Streaming Wars -- First Huge Casualty, It Won't Be The Last -- CNN+ -- April 21, 2022

Has it been less than a month? Amazingly, it's been less than two weeks.

CNN and CNN+ have a new boss. Effective April 11, 2022.

There was talk about major changes when CNN / CNN+ moved to Warner Bros Discovery, but I don't think anyone really thought CNN+ would be "let go." But there it is, in The New York Times. 

The shutdown is a stunning and ignominious end to an operation into which CNN had sunk tens of millions of dollars, from an aggressive nationwide marketing campaign to adding hundreds of new employees to hiring big, high-priced media stars, including the former “Fox News Sunday” anchor Chris Wallace and the former NPR co-host Audie Cornish.  

But the service’s fortunes changed abruptly after CNN’s former parent, WarnerMedia — owner of the prestige TV powerhouse HBO and the storied Warner Bros. film studio — completed its merger with Discovery, home to reality TV hits like “90 Day Fiancé” and the home-improvement gurus Chip and Joanna Gaines. Since the merger closed earlier this month, doubts have swirled over the future of CNN+, which was promoted to CNN employees and subscribers as the future of the network.

CNN had planned to spend more than $1 billion on CNN+ over four years, according to people familiar with the matter, budgeting for 500 additional employees, including producers, engineers and programmers, and renting out an additional floor of its offices in Midtown Manhattan to accommodate them. But the newly formed company has its own corporate priorities that could conflict with the big spending of CNN+. 

As part of its deal with former WarnerMedia owner AT&T, Discovery executives agreed to assume $55 billion in debt, which executives are now under pressure to repay. The company also said it would find $3 billion in savings between the two companies, which could result in belt tightening at some divisions.

This, of course, also raises the question about the future or "direction" of CNN without the plus. 

"Streaming Wars" are tracked here.