Streaming Fatigue: Following Netflix Stock Crash, CNN+ Subscription Service Folds 31 Days After $300M Launch

Streaming Fatigue: Following Netflix Stock Crash, CNN+ Subscription Service Folds 31 Days After $300M Launch


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CNN+, a new streaming service by TV channel CNN, will be shut down on April 30, just one month after it launched and days after industry leader Netflix saw its stock crash as much as 37 percent after announcing slowing subscriber growth.

CNN’s $300 million streaming service had been hailed as one of the most significant developments in the news service’s history.

The decision to shut it down was made by the CNN’s new owner, Warner Bros. Discovery, which already has a plan to house all its brands under one streaming service that will compete with Netflix.

The newly formed Warner Bros. Discovery became the new owner of CNN after its parent, WarnerMedia, was sold by AT&T.

“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.

“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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Shutting down CNN+ ends the dream to have CNN programming among Discovery’s overall streaming lineup, which will include HBO Max and other assets under the conglomerate.

Stocks in Netflix, the world’s largest movie streaming service company, plummeted up to 37 percent after the company reported worse-than-expected Q1 results on April 21 and shareholders reassessed their commitment to stay long on their holdings.

Netflix also reported losing 200,000 subscribers in contrast to its forecast to add some 2.5 million. This has been blamed on rising competition, slowing demand and cutting off Russian accounts as part of U.S. sanctions over the invasion of Ukraine, The Motley Fool reported.

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These are signs that the streaming market might be suffering from fatigue as consumers, tired of staying at home during the covid-19 pandemic lockdown, opt for outdoor entrainment options. The lockdown demand was also an opportunity for competitors to launch streaming services.

Reed Hastings, co-founder and CEO of Netflix, said that after years of dismissing advertising, the platform would be open to an ad-supported tier, a massive shift in a space where ads have been absent — a breath of fresh air for many subscribers.

Netflix’s willingness to include ads follows a similar decision by Disney, which announced in March it would introduce an ad-supported subscription offering to its Disney+ platform.

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