After less than a month in operation, CNN’s dedicated streaming service, CNN Plus, is being shut down. During an all-hands meeting on Thursday, new CNN CEO Chris Licht announced that the service would shut down completely on April 30th.
After the announcement of the network’s closure, Licht sent a note to CNN+ workers, thanking them for their hard work and saying that the decision “is not a reflection on the quality of the talent and material at CNN+.” He said that the choice was based on a larger plan. Simplicity and an all-inclusive service, rather than stand-alone options, are what customers are looking for in a crowded streaming market.
According to him, employees will be paid and given benefits for the next 90 days and will earn at least six months of severance if they don’t find new jobs at the firm. The head of CNN Plus, Andrew Morse, is leaving the firm.
From the outset, the network seemed doomed. It was meant to offer a fresh approach to news coverage, with personality-driven programming and access to CNN’s greatest original series. Unlike the parent network, it didn’t provide live streaming of the linear channel, instead of attempting to create its own, more tailored kind of news reporting. As part of this effort, the corporation was also trying to figure out how to provide news material to a more on-demand audience and make the news more interactive.
Reports claim that CNN has already invested $100 million (and even $300 million) in CNN Plus, with plans to spend $1 billion on the programme over the next several years. A recent report this week suggests that roughly 150,000 individuals have joined up for the $5.99-per-month programme as of this week.
It’s impossible to tell whether CNN Plus would have been a long-term success since it was shut down, at least in part due to a corporate strategy violation. It was a busy time for the firm, since Licht’s hiring as CEO and the completion of the newly consolidated Warner Bros.
The Discovery of organisational structure coincided with the introduction of the service. Since HBO and Discovery are shifting their approach toward creating a big integrated streaming package that includes HBO Max and Discovery Plus, executives were said to be annoyed that CNN Plus was introduced at all.
The CNN Plus functionality, rather than the CNN Plus subscription itself, would make more sense in that scenario. In recent years, it’s difficult to find one with a shorter lifespan than CNN Plus CNN Plus in recent years.