Posted on 06/02/2019 12:54:23 AM PDT by Enterprise
That is unless there is a rich "sugar daddy" propping up CNN besides AT&T corporate.
I have no idea. But when I left the cable business in 1996 we were paying Turner about $4 a month, for CNN, Headline, TBS. TNT was another $1.50.
That was $5.50 a month, for every customer. That was a big chunk of our monthly basic cable charges. (Add in ESPN and MTV—at the time they were huge—and that was most of your bill.)
I knew they would lease multiple transponders—some of which we could pick up in our head-end. This was before everything was encrypted. I recall watching the raw footage come over from the Beirut Bombing before it was put on the air and edited.
So, renting transponder time is probably cheaper today than it was back then—digital technology has made it easier to “multiplex”, but its still VERY expensive.
Net 90 days means they are slow payers. Bad payers.
CNN is struggling to pay their bills.
When I had customers or vendors like this when I was in business, I stopped doing business with them. I cut my losses quickly.
It was easier to find a new customer or vendor than to spend my time trying to run down the money that was owed to me.
Does CNN really need advertisers? Do ratings matter?
CNN gets a piece of the pie that is CABLE SERVICE. Any cable company that carries CNN has to pay (I don’t have any idea how much, but they get paid).
This is true with any Cable Channel. Wonder why there are so many crappy channels that no one watches? It is because the big boys package channels. If a cable service wants the good stuff they have to take the crappy stuff.
I think this crappy business plan is going to kill the cable industry as people do their own ala carte programming.
That is great news! I hope CNN keeps up the good work (of liquidating).
Stars. the Encore people, did that to me. The terms on paper were Net 30. After 30 days, they then tried to wiggle out of it by claiming it was Net 30 after some other arbitrary period of 60 days. I immediately left, the project folded, and I got paid at 30 days.
GE pulled this on my (former) company years ago. They announced that they were moving to 90 day terms for vendors, but would "reward" themselves for early payment (net 30) by discounting our fees.
I can just see the young brilliant MBA making this powerpoint presentation. :)
We raised our rates to compensate, and then some.
Net 90 does NOT mean one payment every 3 months.
It means getting paid 90 days after the date of the invoice & the work performed.
IF I submit 8 invoices for work in a 3 month period, spread out, then I would be expecting payment 90 days later for each separate invoice. I would NOT be expecting payment for all 8 invoices in one payment.
Yes, I understand that it doesn’t mean they only get paid every three months.
I love to use that phrase. It does irritate the hell out of the left.
Oh ok. Big difference. Thanks
“net 90...means the company’s freelancers will be paid just once every three months.”
Wow, the author is a real economic genius. “Net 90” does not mean that. If I write and article every week, it means that my customer has up to 90 days to pay me for each invoice I submit. If I submitted weekly invoices and, if they took the full 90 days to pay, I would still get a weekly paycheck, just delayed by 90 days. It doesn’t mean I can submit an invoice every three months. There’s a BIG difference between the two.
Over the past few years, I had many customers redlining the draft contract during negotiations from Net 30 to Net 90 (our CFO usually agreed to the change for the biggest customers). It’s good business practice if you can get your suppliers to agree to it.
Of course, it’s also a red flag that the company is having cash flow problems, which is no big surprise in CNN’s case.
Changing to Net 60 or Net 90 is a big red flag that they are having cash flow problems.
“A drop in the bucket”
Yes, but I’ve been in those finance meetings where every department is expected to pony up and do their part to control the hemorrhaging.
This is usually when finance starts getting petty. They’ll eliminate use of company phones and laptops (except for management), forcing ordinary employees to use their personal phones and computers instead. They squeeze the vendors. They prohibit using short-term parking and taxis on business trips. Picking up a dinner tab requires VP approval in advance. That kind of petty stuff.
And even though the fixes amount to peanuts, they still get pats on the back from the CEO for “doing their part.”
The next move, I hope, is that the cable companies will start imposing Net 90 days paying CNN.
It would most certainly be just dessert.
ATT is not responsible for the debts of CNN
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