CNN+ to slash investment amid low traction - Axios (updated)
Anna Moneymaker/Getty Images News


It's only been two weeks since CNN launched CNN+, the venerable cable news network's subscription streaming offering, but low uptake so far means that investments and projections are about to get cut "dramatically," according to a report from Axios.

CNN+ hustled toward a March launch even before former owner AT&T (T) was to spin off its WarnerMedia interest into a merger with Discovery. That merger, creating the new Warner Bros. Discovery (WBD
-1.3%), was just completed on Friday.
The news service launched at a cost of $5.99 a month, but those signing up in this first month can preserve a lifetime rate of $2.99 a month. And new CNN boss Chris Licht, the replacement for former chief Jeff Zucker, isn't even set to take the helm until May 1.
CNN has spent about $300 million on CNN+ so far, with much of that on marketing, and it was going to invest $1 billion in the service over the coming four years. At that time, CNN projected CNN+ to reach a breakeven point. But, Axios said CNN is set to cut its investment in streaming offering by "hundreds of millions of dollars."
Among the issues being cited for CNN cutting its investment plans are an internal "sense of confusion" why the CNN+ launch felt rushed, instead of holding back until after the Discovery merger took place.
One thing that may help lackluster subscriptions: CNN+ launched yesterday on key streaming gatekeeper Roku.
In late February, WBD (NASDAQ:WBD) CEO David Zaslav tapped Licht, formerly of CBS, to take the helm as Zucker exited CNN.

Updated 12:40 p.m.: CNBC reports sources have said that fewer than 10,000 people are daily users of CNN+ so far.