Major television networks are contemplating reducing the salaries of key TV personalities to mitigate financial losses as cable news viewership declines.
From CNN to Fox News and other mainstream media outlets, securing multi-million dollar contracts is becoming increasingly unfeasible as the industry faces challenges.
Top TV anchors have been earning significant sums, ranging from a few million dollars annually to up to $30 million, as reported by The Ankler. Rachel Maddow of MSNBC commands an annual salary of $30 million, while Sean Hannity of Fox News reportedly earns around $25 million per year. Anderson Cooper of CNN typically takes home between $20 to $25 million annually.
Cable news networks primarily rely on revenue from advertisements and affiliate fees. However, distrust in mainstream media and the rise of alternative news sources on social media and digital platforms have led to a decline in revenue. Mediaite notes that the number of US households subscribing to traditional TV services has dropped below half.
CNN’s new chief, Mark Thompson, previously with the BBC and New York Times, was surprised by the high salaries of TV personalities in the US compared to those in the UK. Thompson, tasked with revitalizing the network, has initiated cost-cutting measures, such as canceling Chris Licht’s morning show due to poor ratings, resulting in job losses.
According to reports, Thompson aims to finance a digital-first strategy by reducing anchor salaries, causing concern within the network.
In recent years, major layoffs have occurred across mainstream networks like CNN, MSNBC, NBC, Fox News, CBS News, and ABC News. The evolving business model prompts networks to assess all expenses, including talent costs.
As outlets consider cutting costs while profits remain robust, tensions between high-profile stars and other employees are escalating. Some view salary adjustments for top talent as a means to preserve jobs and enhance the overall product.
