CNN Effect – Definition

Cite this article as:"CNN Effect – Definition," in The Business Professor, updated January 10, 2020, last accessed June 4, 2020, https://thebusinessprofessor.com/lesson/cnn-effect-definition/.

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CNN Effect Definition

The CNN effect describes the influence that media outlets, especially CNN has on the government and economic policies. The CNN is at the center of the CNN effect, this media network runs a 24-hour news chain that has significant effects on political governance, business, economy, and others. The CNN coverage of crucial subject matters attracts the attention of stakeholders, individuals, and organizations to the extent of making policies around the reported subject matter.

There are several other media outlets that operate like the CNN these media outlets provide reportage of events in the society, thereby drawing the attention of government and policy-makers to certain subject matters they would have otherwise not pay attention to.

A Little More on What is the CNN Effect

The type of coverage given to a particular matter by media outlets determines the type of reaction that will follow. The CNN effect is a phenomenon that affects different industries, sectors, and organizations. For instance, investors in the market might make decisions based on how a particular market incident is reported, this is known as the CNN effect.

There are many benefits of the CNN effect in the society, this includes accountabiity on the part of the government and policymakers. The CNN effect also facilitates government intervention in subject matters they might not have interest in ordinarily. Examples of such subject matters are humanitarian crises, natural disasters, environmental disorders, among others.

The CNN Effect Post-Television

Ultimately, the CNN effect is about how the activities of media outlets shed light on different subject matters in business, governance, and other sectors that might hitherto not be known if not reported. This theory became popular in the 1980s, it examines the spread of information and its connection to the activities and reportage by media outlets such as CNN. The media outlets brought crucial matters that otherwise would not have been known to the fore. The cable news played a crucial to the spread of information and events, as more people had access to news and information.

In recent times. The social media coupled with the advent of new technologies have overtaken the formerly fast cable news. Oftentimes, media outlets now depend on social media o have a grasp of happenings in different parts of the world. Regardless of this fact, the CNN effect is a theory that believes that the activities or event coverage by media outlets have significant impacts on consumers. The reportage around a subject matter tells on consumer behaviors as well as policies that will be made.

Reference for “CNN Effect”

https://en.wikipedia.org/wiki/CNN_effect

https://www.investopedia.com › Insights › Buzz & Trending

www.businessdictionary.com/definition/CNN-effect.html

https://investinganswers.com/financial-dictionary/stock-market/cnn-effect-2426

https://www.americanforeignrelations.com/O-W/Television-The-cnn-effect.html

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