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CNN+ To Shut Down In Major $300 Million Blunder | TheRichest.com

CNN's brand-new streaming service, CNN+, is shutting down only a month after its launch. The service reportedly got off to a rocky start, but the announcement that the cable giant would kill it off came as a surprise. The company spent $300 million to launch the service but failed to attract many subscribers.

Chris Licht, the company’s CEO, delivered the news to his team at an all-hands meeting on Thursday. He congratulated the CNN+ team in a memo and announced that the service is set to shut down entirely on April 30th.

He insisted that the closure “is not a reflection of the quality of the talent and content at CNN+” and that “some of which will migrate to CNN’s programming or some of the company’s other networks.”

"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," Discovery's streaming boss J.B. Perrette said in a statement.

He added: "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.”

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CNN planned to spend about $1 billion on the streaming service over the next few years and had already poured as much as $300 million into the ambitious project. Unfortunately, the viewers just didn’t come.

Axios reported that roughly 150,000 people had signed up for the $5.99-a-month service as of this week, while CNBC reported that hardly 10,000 people were using it daily.

The announcement comes amid strenuous times for the cable giant. The network fired Cuomo Primetime host Chris Cuomo last year for trying to help his brother, former New York governor Andrew Cuomo, fight accusations of sexual misconduct. Cuomo promptly sued the network and is currently seeking $125 million in damages.

The network's president stepped down after failing to disclose a workplace relationship, which came to light during the investigation into the Cuomo inquiry

CNN+ customers "will receive prorated refunds of subscription fees," the company said.

NEXT: Chris Cuomo Loses On His $6 Million Paycheck After Being Fired By CNN

Source: CNN, Variety



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