CNN Admits Big Pharma Cash Flow Critical, Trump HHS Rule Might Cripple Network [WATCH]

CNN acknowledged this week that proposed reforms to pharmaceutical advertising by Health and Human Services Secretary Robert F. Kennedy Jr. could financially impact major broadcasters, including its own network, as reported by The Western Journal.

In a June report, CNN stated that two new policies being considered by HHS could “cripple some broadcasters” by limiting pharmaceutical companies’ ability to advertise directly to consumers on television.

The network noted the potential threat to its own advertising revenue if these regulations are implemented under the administration of President Donald Trump.

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The proposed measures would not constitute a full ban on direct-to-consumer (DTC) drug advertisements but would increase the burden on pharmaceutical companies in two ways.

First, advertisers would be required to include more detailed disclosures about potential risks in their ads, increasing airtime and cost.

Second, the HHS may prohibit drug manufacturers from deducting these ad expenses as business costs on their taxes, which would remove a key financial incentive for running them.

According to Bloomberg, these changes would significantly raise the cost of DTC pharmaceutical advertising and potentially deter companies from continuing to fund such campaigns at the current volume.

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CNN acknowledged that the United States remains one of only a few countries that allow prescription drugs to be marketed on television. Most countries ban the practice outright.

In 2024 alone, pharmaceutical companies spent over $5.15 billion on TV advertising, and $3.4 billion of that went to linear television during the first eight months of the year — an 8.1 percent increase from the year prior, according to data cited by CNN.

Roughly half of all DTC ad spending went to news broadcasters, including CNN, Fox News, MSNBC, and CBS News, based on a December 2024 report from eMarketer.

That figure underscores the extent to which the pharmaceutical industry remains a dominant force in network advertising revenue, particularly for legacy media outlets.

Secretary Kennedy’s office issued a statement to CNN explaining the administration’s intent behind the policy review.

“As Secretary Kennedy has consistently emphasized, direct-to-consumer pharmaceutical advertising must prioritize accuracy, patient safety, and the public interest — not profit margins,” HHS spokesman Andrew Nixon stated.

Let’s get President Trump back in the White House and me to DC so we can ban pharmaceutical advertising. pic.twitter.com/Qp7fj9xskU

— Robert F. Kennedy Jr (@RobertKennedyJr) November 3, 2024

“We are exploring ways to restore more rigorous oversight and improve the quality of information presented to American consumers.”

The Biden-era tax loophole that allows DTC pharmaceutical ads to be written off as a business expense has come under increasing scrutiny on Capitol Hill.

In April 2024, a bipartisan group of lawmakers introduced legislation to eliminate the deduction. A companion bill was filed in the Senate a month later by Senator Josh Hawley (R-MO) and Senator Jeanne Shaheen (D-NH), where it remains in committee.

Another Senate proposal, led by Senators Bernie Sanders (I-VT) and Angus King (I-ME), seeks to ban DTC drug advertising entirely.

The Trump administration has not committed to a full ban, but Secretary Kennedy’s regulatory path may circumvent Congress by limiting the economic viability of these ads through executive rule changes at HHS.

CNN’s report comes as the network appears to acknowledge the financial stake it holds in preserving the status quo. The headline — “RFK Jr. wants to crack down on drug ads.

That could cripple some broadcasters” — suggests that CNN and other outlets may face a significant drop in revenue if pharmaceutical companies pull back on spending.

No final decision has been made on the proposed rule changes, but HHS has indicated that restoring oversight and transparency remains a top priority.

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