CNN+, which was only launched a month ago, will be shut down by Warner Bros. Discovery on April 30. Despite CNN executives hailing it as the “most momentous launch” since the network’s founding in 1980. Customers who subscribe to CNN+, on the other hand, will receive “prorated returns of membership payments.”
“In a complex streaming market, consumers want simplicity and an all-in service that provides a better experience and more value than standalone offerings, as well as a more sustainable business model to drive our future investments in great journalism and storytelling,” said J.B. Perrette, Discovery’s global streaming president.
In addition, CNN CEO Christ Licht stated in an internal memo that “over the next 90 days, all CNN+ workers would continue to be paid and receive benefits to explore possibilities at CNN, CNN Digital, and elsewhere in the Warner Bros. Discovery family.”
Employees who are not absorbed elsewhere in the organization must be paid severance for at least six months. Despite this, Andrew Morse, executive vice president and head of CNN+, is expected to leave the firm following the transition period. Despite the fact that Licht stated that he wanted Morse to stay, this is not the case.
CNN had intended to invest $1 billion in CNN+ and had already spent at least $100 million on the service. However, Warner Bros. Discovery CEO David Zaslav had different ideas, aiming to bring all of the company’s properties together under one streaming service.
“That’s where we go,” Zaslav said in an interview with Oprah Winfrey a few days after the merger.