Sources: two weeks after the launch of CNN+, the premium streaming service has garnered under 10K DAUs, amid reports that CNN has spent ~$300M on the effort
- Fewer than 10,000 people are using CNN+ on a daily basis two weeks into its existence, sources said.
CNBCAlex Sherman
Context & Ripple Effects
CNN had already pursued streaming expansion through a $40M investment in Great Big Story, including plans for a 24-hour service distributed through Sling TV and other outlets. The weak early CNN+ usage therefore matters as a test of whether CNN could support a distinct paid destination rather than rely on third-party distribution.
CNN+ starts with an audience of fewer than 10,000 daily active users, leaving CNN's roughly $300M effort without the early daily engagement needed to validate its premium-service strategy.
CNN faces immediate pressure to reassess the programming, marketing, and distribution assumptions behind CNN+ rather than treat its launch as a conventional scale-up period.
Second-order effects
Low engagement makes a standalone CNN subscription product harder to sustain relative to distribution through existing streaming platforms, an approach CNN had previously pursued with Great Big Story.
The later shutdown shows the weak launch constrained CNN+'s room to build an independent audience, while WBD's CNN Max plan redirected the brand toward a larger bundled service.
Third-order effects
CNN's sequence points to a news-streaming model in which live feeds and original programming are more likely to be packaged within broad entertainment bundles than sold as standalone destinations.
If bundling continues to be the viable route for news video, the strategic contest shifts from launching separate apps to securing prominent placement and programming differentiation inside larger platforms.
The trend: Premium news streaming is moving from standalone subscription bets toward bundled distribution within broader streaming platforms.
It's crazy that stories about CNN+ don't mention the surprising fact that a CNN+ subscription doesn't let you watch CNN. It's all bonus content for the CNN superfans! https://twitter.com/...
My Twitter account has more daily active viewers than CNN+ and didn't cost me $300 million. The perils of copycat business strategy without understanding your customer base or market. https://twitter.com/...
Supply kills value. The number of places to acquire news for free is, well, big. What is scarce are analysis, good writing, humor and entertainment. https://www.cnbc.com/...
Where are they spending the marketing $? I haven't seen many ads for it. But also, I feel like maybe they just overestimated the demand for a standalone CNN streaming service? https://www.axios.com/... https://twitter.com/...
CNN+, which was a big bet for WarnerMedia ahead of its merger with Discovery, is struggling to attract viewers. It is drawing fewer than 10,000 daily users, sources tell CNBC. https://www.cnbc.com/...
Wondering how @CNNplus investment factors into $WBD initial forecasts — maybe a write-down to clean up this mess quickly and move on is best? https://twitter.com/...
@Techmeme @sherman4949 McKinsey's projected numbers for this venture were absolutely unrealistic and the folks who okayed those numbers should be out of their jobs
Since when does CNBC calling out CNN? This is why I trust capitalism. CNBC's OTT Peacock is kicking CNN+ tail. Peacock has 9 million PAID customer & CNN+ only 10k. It's that simple. CNBC is dominating CNN! Good for them. https://twitter.com/...
Is there a single meaningful instance where McKinsey has been paid absurd amounts of money by a media company and not helped engineer a total disaster? Why do they keep getting enlisted by media execs? https://twitter.com/...
CNN spending $300M to create a streaming service that has less than 10,000 daily users is tragic. Netflix & Disney+ envy is going to hurt a lot of broadcasters. Going from making money licensing content to being a service provider is a very different biz https://www.cnbc.com/...