The subscription service for the news network hadn’t been in operation for more than a month prior to Warner Bros. Discovery announced this week it would close on April 30,
Steve Rosenbaum, the executive director of NYC Media Lab, said that “it’s going to in the Top 10,” referring to the long history of products that failed to survive.
Although “CNN minus” comments quickly rose in number, it isn’t a joke for the more than 300 employees who were hired for CNN+. The service was developed for two years. CNN will absorb some of these jobs, but there will also be layoffs — more details on that are still emerging.
The company spent hundreds upon millions of dollars on this project, and nobody knew when or if losses would be replaced with profits.
Old-timers will remember the Edsel in 1957, when Ford introduced a new model of car that was too expensive and poorly made. Ford spent $250 million to discontinue the model after it was used for two years. The name Edsel is still a symbol of business failure, and will be long forgotten.
Coca-Cola’s 1985 attempt to launch a new flavor was canceled within weeks. The DeLorean was a minor character in the “Back to the Future”, movies. In 1999, Segway’s inventors discovered that only a few people would spend $5,000 on a glorified scooter.
Quibi, which stands for “quick bites,” was supported by Hollywood’s most prominent actors and $1.75 million from investors when the mobile video platform was launched in 2020. It was in operation for six months.
Josef Adalian, a reporter, recalled failure in an article published by Vulture titled, “CNN+ Has Quibi Vibes” and posted just two days after its launch.
Adalian wrote that CNN+ felt a lot like the Quibi of streaming media. “Lots and lots of money have been spent, stars have joined, but it’s difficult to understand what the service is supposed be and why so many people will pay for it.”
Rosenbaum, who is a self-described news junkie was unable to figure out what CNN+ had that was so unique and important for him. Rosenbaum said that he had never considered paying the $5.99 monthly subscription fee.
He stated that it featured “lots and lots of famous faces that you get from other places.”
CNN+ offers a few of its news programs and documentaries . However, due to cable and satellite agreements, CNN+ cannot offer a streamed copy of the TV network’s continuous news coverage.
People can stream news from multiple places, such as ABC, CBS, and NBC, all for free.
Allen Adamson, cofounder and CEO of Metaforce Marketing, stated that timing is everything when launching a business. “Streaming services were in bubble, and everyone knew there was an limit to the number of streaming services they could get.”
Many observers believed that CNN+ would be absorbed by a larger app with entertainment features when Discovery purchased out AT&T, the previous corporate owner of CNN.
It didn’t get there, and some employees were left shocked at Thursday’s meeting when it was announced that the service would be abruptly closing.
Former CNN chief Jeff Zucker was removed from the picture in February when he refused to disclose a relationship with a colleague.
CNN+ was launched March 24, just days after Discovery executives took control. It was in a way a business provocation. Why launch a project that was the brainchild a former leadership team just before new leaders came with their own ideas and a mandate for cost cutting?
Chris Licht, the new chief executive of CNN, described Thursday’s meeting to employees as a new owner who sees a beautiful house but decides he needs an apartment.
In the meeting, the Discovery team stated that it didn’t believe CNN+ would work based on their own experiences with streaming.
J.B. Perrette (head of streaming at the new company), stated that “if we’re moving in a different direction, we can’t let it stop going on one moment more than necessary.”
Licht repeatedly praised his employees for CNN+’s quality. There is no way to know if the product would have failed if it hadn’t had time to settle in.
Rosenbaum suggested that he may have been lured by the offer of a few months free to see if it was worthwhile.
CNN+, however, did not have time.
Adamson stated that “It’s an enormous failure” but not as large as it would have been had it continued and become a black hole of cash.
