Florida Jury Awards $5 Million in CNN Defamation Case; Revenue Decline Exposed During Testimony
CNN faced a significant legal and financial setback on Friday when a Florida jury ruled in favor of Navy veteran Zachary Young in a defamation case, awarding him $5 million in damages. The case centered on a November 2021 report by CNN correspondent Alex Marquardt, which aired during segments hosted by Jake Tapper and Jim Acosta. The jury concluded that the coverage defamed Young, marking a major blow for the network.
Following the verdict, the trial proceeded to a second phase to determine the punitive damages CNN owes Young. During this phase, testimony revealed concerning insights into the network’s financial health.
Revenue Decline Highlighted in Court
Forensic economist Robert W. Johnson, serving as an expert witness for Young’s legal team, provided an analysis of CNN’s financial records. According to Johnson, the network’s revenue dropped from $2.2 billion in 2021 to $2.0 billion in 2022, and further declined to $1.8 billion in 2023. This represents an 18% revenue reduction, equating to $400 million over three years.
Despite this downturn, CNN maintained profitability, reporting net incomes of $600 million in 2021, $300 million in 2022, and $400 million in 2023. The network’s 2023 cash flow profit stood at $424.9 million, highlighting its ability to sustain operations despite declining revenue and viewership.
A Broader Challenge for CNN
The defamation verdict and the exposure of revenue declines come amid broader challenges for CNN and traditional cable news outlets. The network faces increased competition from digital media platforms, shifting consumer habits, and intensified scrutiny over editorial decisions.
The case also underscores the potential financial risks for media organizations in an era where defamation lawsuits can result in substantial penalties. With punitive damages yet to be determined, CNN’s financial and reputational stakes remain high.
The trial’s outcome will not only impact CNN but may also set a precedent for how media outlets approach sensitive reporting moving forward. As the network navigates the fallout from this case, its financial trajectory and editorial practices will likely come under closer scrutiny.
CNN's finances that Axelrod referred to earlier based on 2023 tax documents given to Plaintiff. pic.twitter.com/WZBnwYQMNy
— Joseph A. Wulfsohn (@JosephWulfsohn) January 17, 2025
While CNN still earns profits, it’s hard to say how long that will continue. The network’s viewership has been falling dramatically over the past couple of years, with an even bigger dropoff after President-elect Donald Trump’s November victory.
“CNN averaged 501,000 total viewers and 110,000 A25-54 viewers during primetime for respective declines of -3% and -13% compared to the previous week,” Adweek reported late last week. “In total day, the network saw 455,000 total viewers and 80,000 A25-54 viewers. That’s a mixed bag performance-wise, as CNN ticked upwards by +15% in the former category, but dipped -1% in the latter.”
Meanwhile, Fox News is crushing all cable news competitors — still. During a ratings period that included the death of former President Jimmy Carter and ongoing major wildfires in California, CNN still underperformed compared to other news networks.
According to Nielsen live plus same-day data for the week of Jan. 6, Fox News Channel (FNC) drew an average of 2.546 million total viewers and 303,000 viewers in the 25-54 demographic during primetime. These figures represent increases of +47% in total viewers and +53% in the demo compared to the previous week.
In total day viewing, Fox News averaged 1.797 million total viewers and 227,000 viewers in the 25-54 demo, marking gains of +34% and +33%, respectively.
Among basic cable networks, FNC ranked second in total primetime viewers and rose from third to second place among adults 25-54. For total day ratings, Fox News reclaimed the top spot in total viewers and placed second in the 25-54 category.
During the week of Jan. 6, MSNBC’s primetime lineup averaged 721,000 total viewers and 55,000 viewers in the adults 25-54 demographic—a +62% increase in total viewers and a +45% jump in the demo compared to the previous week.
In total day viewing, MSNBC averaged 540,000 total viewers and 41,000 demo viewers, marking gains of +38% and +11%, respectively, from the prior week.
Among basic cable networks, MSNBC rose from eighth to third place in total primetime viewers and moved from No. 37 to No. 31 in the primetime demo. In total day, the network advanced from fifth to third in total viewers and climbed from No. 30 to No. 27 in the demo.
Looking at the ratings from a year ago, Adweek noted:
During primetime, Fox News was up by +27% in total viewers and +40% in the A25-54 demo. During total day, the network saw gains of +43% in total viewers and +51% in the demo.
MSNBC was down by -39% in total viewers and -51% in the demo. During total day, the network was down -35% in total viewers and -49% in the demo.
In primetime, CNN fell by -31% in total viewers and -23% in the demo. During total day, CNN was down by -11% in total viewers and -14% in the demo.
Sophia Rivers is an experienced News Content Editor with a sharp eye for detail and a passion for delivering accurate and engaging news stories. At TheArchivists, she specializes in curating, editing, and presenting news content that informs and resonates with a global audience.
Sophia holds a degree in Journalism from the University of Toronto, where she developed her skills in news reporting, media ethics, and digital journalism. Her expertise lies in identifying key stories, crafting compelling narratives, and ensuring journalistic integrity in every piece she edits.
Known for her precision and dedication to the truth, Sophia thrives in the fast-paced world of news editing. At TheArchivists, she focuses on producing high-quality news content that keeps readers informed while maintaining a balanced and insightful perspective.
With a commitment to delivering impactful journalism, Sophia is passionate about bringing clarity to complex issues and amplifying voices that matter. Her work reflects her belief in the power of news to shape conversations and inspire change.