Why was CNN+ dropped
The door to CNN + CNN’s paid streaming service is closing almost as fast as it opened.
CNN announced this week that the service will end on April 30, just weeks after it came out.
After $300 million in funding was injected, CNN+’s demise drew heavy criticism from those who say the idea was an expression of arrogance rather than practicality by CNN.
“Since my mother watches, I will admit that rejoicing in the failures of others is probably inappropriate, so let’s be clear, our problem is indicative of the arrogance of those CEOs who believed in CNN+,” Leland Vittert, host of NewsNation’s “On Balance” said on Thursday.”
They actually thought there was a Jake Tapper book club market; They wanted people to pay for it.”
CNN + shutdown
Dan Abrams of NewsNation, host of “Dan Abrams Live,” has been a critic of the idea of CNN+ since its inception. Like Vert, he sympathized with journalists and staff who might lose their jobs because of the ominous idea.
“While I was predicting that CNN+ would go the same route as Betamax and Microsoft Zune, at this point I wouldn’t step on the grave…
A lot of people have left good jobs to go there and hundreds could lose theirs,” Abrams said.
Abrams was particularly critical of the former Warner Bros. CEO. Jason Kilar, who said on April 5 that CNN+ was running ahead of his expectations and charted the streaming service as a success.
CNN+ was priced at $5.99 per month and was expected to break even after four years of existence.
CNN predicted it would bring in 2 million subscribers in its first year and would grow exponentially to 15-18 million subscribers.
CNN+ was built before Warner Bros. acquired it.
Discovery, the huge media giant, on CNN. According to the Associated Press, the new leaders at Warner Bros
Discovery that they considered CNN+ an ill-advised idea.
In a memo to employees Thursday, CNN’s new CEO, Chris Licht, said consumers want “simplicity and one-stop service” rather than standalone offerings. Discovery has previously suggested that it wants to combine the new company’s separate streaming services, which include Discovery+ and HBO Max, into a single app.
At a town hall on Thursday, executives also said the service’s inability to show live breaking news was a critical failure. Due to contracts with cable and satellite companies, CNN+ was unable to broadcast CNN Television.
“It’s a bit like a New York Times subscription without the New York Times,” said JB Perrette, Discovery’s head of streaming services.