Following multiple reports on its struggle to attract viewers, CNN Plus is shutting just one month after launching. Here’s more on it.
CNN Plus sees its last days
Launched on March 29, CNN Plus started right before the merger of Warner Media, its parent company with Discovery. According to multiple outlets, employees were told that the streaming service will close on April 30. The platform features live news, interviews, and original programs and showed signs of becoming a failure. The news was revealed in a Thursday memo by Chris Licht, the incoming CNN chief executive.
While the exact number of people subscribing to CNN Plus is unknown, reports from early April estimate less than 10,000 use it daily. The subscription was priced at $6 for a month or $60 per year. Customers are going to receive refunds, according to CNN. Around $100 million was spent on development costs and over 500 employees were working for the streaming service. It was also successful in attracting big names such as Fox’s Chris Wallace and Alison Roman for its lineup. However, there was skepticism floating on how a new paid streaming service would bring in people where there is a wide range of online TV available.
People are looking for an ‘all in one service’
According to David Zaslav, the CEO of Warner Bros., Discovery was unhappy with its launch right before the merger. In the memo, Licht stated that consumers were looking for “simplicity and an all-in service” and not “stand-alone offerings”. Previously Discovery had suggestions on merging the new firm’s separate streaming services, HBO Max and Discovery+ into a single app. He also added that employees of CNN Plus will be provided with opportunities to work at WarnerBros. However, Andrew Morse, the head of the streaming service is leaving the company.
“While today’s decision is incredibly difficult, it is the right one for the long-term success of CNN. It allows us to refocus resources on the core products that drive our singular focus: further enhancing CNN’s journalism and its reputation as a global news leader,” wrote Licht.
