CNN+, a streaming-only platform launched by CNN, shuts down just a month after launch and $500 million flushed down the drain | tech news

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Is it possible to lose $16 million every day for a month? Yes, if you are CNN. Warner Bros. Discovery, the parent company of CNN, announced yesterday that it will shut down CNN+ on April 30, just a month after the launch of the streaming-only service.

CNN+, which spent about $500 million on its app, including marketing and talent, had hired at least 450 employees, according to a Bloomberg report citing Business Insider. The hired staff included journalists and engineers who worked on the streaming service’s technology. CNN+ is the latest in a string of big-company spinoffs that have collapsed in recent years.

WarnerMedia launched the standalone streaming news service less than a month ago, on March 29, as a $5.99 standalone service. The company said customers will receive prorated refunds for subscription fees. CNBC reported that in the two weeks after its launch, CNN+ garnered fewer than 10,000 daily active viewers.

Warner Bros. Discovery blames the outage and abrupt shutdown on the crowded streaming media market. In a statement Wednesday, JB Perrette, President and CEO of Warner Bros. Discovery said, “In a ritzy streaming market, customers need simplicity and all-in[-one] Service that offers greater expertise and value than standalone options.”

In another statement Thursday, CNN Worldwide Chairman and CEO Chris Licht said:

“This is not a quality decision; We appreciate all the work, ambition and creativity that went into building CNN+, an organization with great talent and compelling programming. But our customers and CNN are best served with simpler streaming choices.”

Meanwhile, the company also announced that CNN+ CEO Andrew Morse is leaving Warner Bros. Discovery after a transition period.



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