The most busted name in news! CNN’s $300bn streaming service is axed in just THREE WEEKS as lower-level staff find out through social media and slam bosses for ‘pulling rug out beneath us’
- CNN CEO Chris Licht said Thursday that CNN+ would be done at the end of April
- He claimed that it was due to customers wanting ‘simplicity and an all-in service’
- Andrew Morse will leave but it was not clear what will happen to its famous hosts
- Mr Licht said those who worked for CNN ‘will get opportunities to apply for jobs’
Warner Bros Discovery will shut down CNN+ after just three weeks because the $300million flop failed to take off.
New CNN CEO Chris Licht said it would be pulled at the end of April due to consumers wanting ‘simplicity and an all-in service’ rather than ‘standalone offerings’.
He admitted the decision was ‘incredibly difficult’ but claimed it was ‘the right one for the long term success’ of the company.
The chief of CNN+, Andrew Morse, will leave the company but it was not clear what will happen to famous hosts such as Chris Wallace and Eva Longoria.
Meanwhile lower level workers reportedly only found out they would lose their jobs over social media and slammed bosses for ‘pulling the rug out beneath us’.
Licht said workers ‘will get opportunities to apply for jobs elsewhere inside Warner Bros Discovery’ but admitted it was a ‘uniquely sh**y situation’.
The streaming service was panned today as ‘one of the biggest flops in US broadcasting history’.
The $300million startup was unveiled to huge fanfare – and a glitzy New York City launch party – but drew in a pathetic 150,000 subscribers.
It was previously reported executives thought its growth rate could have competed with the Wall Street Journal and the Washington Post at up to 2.9million.
Critics mocked CNN for shutting down the streaming service so quickly, with one asking: ‘Wait… there was a CNN+?’
Donald Trump released a statement ‘congratulating’ it for ‘their decision to immediately FOLD for a lack of ratings, or viewers in any way, shape, or form’.
Meanwhile an industry insider told DailyMail.com Wallace has ‘total egg on his face’ for ‘fronting the biggest media failure of the century’.
But some workers spoke out this afternoon, saying they were ‘extremely proud’ of the work they had achieved over the course of three weeks.
The move is a major embarrassment for the network after it was unveiled to much fanfare three weeks ago, including a glitzy launch party in New York. Pictured: Ken Jautz, Andrew Morse, Kasie Hunt, Chris Wallace, Rex Chapman, Anderson Cooper, Amy Entelis, and Michael Bass at the launch event in New York last month
Around 200 reporters and big name hosts including Chris Wallace and Eva Longoria (pictured) have now been left in the lurch
It is unclear what will happen to huge signings such as Chris Wallace (pictured) – who signed from Fox News – actress Eva Longoria and writer Alison Roman
Rex Chapman and Brian Stelter are pictured at the CNN+ Launch Event at PEAK NYC Hudson Yards last month
The companies shared dipped by more than eight per cent to just over $21 today as the news was announced
CEO Chris Licht says decision ‘is right one’ for future of CNN
In his memo, Mr Licht said consumers wanted ‘simplicity and an all-in service’ rather than ‘standalone offerings’ rather than what CNN+ offered.
He said some content will wind up on other company networks, and workers will get opportunities to apply for jobs elsewhere inside Warner Bros Discovery.
But he said that the head of CNN+ – Andrew Morse – would be leaving the company.
Mr Licht wrote: ‘While today’s decision is incredibly difficult, it is the right one for the long-term success of CNN.
‘It allows us to refocus resources on the core products that drive our singular focus: further enhancing CNN’s journalism and its reputation as a global news leader.’
Key members of staff were reportedly only told about the news hours before a town hall meeting with the CEO at lunchtime.
Meanwhile most of the lower-level workers were left in the dark and only heard about it through the press and social media.
Those who cannot get another job at the company will reportedly be given at least six months’ severance package while those looking inside the firm will be given 90 days of additional pay.
CNN news reported on CNN+ being shut down this afternoon, claiming it was ‘hyped as one of the most signifiant developments in the history of CNN’.
The Twitter post appeared to have misspelled significant, with the full post saying: ‘CNN+, the streaming service that was hyped as one of the most signifiant developments in the history of CNN, will shut down on April 30, just one month after it launched.’
‘Biggest flop in US broadcasting history’: CNN+’s talent and fallen hopes of $3m streaming service:
Chris Wallace: Veteran Fox News anchor who was ‘ready for a new adventure’
Veteran Fox News anchor Chris Wallace said he had left the network after 18 years because he was ‘ready for a new adventure’.
