Definition of CNN effect:
The CNN effect can cause individuals and organizations to react more aggressively towards the subject matter being examined. For example, regular coverage of turmoil in the banking sector may result in investors withdrawing from bank stocks or even moving their deposits out of banks being mentioned. This in turn would heighten the turmoil, perhaps feeding into the news cycle again and potentially triggering a wider financial crisis.
The CNN effect is a theory that 24-hour news networks, such as CNN, influence the general political and economic climate. Because media outlets provide ongoing coverage of a particular event or subject matter, the attention of viewers is narrowly focused for potentially prolonged periods of time. This increased attention can affect the market values of companies and sectors that find themselves in focus.
The effect, or influence, that certain news media have on government decision-making and/or consumer spending. This term, which was first widely used during the Persian Gulf War, suggests that consumer spending slows down during catastrophic events because people will stay home to watch the news and stay abreast of current events.
How to use CNN effect in a sentence?
- The CNN effect can be seen to cause overreactions in the market, but the same constant supply of information has also helped the markets in many ways.
- The CNN effect is a specific instance of a media effect and the cable news channel it is named for has since been eclipsed by the Internet and social media as the key source for real-time information.
- The CNN effect observed that real-time coverage of breaking news and world events prompts a stronger reaction from investors and consumers than would have happened otherwise.
Meaning of CNN effect & CNN effect Definition