In a surprising vote of confidence, the streaming service CNN+ shuts down operations after going live less than a month ago.
The streaming service launched on March 29, and on April 30, CNN+ will be no more. Taking a step back to rethink the strategy of the streaming service, Warner Bros. Discovery made the move in the wake of the big merger between the companies.
Employees received notice of the decision Thursday by incoming CNN CEO Chris Licht. According to Licht, subscribers will receive a prorated refund of their subscription fees. Warner Media dumped $300 million into the streaming service upon launch, but most said the move was too late to have any effect.
Trouble’s Brewing at CNN+
With the recent merger between Warner Bros. and Discovery, big changes were on the horizon. The company put new executives in charge, and the group’s reviewing the status of everything. Licht says:
“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.
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.”
The move is unprecedented. It signals that Warner Bros. Discovery has bigger plans for a larger-simpler streaming service in the near future. The entire streaming lineup’s expected to return for WB Discovery’s larger streaming lineup.
In the more immediate future, some of the shows could migrate over to HBO Max until the new streaming service is ready.
(Source: THR)
