CNN+ Shutting Down Less Than a Month After Launch
Less than a month after it launched, the streaming service CNN+ will wind down operations, as its new corporate owner, Warner Bros. Discovery, rethinks the news giant’s streaming strategy. The service will shut down April 30, after launching on March 29.
WarnerMedia had spent some $300 million on the launch of CNN+, and planned to spend hundreds of millions more in the coming months and years. Subscribers to CNN+ will receive prorated refunds for their fees.
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CNN employees were informed of the decision Thursday by incoming CNN CEO Chris Licht. Andrew Morse, the CNN digital executive who oversaw the launch of CNN+, will depart the company. CNN executive Alex MacCallum, who had been CNN+’s GM, will step in to lead CNN Digital following Morse’s departure.
“As we become Warner Bros. Discovery, CNN will be strongest as part of WBD’s streaming strategy which envisions news as an important part of a compelling broader offering along with sports, entertainment, and nonfiction content,” said Licht in a statement. “We have therefore made the decision to cease operations of CNN+ and focus our investment on CNN’s core news-gathering operations and in further building CNN Digital. This is not a decision about quality; we appreciate all of the work, ambition and creativity that went into building CNN+, an organization with terrific talent and compelling programming. But our customers and CNN will be best served with a simpler streaming choice.”
While CNN+ will be shutting down, CNN programming is expected to become an important piece of WB Discovery’s overall streaming lineup. Some shows are expected to find their way to HBO Max, which will become the centerpiece of the company’s streaming efforts. Others may live on CNN’s digital properties. It is not clear what will happen to the talent hired specifically for CNN+, like former Fox News anchor Chris Wallace, though some will find places to land elsewhere in the company’s stable of programming.
Most CNN+ employees, meanwhile, will be out of a job. Staff were told Thursday that they will continue to be paid and receive benefits for 90 days, and will be encouraged to apply for jobs elsewhere at the company. After that 90-day period, they will be laid off with a minimum of six months severance.
“Consumers are the center of our strategy,” WB Discovery’s streaming chief JB Perrette said in a statement. “In a complex streaming market, consumers want simplicity and an all-in service which provides a better experience and more value than stand-alone offerings, and, for the company, a more sustainable business model to drive our future investments in great journalism and storytelling. We have very exciting opportunities ahead in the streaming space and CNN, one of the world’s premier reputational assets, will play an important role there.”
The subscription streaming service marked a major bet by WarnerMedia on streaming news, although it took a vastly different approach than many of its competitors. While NBC, CBS and ABC focused on free streaming news brands that were an extension of their TV programming, CNN worked to build out an alternate slate of shows, including formats like travel shows, cooking programs and interview series. And while most of the competitors were free, CNN+ carried a $5.99 per month fee (Fox News’ Fox Nation also carries a subscription fee, and explored other genres).
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