You assume it is always the same deal. Lets say you are correct. CNN had the option of not being a guest. Why did CNN choose to be a good houseguest in Iraq given such a deal? Why did they accept the deal?
Some possibilities:
They thought it a good commercial strategy and let profits define their moral center.
They were secretly working for the forces of good.
They didnt give a damn.
They swore an oath (to what god?) of allegiance to ironic objectivity. (That is they invented some sophist reason not to give a damn.)
They were coerced to be there and behave.
Their inner self demanded that they be reporters and so they heroically accepted the deep, intimate pain of keeping the horrific news to themselves in order to attain their true calling.
They were just following orders.
We Americans and our first amendment are held with little regard in parts of the world where this constitutional right is not taken for granted. Tyrants are perfectly willing to let the media be their propaganda tool and if the guests don't play by their rules, they're executed or tossed out.
Saddam didn't invent this game. In fact, he probably was more subtle about it than some other dictators.