CNN+ to shut down a month after launch, 350 may lose jobs

CNN Plus is a digital video streaming service and a subsidiary of CNN cable television news network. It was launched only on March 29, 2022, but late last week, its abrupt closure was announced.

The CNN+ streaming service is set to shut down by the end of this month, and this is happening just a little over three weeks after its establishment. Prior to its debut, it was publicized as one of the most remarkable developments in the history of CNN, but apparently, it was a failure.

The company said that people who signed up for a subscription would be given refunds of fees. The move to close CNN Plus was a decision made by the new management after WarnerMedia, CNN's former parent company, was acquired by Discovery, and the merger created Warner Bros. Discovery earlier this month.

According to CNN Business, before the merger, the company’s goal for CNN+ counteracts David Zaslav’s, Warner Bros. Discovery chief executive officer, plan to include all of the firm’s brands under one streaming service. Some of CNN Plus’ programming may make it to this service, and others may be moved to CNN's main TV network.

J.B. Perrette, Discovery's streaming chief boss, and Chris Licht, incoming CNN CEO, already informed employees of the decision to shut down the network’s video streaming service on Thursday via a meeting. Licht admitted to the employees that the situation is bad and unpleasant.

With CNN Plus’ exit from the video streaming business, around 350 workers may lose their jobs, as per CNBC. The CNN chief told staff that they would continue to be paid and given benefits for the next 90 days to look at other opportunities at CNN, CNN Digital and other units under the Warner Bros. Discovery group. Those who will not be employed in any of the company’s business units will be receiving a minimum of six months of severance pay.

"In a complex streaming market, consumers want simplicity and an all-in service which provides a better experience and more value than stand-alone offerings, and for the company, a more sustainable business model to drive our future investments in great journalism and storytelling," Perrette said in a statement. "We have very exciting opportunities ahead in the streaming space and CNN, one of the world's premier reputational assets, will play an important role there.”

Finally, The New York Times stated that CNN Plus’ shutdown is a disgraceful end to a project into which CNN poured in hundreds of millions of dollars and lured top talent from other networks for its programs. There was a huge nationwide marketing campaign and big contracts were signed to hire famous anchors from other networks, including Chris Wallace of Fox News, NBC’s Kasie Hunt, and Audie Cornish, an NPR co-host. However, everything ended in mere three weeks under the new corporate leadership team.