the digital age. Fox News, for example, has launched a successful streaming platform, along with a books division and weather network.
CNN, on the other hand, boasts the most-read news website in the world. However, these revenue sources still pale in comparison to the affiliate fees and advertising revenue generated by traditional TV, making salary cuts a likely reality for even the most successful anchors.
While some may view this as the end of an era, others in the industry have a more optimistic outlook. As one insider said, "the old formula isn't crumbling so much as shifting." With the right attitude and willingness to adapt, it's possible that these changes could open up new opportunities for talented individuals in the cable news industry.
As networks continue to search for innovative ways to remain profitable in a post-linear world, the power of personality and the ability to attract a dedicated audience will likely remain a key factor in determining the success of a cable news anchor.