Warner Bros. Discovery has decided to shut down CNN +, the insane streaming service that aimed to bring CNN into the digital future just weeks after its brilliant debut, according to two people familiar with its plans.
The service should stop working on April 30. Andrew Morse, CNN’s chief digital officer and key architect of streaming strategy, will step down, another said.
Chris Licht, the future president of CNN, convened a joint meeting between CNN + employees for lunch on Thursday to share the news.
The shutdown comes just weeks after CNN + launched, with ambitious plans for high costs and rapid expansion. Under former President Jeff Zucker, CNN lured big stars to CNN +, including former Fox News Sunday presenter Chris Wallace, former NPR co-host Odd Cornish and food writer Alison Roman.
But the fate of the service changed dramatically after CNN’s former parent, WarnerMedia, owner of the prestigious HBO powerhouse and legendary Warner Bros. – has completed its merger with Discovery, home of reality TV hits such as “90 Day Fiancé” and the home … improvement gurus Chip and Joanna Gaines. Since the merger ended earlier this month, doubts have been swirling about the future of CNN +, which has been promoted to CNN employees and subscribers as the future of the network.
Discovery executives, including its CEO David Zaslav, are beginning to impose their projects on the newly formed company, called Warner Bros. Discovery by creating a new management team and outlining a new streaming strategy.
Jason Killar, CEO of WarnerMedia, and Ann Sarnoff, CEO of WarnerMedia Studios, have announced they are leaving the company.
According to people familiar with the matter, CNN planned to spend more than $ 1 billion on CNN + over four years, planning a budget for 500 additional employees, including producers, engineers and programmers, and renting an additional floor from its Midtown Manhattan offices for accommodation them.
But the newly formed company has its own corporate priorities, which could run counter to CNN + ‘s high costs. As part of a deal with former WarnerMedia owner AT&T, Discovery executives have agreed to take on $ 55 billion in debt, which executives are now under pressure to pay off. The company also said it would find $ 3 billion in savings between the two companies, which could lead to belt-tightening in some divisions.
In February, while CNN was preparing to launch the streaming service, the network was torn apart by the departure of Mr. Zucker, its longtime president, who resigned after failing to reveal a connection to the network’s marketing chief. Mr. Zucker was the CNN + champion, and his departure meant the loss of the network’s most prominent supporter.
However, the network continued forward. In February, addressing a group of presenters and executives stunned by Mr Zucker’s departure, Mr Killar said the streaming service was an integral part of CNN’s future. And in March, when the merger with Discovery was planned, CNN held a party to launch the new service at Peak, an elegant restaurant and bar at 30 Hudson Yards, not far from the network’s New York offices. During the party, CNN announced that Ted Turner, the founder of CNN, was the first subscriber to the service.
This is an evolving story. Check again for updates.
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