When the Cable News Network hit the airwaves in 1980, it changed the face of television news forever. CNN reached 1.7 million households on its first day; now it reaches more than 170 million. The network's coverage of long-running news events, such as the Gulf War, the O.J. Simpson trial, and the Clinton-Lewinsky scandal have set new standards for comprehensive news gathering, and transformed the way we get our news. CNN's companion 24-hour news network, Headline News, was established in 1982, as was CNN Radio. Since then, CNN has added a European news network, a sports network in conjunction with Sports Illustrated (CNN/SI), a financial news network (CNNfn), and a Spanish-language news network.

In 1996, Time Warner acquired Turner Broadcasting System, Inc., which is CNN's parent company. With more than 3,500 journalists and an on-air talent list that includes Wolf Blitzer, Christiane Amanpoor, Bernard Shaw, Larry King, and Jesse Jackson, the company's flagship network will continue to stand out among the recent arrivals in the 24-hour cable news industry. CNN is now bringing its experience, expertise, and prestige to its newer specialty networks and is maintaining an interactive news service through the World Wide Web. In May 1999, the network announced the launch of a new consumer technology show as part of its $50 million partnership with the computer publishing company International Data Group.

The O.J. effect

CNN ratings have previously lived with a vulnerable and erratic viewership. The O.J. Simpson trials are but one of many examples of stories that have boosted CNN ratings sky high, only so they can take a nose dive when the verdict is announced and the chapter is closed. In an attempt to free its ratings from this dependence on an uncontrollable world, CNN has attempted to build a regular audience through specialty shows, such as its business and sports segments. The strategy has led to a partnership with its Time Warner stablemate Time magazine to produce a news magazine show called Newstand, as well as inspiring the establishment of CNN/SI, a network which CNN admits is "having trouble getting launched", despite the fact that it's over two years old. While CNN executives feel confident that CNN/SI's sports coverage is the best because they are "journalists," not "fans," the ratings disagree. CNN is a far third in a race against the respective first and second place sports networks, ESPN and Fox Sports network.

Not necessarily the news

While Newstand sought to stabilize network viewers, it instead created a frenzy among them. On June 7, 1998 the series' premier night, CNN unveiled an exclusive story that accused the U.S. military of bombing American defectors with lethal tear gas in Laos in 1970. The military denied the allegations and heavily criticized the report. CNN and Time hired a media lawyer, whose investigation concluded that the story was unsubstantiated. CNN retracted the story, fired its chief producer, and reprimanded a writer and anchor; two producers of the story also resigned.

Cutting losses

During the course of war coverage in Yugoslavia, CNN estimated that $1.1 million dollars worth of equipment had been stolen, confiscated, damaged or destroyed since the NATO bombing began in March 1999. The bombing of one building took down a CNN satellite transmitter valued at $400,000. The network is further thrown off by the departure of Lou Dobbs, considered by many to be the personification of CNN news. He announced his departure from the network in June 1999, after having served as the executive vice president of CNN and, more importantly, the anchor of Moneyline for almost 20 years. Moneyline is the network's biggest moneymaker.

A victim of peaceful times

With no war or landmark legal case to attract viewers, CNN's ratings in the U.S. have slumped; in June 2000, they were the lowest since 1991. Management reorganization has taken place alongside the poor ratings. Major moves have included the demotion of CNN mogul Ted Turner, after the merging of Time Warner and AOL; and news that CNN's No. 2 executive, Steve Korn, would leave the network in summer 2000.