CNN+ Fails: Cuts Expected
Bo Banks
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CNN+ Fails: Cuts Expected. After the disastrous launch of CNN+, the network is in trouble as it prepares to make big cuts to their staff.
Dramatic cuts are expected for CNN+ in response to the subscription service's low adoption rate, two sources tell Axios. https://t.co/hEWxH6V0Lt
— Axios (@axios) April 12, 2022
CNN+ Fails: Cuts Expected
Sources say that CNN+ has only been able to garner around 10,000 daily users, which is far below what was expected. This has led to major layoffs at the network already, with Chris Wallace being the latest high-profile personality to be let go.
CNBC reported that, “fewer than 10,000 people are using CNN+ on a daily basis two weeks into its existence.”
“To put that daily user number in perspective, CNN’s cable network suffered a sharp decline in viewership last year but still rang up an average of 773,000 total viewers a day,” the outlet continued.
As expected, critics of CNN were quick to voice their opinions about the network’s worse than expected premium subscription numbers.
CNN has already invested $300 million into CNN+.
This works out to ~$30,000 invested per daily viewer. Absolutely dismal numbers. https://t.co/LT6J3ASH6G
— Andrew Kerr (@AndrewKerrNC) April 12, 2022
THEY… THOUGHT… PEOPLE… WOULD… PAY… FOR… CNN https://t.co/fzZr3j8Ony
— Greg Price (@greg_price11) April 12, 2022
According to Axios, “The news giant was initially planning to invest around $1 billion in the service over the next four years. 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.”
The Axios report said that “hundreds of millions of dollars are expected to be cut” from the projected $1 billion investment. Which is surprising to some because the network apparently “planned for the service to break even after four years.”
Probably the biggest headlines CNN+ ever made was when it first announced that long time Fox News correspondent Chris Wallace would be joining the new premium subscription service.
Since that news first aired, there has been little to no noticeable incentives for consumers to subscribe to new service, especially considering all the other alternatives for media that are currently on the market.
Ex-WarnerMedia CEO Jason Kilar who pushed the launch of CNN+ before CNN merged with Discovery had this to say prior to leaving the company just last week: “It’s ahead of my expectations in terms of where the subscribers are, the engagement, the receptiveness that we’re getting in terms of people’s response to the journalists of CNN+,” he said. “I couldn’t be more proud of that team.”
Kilar’s short time at CNN seems to be indicative of the general feeling around the network as of late, which can be best summed up with this quote from an anonymous CNN employee: “People are just trying to figure out how we got here and what the hell do we do now.”
CNN+ was supposed to be CNN’s answer to combatting declining ratings and help the network keep up with its competitors. But it seems like, for now at least, CNN+ has only made things worse.
Renowned journalist Glenn Greenwald had this to say about the network’s continuous downward trend in viewership since Trump left office.
Even with a major war ongoing, the continued disappearance of MSNBC and CNN's audience is extreme and rapid. The number of viewers under 55 watching MSBNC's prime-time shows is barely 100k or less. These are mid-level YouTube numbers. pic.twitter.com/agrrwSLTe5
— Glenn Greenwald (@ggreenwald) April 12, 2022
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