CNN’s new streaming service is already a flop, just two weeks after launching.
Rumors are spreading in media that the network is preparing to make makor cuts because it’s not delivering the subscriber base that was expected.
Many people saw this coming. If CNN’s ratings are terrible, why would customers pay even more for a streaming service?
Big cuts coming for CNN+ after slow start
Investment and projections for CNN+ are expected to be cut dramatically in response to a low adoption rate, two sources tell Axios.
By the numbers: The news giant was initially planning to invest around $1 billion in the service over the next four years.
– Hundreds of millions of dollars are expected to be cut from that original investment total.
– To date, around $300 million has been spent on the subscription service, which includes a sizable marketing investment.
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– The new company’s leadership team still has yet to decide the ultimate fate of CNN+. CNN’s new boss, Chris Licht, will start May 1.
Details: CNN executives, with help from consulting firm McKinsey, originally expected to bring in around 2 million subscribers in the U.S. in the service’s first year and 15-18 million after four years.
– They originally planned for the service to break even after four years.
– Much of the subscriber opportunity executives see comes from international markets.
– Sources say those subscriber expectations will need to be dramatically reduced if investment is cut.
Chris Wallace, who left FOX News for CNN+ is reportedly fuming.
SOURCE: Chris Wallace is "having daily breakdowns" over the "miserable launch" of @CNNplus. Wants a "CNN show or is threatening to walk" they go on. "He is having staffers count how many times a day his promo is playing"
— Jon Nicosia (@NewsPolitics) April 12, 2022
Other people are laughing at CNN.
If there is one more article about this today, I may actually be hospitalized with schadenfreude overload.
How much money did CNN pay McKinsey to convince them that people will pay to watch their hosts that nobody wants to watch for free? https://t.co/fWCwaEnhpQ
— Glenn Greenwald (@ggreenwald) April 12, 2022
You have to wonder what they were thinking.
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