CNN’s new streaming service, CNN+, may already be on the chopping block just weeks after its debut, according to a Tuesday report.
Axios reported in a “scoop” that the network has pulled “all external marketing” campaigns, which is an indication that the sun is about to set on the streamer after its March 29 launch.
The Daily Wire reports:
Despite insiders at CNN reportedly believing the launch went well, executives at Warner Bros. Discovery apparently disagree — and have responded by laying off CNN’s chief financial officer and terminating “all external marketing” for the streaming service while they determine the best course of action for its future.
According to the Axios , there are several factors influencing the possible outcomes. First, despite projecting two million subscribers in the first year and profitability after four, CNN+ has only signed on about 150,000 so far — even with a discounted monthly price offering for those who sign up in the first five weeks. The streaming service’s average daily viewership, according to CNBC, is fewer than 10,000.
Fewer than 10,000 people are using CNN+ on a daily basis two weeks into its existence, sources tell CNBC, casting doubt on the future of the app following the combination of Discovery & WarnerMedia.
— CNBC Now
“CNN sought to make a huge splash with CNN+, luring big-name talent from rival news networks, such as Kasie Hunt from NBC News and Chris Wallace from Fox News,” CNBC reported. “But there is broad skepticism whether there’s enough demand to sustain a stand-alone news streaming service, with entertainment-first options dominating the landscape. Disney+, for instance, posted more than 10 million subscribers on its first day.”
Also, Axios reported CNN+ is not the only streaming service that could be on the chopping block, adding that “Warner Bros. Discovery wants to eventually build one giant service around HBO Max.”
Last week, reports indicated that major staff cuts are coming after the service attracted only about 10,000 daily paying users.
The Daily Wire noted that the investment cuts in CNN+ was foreshadowed last week:
Axios reported that CNN’s investment in CNN+ is expected to be dramatically cut and that projections for how many subscribers that service was expected to get will also be significantly reduced.
The report went on to say that “hundreds of millions of dollars are expected to be cut” from the projected $1 billion investment in the streaming service and that the company’s new Discovery-led leadership team has yet to decide what they will do with the struggling service.