Business Movers Podcast Summary
Episode: Making the News - Ted Turner and CNN | Two Giant Egos | 1
Release Date: March 13, 2025
Host: Lindsey Graham
Production: Wondery
Introduction: The Making of a Mogul
In the premiere episode of Business Movers, host Lindsey Graham delves into the dynamic and tumultuous journey of Ted Turner and the creation of CNN, the world's first 24-hour news channel. This episode, titled "Making the News - Ted Turner and CNN | Two Giant Egos | 1," explores the ambitious vision, relentless drive, and the significant challenges faced by Turner and his key partner, Reece Schoenfeld, in transforming the American news landscape.
Ted Turner's Vision and Early Success
The episode opens with a vivid reenactment of Ted Turner's victory in the 1977 America's Cup at Newport Marina, Rhode Island. At 38, Turner celebrates his triumph with exuberance, highlighting his competitive nature and refusal to accept failure. This scene sets the stage for understanding Turner's larger-than-life persona and his relentless pursuit of success.
At [00:28], Turner remarks, "It's all in the boat's name. Courageous. That's what got us over the line." This quote encapsulates his belief in bravery and strategic intelligence over mere speed—an ethos he would later apply to his media ventures.
Partnering with Reece Schoenfeld: A Strategic Alliance
Ted Turner recognized that launching a 24-hour news channel was an unprecedented endeavor that required expertise beyond his own capabilities. Enter Reece Schoenfeld, a seasoned television newsman with over two decades of experience. Their partnership was fraught with tension from the outset, primarily due to Turner's notorious arrogance and Schoenfeld's pragmatic approach.
At [07:46], Lindsey Graham narrates, "Reese was convinced that he had the talent and experience to pull it off. But then, Reese began to have second thoughts." This hesitation was rooted in Turner's difficult personality and the immense pressure of pioneering a new media format.
Building CNN: Overcoming Technical and Financial Challenges
The late 1970s marked a period of significant innovation in television, with cable TV expanding rapidly thanks to advancements like the RCA communications satellite launched in 1975. Turner saw an opportunity to fill a gap in the market—news—which was underserved compared to established niches like movies and sports.
The creation of CNN required substantial investment. By May 1979, Turner and Schoenfeld estimated a $20 million launch cost, followed by monthly expenses of $2-3 million. To finance this, Turner liquidated his North Carolina television station and secured initial commitments from advertisers, notably Bristol Myers, which agreed to a $10 million advertising deal targeting the over-60 demographic.
However, Turner’s overambitious subscriber targets—aiming for 3 million subscriptions from a then-16 million cable households—proved overly optimistic. By spring 1980, with only 1.7 million subscribers, Turner faced potential financial shortfalls that threatened to derail the launch.
The Satellite Saga: A Battle for Broadcast Infrastructure
A critical moment unfolded at [19:29], when Turner discovered that Satcom 3, the satellite tasked with broadcasting CNN, had gone missing shortly after reaching orbit. In a heated confrontation with RCA executives, Turner’s combative nature came to the fore. At [19:54], he demanded, "I want my spot, you got that? I'm spending hundreds of thousands of dollars every day on this."
Refusing to accept a delay, Turner threatened legal action, ultimately securing a spot on Satcom 1. This victory was pivotal, demonstrating Turner's unwavering determination to see CNN launched despite significant obstacles.
Assembling the CNN Team: Innovation Amidst Constraints
With the satellite issue resolved, Schoenfeld focused on building a competent team under tight budget constraints. Early hires included Schoenfeld’s wife, Pat O'Gorman, and seasoned journalist Burt Reinhart. Additionally, rebellious reporter Ted Kavanaugh was brought on board, embodying the "maverick" spirit Turner envisioned for CNN.
CNN's operations were unconventional. Schoenfeld implemented digital technologies early on, setting CNN apart from traditional, paper-reliant newsrooms. This included the use of videotape over celluloid film and digital teleprompters, laying the groundwork for CNN's modern news delivery methods.
Securing Advertisers and the Subscriber Challenge
Ted Turner's strategy hinged on intertwining advertising revenue with subscriber growth. At [15:09], Graham explains, "So to fund the new venture, Ted Turner sold the television station he owned in North Carolina."
Turner aggressively marketed CNN, leveraging his media savvy to attract advertisers even as subscriber numbers lagged. When CNN was on the brink of falling short of its subscriber target, Turner cleverly navigated the crisis by offering advertisers additional slots, effectively compensating for the lower-than-expected subscriptions. This maneuver secured the necessary advertising revenue, ensuring CNN's financial viability ahead of its June 1, 1980 launch.
Final Preparations and Launch Hurdles
As CNN neared its launch, the team faced logistical challenges, including unfinished studios and technical glitches. At [30:45], a dramatization depicts executive Ted Kavanaugh motivating his exhausted team, "We built a studio, we built a team. We built a new way of delivering the news."
CNN also established multiple bureaus in major cities to manage the 24-hour news cycle efficiently. This decentralized approach was innovative, allowing continuous coverage without overburdening a single team or location.
The final hurdle before launch day was securing compelling content. With NBC unwilling to share live footage of President Jimmy Carter visiting Vernon Jordan in the hospital, Schoenfeld and Turner were forced to innovate quickly to ensure CNN's maiden broadcast would make a strong impact.
Conclusion: Setting the Stage for a News Revolution
By May 31, 1980, despite numerous setbacks, CNN was poised to launch. The episode concludes with the team ready to go live, highlighting the culmination of Turner's vision and Schoenfeld's strategic execution. The tension underscores the high stakes and the transformative potential CNN held for American media.
Notable Quotes:
- Ted Turner [00:28]: "It's all in the boat's name. Courageous. That's what got us over the line."
- Reese Schoenfeld [07:48]: "It can and I am."
- Ted Turner [19:55]: "I'm spending hundreds of thousands of dollars every day on this. I've had people leave their jobs, good jobs, to be a part of CNN."
- Ted Turner [21:42]: "For every drop of blood I spill, I guarantee you'll lose a barrel."
Looking Ahead: The Next Episode
In the subsequent episode, Business Movers will continue to chronicle how Reese Schoenfeld and Ted Turner navigated the final moments before CNN's launch, transforming the fledgling network from a risky gamble into America's primary source of breaking news. Expect insights into the first broadcasts, the team's resilience in the face of adversity, and the early successes that cemented CNN's place in the media landscape.
Recommended Further Reading:
- Me and Ted against the World by Rhys Schoenfeld
- Mediaman by Ken Ouletta
- The Inside Story by Hank Wittemore
Credits:
- Host: Lindsey Graham
- Executive Producers: William Simpson, Aaron O'Flaherty, Jenny Lauer Beckman, Marshall Louie
- Audio Editing: Mohammed Shazeeb
- Sound Design: Molly Bach, Matthew Fillan
- Written and Researched by: Owen Paul Nichols
- Senior Producer: Scott Reeves