CNN’s steaming service has gained just 150,000 subscribers in its first weeks. Following the merger of Warner Bros and Discovery, the future and expansion of CNN+ to the UK and Ireland is in doubt.
CNN+ launched last month in the USA. However, despite managing to get 150,000 users to sign up, latest figures suggest only 10,000 users are dipping in daily.
Warner Bros had spent $100 million on marketing the service. Now the marketing budget has been frozen, and heads at the channel are rolling as a post-merger management restructure takes place.
Warner Bros and Discovery completed their merger earlier this month, bringing together a wide range of brands and streaming services under one roof. Initially, the plan was for business as usual, with each brand and streaming service continuing as normal until decisions over integration are made.
Bosses at Warner Bros ploughed ahead with the launch of CNN+, despite pre-merger statements by Discovery’s Chief Financial Officer Gunnar Wiedenfels that the combined company would merge its streaming services on to one platform.
Conflict at Warner Bros Discovery?
This week, a report by Axios indicates there is indeed differences in vision between bosses at CNN, within the ex-Warner Bros part of the business and with bosses from the former Discovery half of the business, which have taken key positions in the combined business. CNN bosses say CNN+ is successful, Discovery bosses disagree.
With HBO Max and Discovery+ set to merge, this left CNN+ in a precarious state even before it launched on 29th March. Some US commentators questioned why users would subscribe to CNN+ when they could already receive the main CNN channel.
Other broadcasters have incorporated their news services within their main streaming platform. For example, Comcast’s Peacock includes all of its news channels. And Paramount Plus includes CBS News.
Warner Bros Discovery is yet to comment on the future of CNN+.
Confused strategy in the UK
In the UK, CNN’s distribution strategy signalled a half-hearted switch to streaming last year. The channel dropped distribution on Freesat and Virgin Media, with Sky remaining the only major platform to continue carrying the channel. The move meant millions of households lost access to the channel at the end of last summer.
At the same time, its live stream for UK viewers went behind the paywall – it wants users to pay £1.99 a month to access the feed.
However, despite CNN leaving Freesat, it opted to not encrypt its satellite signal. This means the channel’s feed is still available on free-to-air satellite receivers through manual tuning.
And CNN has become more widely available on free streaming services, undermining the identical paid-for live feed. Smart TV and mobile users can watch CNN International for free on Samsung TV Plus or Rakuten TV.
Incidentally, in addition to controlling CNN, Warner Bros Discovery is also a shareholder in GB News alongside Dubai-based Legatum. The two channels are ideological polar opposites of each other.