Collapse of CNN+ continues after Warner Bros reportedly cuts marketing spending



A report in Axios detailed the collapse of CNN+, the premium news subscription service headlined by former longtime Fox News anchor Chris Wallace.

The report said that Warner Bros. Discovery had pulled external marketing spending for the service, according to five separate sources. They also reportedly cut CNN's longtime chief financial officer over the debacle.

The report said that CNN executives believed the launch of the premium service was a success, but those at Warner Bros. disagreed with that assessment.

CNN+ has garnered only 150,000 subscribers, while a previous report claimed the service only saw 10,000 viewers on a daily basis, falling far short of expectations.

CNN+ executives reportedly hoped to see 2 million subscribers in the first year and as many as 15 to 18 million over four years. The service officially launched on March 29 and charges subscribers $5.99 a month, or $59.99 annually to stream its news content.

Discovery executives were said to be upset that CNN+ launched early before it could be aligned with the goals of the parent company.

A separate report in May claimed that CNN+ was already heading towards employee layoffs in May.

In December, radio host Howard Stern was among many who mocked the news that Wallace had left Fox to join CNN+.

"People don't want CNN, who the hell's gonna pay for CNN+? I mean are they outta their minds?" Stern joked. "Good luck bein' seen on that thing!"

Later reports surfaced that Wallace was growing frustrated that plans for the subscription channel were imploding due to the resignation of Jeff Zucker in the wake of revelations about an inappropriate relationship with an underling.

Here's the trailer for the CNN+ service:

World-class storytellers | Now Streaming | CNN+www.youtube.com

CNN+ floundering; streaming service has fewer than 10,000 daily users: CNBC



CNN+, the much-hyped (by CNN) subscription streaming service from the cable news company, has fewer than 10,000 daily users two weeks after launch, according to a report.

Company insiders who spoke to CNBC News revealed the streaming platform's poor audience numbers amid reports that CNN executives are about to dramatically reduce their planned $1 billion investment in the project after parent company WarnerMedia completed its merger with Discovery to become Warner Bros. Discovery.

CNN+, which launched on March 29, was initially expected to bring in about 2 million U.S. subscribers in its first year and 15 million to 18 million after four years, according to Axios. Reportedly, CNN has already spent $300 million developing and marketing the service. The company poached high-level talent from rival networks to support its launch, including Chris Wallace from Fox News and Kasie Hunt from MSNBC.

But there's little indication that initial investment is paying off. Shortly after launch, reports emerged that CNN+ employees were bracing for layoffs amid "lackluster" subscriptions.

The subscription service charges users $5.99 a month or $59.99 annually to stream content and was available on desktop and various streaming devices including Amazon Fire TV, Android phones, tablets and Apple devices at launch. The service only became available on Roku Monday, and it is not yet available on Android TV.

Having fewer than 10,000 daily viewers would appear to confirm that subscriptions are lagging. By way of comparison, CNN's cable TV channel averaged 773,000 total daily viewers in 2021.

Publicly, the company maintains that things are going well. "We continue to be happy with the launch and its progress after only two weeks," a CNN spokesperson told CNBC.

CNN+ has not disclosed how many subscribers it has. Entertainment-based subscription services, which dominate the streaming industry, boast millions of subscribers. Netflix, in a recent disclosure, reported 22 million global subscribers and 75.22 million paid memberships in the U.S. and Canada. Disney+ acquired 10 million subscribers on launch day in 2019 and now reports having more than 118 million subscribers. ESPN+, a sports news streaming service, claims to have 21.3 million subs.

Axios reported Tuesday that the new leadership at Warner Bros. Discovery wants to cut hundreds of millions of investment dollars for the streaming service amid concerns about its future. Chris Licht will take over as CEO at CNN on May 1 and is expected to make a decision about the CNN+'s future then.