CNN Effect


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CNN Effect

A theory stating that the market suffers during intense news coverage of a major event because persons stay home and watch the coverage, rather than go out and buy goods and services. This is a controversial theory and little evidence documents it. However, its effect, if any, would likely impact services more negatively than goods. For example, watching a natural disaster on television may prevent one from going to the cinema and watching a film about a natural disaster. It will not, however, prevent one from buying groceries. More generally, the CNN effect refers to the idea that 24-hour cable news has given the public the impression, but not necessarily a correct one, that it is more engaged with current events.
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Finally, while they find some support for the idea of an international two-step flow, they-along with others-question the validity of the CNN effect in terms of media impact on political figures and public policy.
The CNN effect is not as strong as it was 12 years ago,' said David Healy, an industry analyst at Burnham Securities.
Loosely known as "the CNN effect," the proliferation of live news coverage is informing large audiences at an incredible pace, but a price is often paid for speed.
The impact of this kind of media coverage has been dubbed "the CNN effect," referring to the widely available round-the-clock broadcasts of the Cable News Network.
The CNN effect thus is a double-edged sword--a strategic enabler and a potential operational risk.
In an age of multiple 24-hour cable news networks using satellite technology, the CNN effect will exert even greater pressures on the tension between the "control freaks" and the "anarchists.
But the closer one looks at those incidents that supposedly prove a CNN Effect, where dramatic and/or real-time images appear to have forced policy makers into making sudden changes, the more the Effect shrinks.
Even many military officers, who might be expected to criticize media performance, have found the CNN Effect to be less than it is billed.
foreign policy establishment was disabused of this notion in Somalia, an experience that probably permanently shrunk this facet of the CNN Effect.
The Kuwaiti invasion, and the perceived threat to Saudi Arabian oil supplies, sends gasoline prices higher, but, perhaps of equal concern to retailers, keeps their customers indoors, glued to their television sets in an obsessive state that comes to be known as "the CNN effect.
John Tiffany's skillful direction blends battlefield realism with multimedia CNN effects and abstract movement (choreographed by Steve Hoggett).