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CNN Shuts Down Its Streaming Service Less Than a Month After Its Launch | business news

CNN’s parent company is shutting down its streaming service, CNN+, just weeks after its much-anticipated launch.

After the service was touted as CNN’s brave entry into the so-called “streaming wars,” the service will be shut down on April 30, the company said in a statement.

The network originally planned to invest more than $1 billion in the platform over the next four years.

However, at any point in time fewer than 10,000 people were reportedly using the service after its launch.

“CNN will be at its strongest as part of WBD’s streaming strategy, which sees news as an important part of a compelling broader offering along with sports, entertainment and non-fiction content,” said Chris Licht, CNN’s global chairman and chief executive officer, in a statement . “We have therefore made the decision to cease operations on CNN+.”

CNN’s head of digital streaming strategy, Andrew Morse, will step down when the service ends, the company said.

The company will instead focus on its core businesses, such as news and building CNN Digital, the company’s online unit.

It comes as the market is rocked by Netflix’s announcement that it lost 200,000 subscribers in the first three months of 2022, the first time there has been such a drop in more than a decade.

The streaming giant is currently the worst-performing stock on the S&P index, wiping more than $50 billion from the company’s market value.

One of America’s most famous investors, Bill Ackman, sold his $1.1 billion investment in Netflix on Wednesday, just three months after his hedge fund bought the shares.

He lost more than $400 million in the sale.

Netflix blamed some of the blame for the drop in subscribers on family members sharing the same account, something the company has recently cracked down on.

But analysts say the battle between the streaming titans — which now include Apple, Amazon, HBO, Hulu, and Disney — is another reason for a drop in subscriber numbers.

For some time now, there’s been growing concern that after more than a decade of meteoric growth, Netflix would eventually see subscriber numbers fall as its competitors ramped up their offerings.

CNN Shuts Down Its Streaming Service Less Than a Month After Its Launch | business news

Source link CNN Shuts Down Its Streaming Service Less Than a Month After Its Launch | business news

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