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CNN (owned by Time Warner TWX) recently announced that they will cease carrying the Reuters feed and use the money to beef up their own international offering. The Reuters feed was costing CNN approximately $3.5 million per annum. The stated rationale has a rather shaky logic.

Reuters is in the process of being acquired by Thomson (TOC) so the corporate suits probably wanted to redraw the battle lines. Sure you do not want to put cash into a competitors pocket. But at the level these guys play at $3.5 million is not financial significant. Reuters and Thomson are probably secretly happy that CNN will not longer carry them. It makes the Reuters news more proprietary especially when they develop a deep understanding of a story and cover it in detail. The headline hungry approach that CNN brings to the table will not develop the credibility that the marketplace will be demanding.

If you have ever travelled internationally and covered a professional payroll $3.5 million is a pittance. CNN will need to spend much more just to come even in coverage.

In the meantime Bloomberg TV is planning upgrades for OCT and has inked a deal with Comcast (CMCSA) bringing the channel to important lucrative markets such as New Jersey, South Florida and Washington.

If CNN is to be a factor if business reporting than it seems to in fourth place in a three way race among CNBC, Bloomberg and Fox.

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