He said in a statement he was ‘thrilled’ to be joining the longtime Fox competitor.
He said: ‘I am thrilled to join CNN+. After decades in broadcast and cable news, I am excited to explore the world of streaming.
‘I look forward to the new freedom and flexibility streaming affords in interviewing major figures across the news landscape—and finding new ways to tell stories.
‘As I embark on this adventure, I am honored and delighted to join Jeff Zucker and his great team. I can’t wait to get started.’
Since joining CNN+ – and in the three weeks it lasted – he produced some of the few stand out moments.
He clashed with White House Press Secretary Jen Psaki when the veteran news anchor grilled her over Joe Biden’s lack of sit-down press interviews.
She also opened up about some of her most notable moments in the briefing room and discussed her tears over Florida’s ‘Don’t Say Gay’ bill.
He also had a heated exchange with author of the 1619 Project Nikole Hannah-Jones, where she claimed Americans who fought in the Second World War were guilty of ‘brutally suppressing democracy’ for black Americans.
CNN+ host Chris Wallace has debated 1619 Project author Nikole Hannah-Jones over her assertion that the Greatest Generation were brutal oppressors
Eva Longoria: The actress turned travel journalist who was ‘so excited’ to go Searching For Mexico
Eva Longoria said she was ‘so excited’ to start at CNN+ before she was left in the lurch by the company when it shut down.
She was set to celebrate her heritage by executive producing and starring in six-episodes of Searching for Mexico.
The 47-year-old actress – who boasts 22.4M social media followers – said in December: ‘Secret’s out!
‘So excited for this to launch next year! Big thank you to Stanley Tucci for setting the bar.’
She was referring to Stanley Tucci: Searching for Italy starring the 61-year-old Oscar nominee, who’s also executive producing Searching for Mexico.
‘Partnering with CNN on a culinary-driven expedition throughout Mexico is a dream come true,’ Longoria said in a statement.
‘I am so proud of my Mexican-American roots and can’t wait to bring the hidden gems of Mexico to the world through Searching for Mexico.’
On the show, the Casa Del Sol co-founder looked at how blue agave is harvested for tequila and how traditional mole sauce is cooked in Oaxaca.
The 46-year-old actress tweeted: ‘Secret’s out! So excited for this to launch next year! Big thank you to Stanley Tucci for setting the bar’
Audie Cornish: Seasoned NPR anchor who was just ‘thrilled to be a part of it’
Audie Cornish joined CNN and CNN+ in January from NPR, where she worked for its All Things Considered program.
She joined NPR’s National Desk in 2005, reporting from Nashville, covering the aftermath of Hurricane Katrina in Louisiana.
Cornish later joined the NPR politics team in Washington to cover the 2008 presidential race and Barack Obama’s election.
Audie Cornish joined CNN and CNN+ in January from NPR, where she worked for its All Things Considered program
She said in January: ‘I am very excited to join CNN and the CNN+ team. There are fresh stories to be told and new ways to tell them.
‘CNN has a dynamic system of reporters and storytelling channels. I am thrilled to be a part of it.’
It was not immediately clear what her position at the firm was after CNN+ was shut down.
Alison Roman: Ex-New York Times food writer who had VERY public spat with Chrissy Teigen and joined new CNN venture
Food writer Alison Roman joined CNN+ to work on cookery programs and was seen as a ‘a perfect addition’ to the line-up.
Executives had invested in food-related shows to try to draw a younger audience.
Roman said at the time: ‘I could not be more thrilled to be partnering with CNN Plus on this project.
‘I’ve been dreaming about bringing a new sort of cooking and food show to life for years and I can’t think of any place better to make it a reality.’
Food writer Alison Roman joined CNN+ to work on cookery programs and was seen as a ‘a perfect addition’ to the line-up
Amy Entelis, CNN Worldwide’s executive vice president for talent, added: ‘Alison’s unique style and tone make her a perfect addition to our CNN Plus line-up.
‘From vinegar chicken to shallot pasta – we are thrilled that Alison will share the stories behind her signature recipes with the subscribers of CNN Plus.’
Roman was food writer at the New York Times but left in December 2020 after her huge spat with Chrissy Teigen.
In May of that year she apolgized to the model for saying she was ‘horrified’ by her food-based ‘content farm’.
After Teigen took to Twitter to defend her Cravings brand, Roman tried to backtrack.
She said: ‘I shouldn’t have used you /your business (or Marie’s!) as an example to show what I wanted for my own career- it was flippant, careless and I’m so sorry.’
