On March 29, 2022, CNN celebrated the long-awaited launch of its online streaming service, called CNN+, promising viewers high-quality content provided by some of the media's biggest names. Yet, the platform is due to be shut down by the end of this April.
After Losing Subscribers for the First Time, Netflix to Launch Lower-Priced Service With AdsThe decision to pull the plug on CNN's online streaming service came as a shock to both workers on the platform and viewers who have just started showing interest in CNN+, as it followed news of a huge acquisition deal by Discovery, buying Warner Media, CNN, HBO Max, for $43 billion.
Netflix’s contraction and CNN+ shutting down probably signal that we are leaving peak content and the market can’t handle (m)any more paid streamers.
— Andrew Yang?⬆️?? (@AndrewYang) April 23, 2022
Just when CNN+ was reporting 10,000 viewers a day, after bringing some famous content creators, such as Fox News's Chris Wallace, American food writer Alison Roman, and American actress Eva Longoria, chairman and CEO of CNN Worldwide Chris Licht announced the closing of the new service last Thursday, promising full refund for subscribers to the $6 monthly plan.
However, the decision has prompted many questions over the motive behind the early closure of the service, whose launch cost CNN around $250 million, especially since it could result in laying off more than 400 workers who were hired for the service alone.
The new management of the CNN network which took the decision might be paving the way to merge shows offered by CNN+ and platforms already owned by the new parent company, including HBO Max and Discovery+.
Yet, the lack of expectations for the newly-established service could hint at a growing crisis in the streaming world.
CNN+, Disney, Netflix are all collapsing, while indepedent media thrives and grows.
The revolution won't be televised and it won't be on YouTube either. Viewers are going somewhere...— Chris Pavlovski (@chrispavlovski) April 21, 2022
Shutting CNN+ down comes at a time streaming giant Netflix is reporting a drop in subscribers numbers for the first time in a decade, losing 203,000 paid viewers.
Looking for the reasons behind this surprising drop, Netflix explained that users share accounts on multiple devices and in different locations, in addition to the changes in post-pandemic world interests and economic inflation. Especially the fact that lockdowns have been lifted in most world countries and movie theaters are re-opened for film enthusiasts who needed streaming platforms for months between 2020 and 2022.
As a result, Netflix is opting for new a lower-priced service with ads, so it appeals to more viewers and helps the service see growing interest again.
Source: Just Watch
According to a report by Forbes, Netflix's losses can also be seen in the context of monthly subscription fees, considering it is more expensive than its competitors, despite high competition in terms of shows streaming by each platform.
This could be true, given the growing revenue seen by competitors, such as Apple TV+'s tiny growth throughout 2021.
While there is no doubt that streaming services are here to stay, it might be time for them to reconsider their policies and adjust them to accommodate the rapidly changing world around.
Written by Riham Darwish
