In this article:
- Streaming has been a booming business for content producers, but now some are facing challenges
- CNN closed its streaming service CNN+ a few weeks after it was rolled out
- The network had had big plans for CNN+ as a source of additional profit
CNN went from plus to minus in a matter of weeks.
The cable news network introduced a streaming service called CNN+ on March 28, 2022. But by April 30, CNN’s owner Warner Brothers Discovery said that it was closing down the service after spending millions of dollars ahead of the launch. The demise of CNN+ could be an indicator of an increasingly competitive market for streaming services.
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CNN, which brings in an estimated $500 million in profit annually, had estimated that the streaming platform would add another $800 million in yearly profit by 2030. The network reportedly expected that 1 million people would subscribe to the service in the first year. However, only 150,000 members signed up during the first month. A CNN+ subscription costs $2.99 per month for early adopters, $5.99 for regular subscribers, or $59.99 per year.
In order to drum up business for the service, CNN planned on releasing special programming with hosts Don Lemon and Anderson Cooper, as well as fresh talent like food writer Alison Roman and reporters from other networks such as NPR and NBC News. In early April, parent company AT&T spun off Warner Brothers and Discovery into its own newly merged company known as Warner Brothers Discovery.
The news of the collapse of CNN+ came around the same time that industry leader Netflix announced that it had lost subscribers for the first time in a decade. As a result, Netflix is exploring an ad-supported tier to its offerings for the first time. Disney Plus also said in March that it was planning on releasing a version of its platform with ads by the end of 2022.
The latest from these streamers might be a sign that the landscape of the streaming industry is changing. Many networks have released streaming versions of their programming. But some consumers might be reaching their threshold of what they’re willing to pay for content. And networks like CNN might not make the cut.