She added: ‘I sent an email but also wanted to say here that I’m genuinely sorry I caused you pain with what I said.’
Critics mock CNN+ for flopping in just three weeks
Critics, including former President Trump, mocked the website for the quick demise of CNN+ while others questioned management for pushing through with the service.
He said: ‘Congratulations to CNN+ on their decision to immediately FOLD for a lack of ratings, or viewers in any way, shape, or form.
‘It was like an empty desert out there despite spending hundreds of millions of dollars and the hiring of low-rated Chris Wallace, a man who tried so hard to be his father, Mike, but lacked the talent and whatever else is necessary to be a star.
‘In any event, it’s just one more piece of CNN and Fake News that we don’t have to bother with anymore!’
An industry insider told DailyMail.com: ‘Chris Wallace has total egg on his face – leaving his plum gig at FOX News to front the biggest media failure of the century.
‘At least Quibi lasted eight months – CNN+ couldn’t even make it 30 days. If I worked at CNN I’d be p***ed – $300 million to launch a streaming service that can’t even make it a month.
‘Chris Wallace interviewing Judy Collins should have been the first signal this was doomed – who was going to watch that? What a waste of $8m, CNN should have left him at FOX.
‘CNN had three years to plan this out – and they couldn’t even last 30 days, what an embarrassment.’
Patrick Moorhead wrote: ‘Anyone surprised? @CNN has fallen over the past 5 years and is having a hard time getting up.’
Joe Pags said: ‘CNN+ is going away. Did you know it existed?’ CNBC’s Alex Sherman said: ‘CNN+ offered a ‘lifetime’ deal where you only had to pay $2.99 a month and you were a subscriber for life.’
He added: ‘Hard not to chuckle at that concept today, even if Gallows humor (my favorite).’
Nicholas Fondacaro posted: ‘CNN+ wasn’t worth 1 penny. So they should get all their money back.’
Another man added on Twitter: ‘CNN+ is now the biggest flop in the history of broadcasting.’
In his memo, Mr Licht said consumers wanted ‘simplicity and an all-in service’ rather than ‘standalone offerings’ rather than what CNN+ offered
But staff and supporters rally to defend network, saying they’re ‘very proud of the work’ they achieved in three weeks
But others, including some of those who worked for the firm, leaped to defend it this afternoon.
Producer Erika Ryan said: ‘Let me just say I’m very proud of the work I’ve done at CNN+.
‘I work with world class journalists and we have poured our heart and soul into creating content that we’re extremely proud of.
‘Well if anyone needs a producer with print, digital, live tv writing, control room and now ~streaming~ experience, I’m available for hire!’
Another, Ellie Smith, posted: ‘PSA if you’re going to tweet something snarky about CNN+, hundreds of journalists and technicians who did nothing but work their tails off just had the rug pulled out from under them. So be kind.’
Chief National Affairs Analyst Kasie Hunt said: ‘(Some of you are asking about me. I am proud to be on team CNN. I will be fine. It’s not about me right now.)
‘The journalists I have been privileged to work with on CNN Plus are world class I am so incredibly proud to be able to call them colleagues If your organization would like a chance to benefit from their talents, my DMs are open This is *my* job for the foreseeable future.’
NPR’s Mary Louise Kelly put: ‘Sending strong thoughts to the journalists & friends who poured their talents & energy into creating something brave and new at CNN+.’
A source told Mediaite: ‘I feel so badly for them. [It] had tons of potential but there were certainly some questionable programming decisions.
‘A lot of young talented people gave up good jobs to go there. That’s the really sad part.’
Warner Bros Discovery CEO was ‘against idea of CNN+’ amid huge AT&T investment
Under AT&T, there were $100 million in development costs and some 500 employees assigned to building out CNN+.
The service had attracted big names for its lineup, from ex-Fox anchor Wallace to Roman, as part of the company’s effort to appeal to younger people.
There had been skepticism a paid news streaming service would attract interest from consumers, who already have available a slew of online TV.
While Fox has a paid streaming service, Fox Nation, other major TV news organizations make their apps available free.
Warner Bros Discovery CEO David Zaslav was reportedly against the streaming service from the start.
Executives are said to be under pressure to fill a huge hole in company finances as it battles to shake off a reported $55billion debt.
It comes after reports said bosses slashed its marketing budget and consider rolling the service into HBO Max.
CNN parent company Warner Bros. Discovery, which formed through a merger earlier this month, was said to have cut all external marketing spending.
It is the latest turmoil at the company, after WBD said it would move to cut $3billion in costs and chief financial officer Brad Ferrer was ousted.
