😍 2022-04-21 22:37:06 – Paris/France.
Photo by John Greim/LightRocket via Getty Images.
Light Rocket via Getty Images
Netflix NFLX x losing 200 subscribers was big tech news on Wall Street yesterday, but today's shocking news is that the service of Streaming by subscription CNN+ closes less than a month after its launch. The service debuted at a price of $5,99/month, but early subscribers got a 50% lifetime discount.
However, after the merger of Warner Bros. with Discovery Communications, all external marketing was halted, so the service seemed doomed from the start.
Axios reported that only 150 people signed up for the service through April 000. The company had planned to spend $19 billion on CNN+, which isn't expected to generate positive cash flow for four years.
Part of that may be down to the economy – inflation just hit a 40-year high of 7,9% – but a lot of it is probably down to the fact that free news is everywhere. It would be hard to justify paying a monthly fee for news even if CNN+ had hired big names like Audie Cornish, Kasie Hunt and Chris Wallace.
The decision must have been difficult for new CNN chief Chris Licht (showrunner and executive producer of “The Late Show With Stephen Colbert,” who called an on-deck meeting with staff today to announce the decision. He looks like some of the content being developed for CNN+ will survive, but it will be through a service of Streaming free.
"While today's decision is incredibly difficult, it's the right one for CNN's long-term success," said CNN President Chris Licht, who doesn't officially start until May 2 but advised the CEO of Warner Bros. Discovery, David Zaslav, on CNN strategy.
The service had already spent $300 million in cash and will now have to reimburse the service's few existing subscribers on a prorated basis. The sum is not trivial – CNN+ is estimated to have spent more than $500 million in its first year of operation, more than half of CNN's own annual programming budget.
The decision calls into question the future of Fox Nation, the service of Streaming from Fox News which is also priced at $5,99 per month. They may be more successful in gaining subscribers than CNN+ as it has deals with multi-channel services like Comcast CCZ and Cox, as well as being promoted by Amazon Fire TV, Android, Apple AAPL iOS, Apple TV, Google Chromecast, Roku, Samsung smart TV, Xbox One and Vizio smart TV.
Licht provided employees with a grim outlook for the job market. Streaming in general, declaring during the staff meeting: “In a market of Streaming complex, consumers want simplicity and a comprehensive service that provides a better experience and more value than stand-alone offerings. CNN+ boss Andrew Morse has resigned from the company.
SOURCE: Reviews News
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