Business Movers: Making the News - Ted Turner and CNN
Hosted by Lindsey Graham | Released on April 10, 2025
Introduction
In this episode of Business Movers, host Lindsey Graham delves into the transformative journey of CNN, exploring its inception, challenges, and lasting impact on American media and culture. Featuring insights from Lisa Napoli, author of Up All Night, Ted Turner, CNN, and the Birth of 24 Hour News, the conversation uncovers the pivotal moments and personalities that shaped the first 24-hour news network.
The Birth of CNN
The story begins on August 2, 1990, with Ted Turner standing outside the Atlanta Yacht Club, contemplating the future of his newly appointed CNN president, Tom Johnson. This moment marks a critical juncture as CNN prepares to cover one of the decade's biggest stories: the Iraqi invasion of Kuwait.
Lisa Napoli provides a comprehensive background on CNN's foundation, highlighting Ted Turner's vision and the collaboration with Reese Schoenfeld, CNN's first president. Turner, originally uninterested in news, saw an opportunity to revolutionize media by leveraging emerging cable and satellite technologies.
"Ted was at the right place at the right time with the right tools." (10:02)
Early Challenges and Growth
Initially, CNN struggled to gain traction. With limited cable subscribers and skepticism from traditional broadcasters, the network faced significant hurdles. Napoli explains that CNN's growth was gradual, relying on major news events to attract viewership.
"It took a long time for CNN to grow... It came out slowly and gradually." (15:23)
Key events that propelled CNN into the spotlight included the Space Shuttle Challenger disaster, the Tiananmen Square protests, and the Gulf War. These moments demonstrated the value of relentless, around-the-clock news coverage, establishing CNN as a trusted news source.
Key Personalities: Ted Turner and Reese Schoenfeld
Ted Turner's role as a visionary entrepreneur was instrumental in CNN's success. Despite not being a news enthusiast initially, Turner's commitment and financial backing were crucial.
Reese Schoenfeld, an experienced news executive, complemented Turner's business acumen with a deep understanding of journalism. Their partnership, though ultimately strained, was foundational in building CNN's early infrastructure.
"Ted had the money and Reese had the vision. They needed each other." (12:55)
However, strong-willed personalities led to tensions. Turner's business-oriented approach clashed with Schoenfeld's journalistic ideals, ultimately causing their split after several years.
Impact on Media and Culture
CNN's pioneering 24-hour news format reshaped how Americans consumed information. Lisa Napoli emphasizes that CNN's model moved away from traditional morning and evening news summaries, fostering a culture of instant news access.
"Every reporter today walks in the footsteps of Ted Turner and Reese Schoenfeld." (26:34)
The network's comprehensive coverage during the Gulf War elevated its status, making real-time news a standard expectation. This shift influenced other networks, leading to the emergence of competitors like Fox News and MSNBC, which introduced more opinionated and politically charged content.
The Evolution and Decline of CNN's Monopoly
As competition intensified in the late 1990s and early 2000s, CNN faced challenges in maintaining its dominance. Lisa Napoli outlines how external investments and ownership changes diluted Turner's control, leading to shifts in editorial direction.
"Once you give up control and take on investors, all bets are off." (25:41)
The entrance of Fox News and MSNBC, with their distinct political perspectives, fragmented the 24-hour news market. CNN attempted to stay true to its original mission of unbiased reporting but struggled against the rising tide of opinion-driven journalism.
Cultural and Political Consequences
The transformation of news into a competitive entertainment industry has had profound effects on American society. Lisa Napoli argues that the shift towards personality-driven and reactionary news consumption undermines informed public discourse.
"Everything is reactionary... there’s no way to step back and have a reflective thought." (33:38)
This evolution has contributed to a more polarized political landscape, where news is often consumed based on emotional reactions rather than in-depth analysis. The decline of objective journalism in favor of engagement and ratings has significant implications for democracy and societal discourse.
Additional Influential Figures
Beyond Turner and Schoenfeld, two key individuals played vital roles in CNN's early success:
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Bill Tush: The first cable television star, Tush's engaging presentation of news headlines drew nationwide attention to CNN's broadcasts.
"Bill Tush was the very first cable star and he helped draw attention." (36:44)
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Ted Kavanaugh: A formidable newsroom manager, Kavanaugh maintained high standards and discipline, ensuring quality journalism during CNN's formative years.
"He was the real drill sergeant who ran the newsroom on behalf of Reese." (36:44)
Business Lessons from CNN's Journey
Ted Turner exemplifies entrepreneurial resilience, taking calculated risks to build a media empire. Key business takeaways include:
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Vision and Persistence: Turner’s unwavering belief in CNN, despite early setbacks, underscores the importance of staying committed to a long-term vision.
"Ted took a thriving business and wanted to grow. He wasn't afraid of tough challenges." (39:32)
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Adaptability: CNN’s ability to leverage technological advancements and adapt its strategy in response to changing market conditions was crucial to its initial success.
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Leadership and Collaboration: The dynamic between Turner and Schoenfeld highlights the challenges and necessities of aligning business and journalistic goals.
Conclusion
CNN's inception marked a revolutionary shift in the media landscape, driven by Ted Turner's entrepreneurial spirit and Reese Schoenfeld's journalistic expertise. While CNN's monopoly eventually waned under competitive pressures and ownership changes, its legacy persists in the 24-hour news cycle and the way information is consumed today. Lisa Napoli's exploration of CNN's rise and transformation offers valuable insights into the interplay between business innovation and media ethics.
Recommended Reading
For those interested in further exploring CNN's history and impact, Lisa Napoli recommends:
- Me and Ted Against the World by Reese Schoenfeld
- Media Man by Ken Owletta
- CNN: The Inside Story by Hank Whittemore
This episode of Business Movers was produced by Lindsey Graham for Wondery, with research by Owen Paul Nichols and production support from Jake Sampson and Scott Reeves. Special thanks to Lisa Napoli for her invaluable insights.