CNN+ appears to be in dire straits less than a month after its launch, with executives at Warner Bros. Discovery sounding the alarm and cracking down on early investments.
The new parent company of CNN has suspended all external marketing spending for the subscription streaming service and laid off CNN’s chief financial officer amid flagging early viewership totals, sources told Axios.
CNN’s longtime CFO Brad Ferrer was replaced by Neil Chugani as part of a broader restructuring for the merger, with more business positions expected to be eliminated in the coming weeks, according to a report published Tuesday with the headline “CNN+ looks doomed.”
CNN+ DRAWS DISMAL VIEWERS IN FIRST FEW WEEKS AFTER LAUNCH
Executives at Discovery have also expressed frustration that CNN introduced its streaming service prior to the merger, complicating future possibilities of aligning the content with that offered through HBO Max.
With marketing around the platform stalled, it is unclear how the streaming service will meet an initial goal of becoming profitable within four years of its launch. A reported $300 million was already invested in the platform.
Instead of betting on the streaming service to help carry the network forward, executives are discussing leveraging CNN’s revenue around its main drivers, including the website and main app, sources told the outlet.
The March 29 launch of CNN+ sought to make a big splash, but early figures from the first few weeks suggest otherwise. The streaming service, which features big names such as Chris Wallace, Wolf Blitzer, and more, has drawn fewer than 10,000 daily users in the first two weeks, sources told CNBC.
Former leadership prior to the merger appeared optimistic after the launch, with former WarnerMedia CEO Jason Kilar saying subscribers and engagement were “ahead of” expectations.
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CNN has not publicly released CNN+ subscriber figures, but Axios reported there being roughly 150,000.