Destined to fail? Subscriber numbers ‘peaked at just 150,000’ despite hopes for 2million in first year
CNN+ launched on March 29, weeks before the April 8 closing of the $43billion merger between Discovery and CNN parent company WarnerMedia.
The hasty launch was seen by some observers as a move to preserve turf and budgets for the streaming service.
CNN had originally planned to turn it profitable within four years by investing $1billion into its growth.
But the early subscriber numbers were woeful, with just 150,000 paying customers, according to Axios.
CNN+ had recruited top talent, including (left to right) Fox News veteran Chris Wallace, actress Eva Longoria, and Alison Roman, an Instagram personality and cooking author
Andrew Morse, CNN’s chief digital officer (pictured) was leading the new CNN+ team, but will leave the company
CNN chief financial officer Brad Ferrer (left) has reportedly been ousted in a cost-cutting move as Warner Bros Discovery CEO David Zaslav (right) restructures the newly combined company
A ‘deal of a lifetime’ that ‘wasn’t worth a penny… How much did CNN+ cost?
CNN+ launched last month with a base price of $5.99 per month, or $59.99 for an annual subscription.
Subscribers who signed up the first four weeks were eligible for half off that monthly price for life, in what CNN called the ‘deal of a lifetime’.
After the promotion ends, the CNN+ monthly base price was set to be the same as rival Fox News’ established streaming service, Fox Nation, which started in 2018.
Critics today branded it ‘not worth a penny’ and said the ‘lifetime deal’ made customers a subscriber for life.
Within Discovery, execs were reportedly frustrated the CNN+ launch was not delayed until the merger closed.
WBD, led by CEO Zaslav, is said to be interested in pursuing a streaming strategy centered on HBO Max, rather than multiple niche subscription services.
Under this plan, some CNN+ shows would be incorporated into the tentpole HBO Max service.
Discovery also has its own streamer, Discovery Plus, which will reportedly also be merged into HBO Max.
Execs seem to feel consolidation is the right move in the fractured streaming market, and want to offer a premier combined service rather than multiple niche streamers.
Discovery executives are also believed to be interested in moving CNN away from opinion programming and back towards its roots as a hard news outlet.
Sources told Axios WBD was considering a plan to fill fired host Chris Cuomo’s former 9pm weekday slot with a live nightly newscast.
But the ‘hard news’ strategy also bode poorly for CNN+, which was focused primarily on personality-driven soft news content.
Confusion over CNN’s streaming strategy was fed by a lack of communication between WarnerMedia and Discovery executives.
The dramatic departure of CNN boss Jeff Zucker, who resigned in February after failing to report a romance with his top lieutenant, also did not help matters.
To date, CNN has reportedly spent about $300million on launching the CNN+ service and made hundreds of hires.
In February, Jeff Zucker (left) resigned under pressure for violating corporate policy by not disclosing the nature of his consensual romance with second-in-command Allison Gollust (right), his friend and colleague of over 20 years
After being announced as Zucker’s successor, Licht sent a memo to his future staff that teased changes the exec plans to implement once in the big seat.
He wrote: ‘I look forward to getting to know all of you and hearing your candid thoughts and feedback.
‘Our viewers demand the truth from us, and I want to learn the truth from you. Together, we will double-down on what’s working well and quickly eliminate what’s not.’
In the bulletin, Licht said his one directive as incoming president was to ensure it ‘remains the global leader in news’ as the network’s parent company merged.
Despite reports as few as 10,000 people were using CNN+ on a daily basis, a spokesman said last week the news network was satisfied with it.
They said: ‘We continue to be happy with the launch and its progress after only two weeks.’
CNN+ launched last month with a base price of $5.99 per month, or $59.99 for an annual subscription.
Subscribers who signed up the first four weeks were eligible for half off that monthly price for life, in what CNN called the ‘deal of a lifetime’.
After the promotion ends, the CNN+ monthly base price was set to be the same as rival Fox News’ established streaming service, Fox Nation, which started in 2018.
CNN recruited top talent for CNN+, including Fox News veteran Chris Wallace, actress Eva Longoria, and Alison Roman, a former New York Times food writer.
CNN+ featured live daily news programming, original series, true crime shows and food and travel docuseries.
CNN+ boss Morse claimed last month: ‘Nothing like CNN+ exists. There is no news and non-fiction streaming subscription offering available today, and only CNN can create and deliver a global news product with this kind of value to consumers.
‘We’re thrilled to offer CNN+’s world class journalism, premium storytelling and Interview Club platform at this attractive price.’
Source: Read Full Article
