04-21-2022, 05:31 PM
According to an earlier Axios article foreshadowing this shutdown, there’s a pretty hot power struggle going on between CNN and Warners Discovery, that includes executive shuffling in favor of Warner personnel.
Warners Discovery didn’t want CNN+ to launch at all.
”Discovery executives are frustrated that the service launched. If CNN held off launching CNN+ until after the merger, it would have been easier to pivot the company's efforts towards something better aligned with Discovery's goals.”
CNN, however see things very differently.
”Inside CNN, executives think the launch has been successful…”
“… Executives are frustrated that new leadership is moving quickly to dismantle what they see as an eventual lifeline for the cable network.
Warner’s is working with a very specific vision of the future, much of it focused around HBO Max.
Warners Discovery didn’t want CNN+ to launch at all.
”Discovery executives are frustrated that the service launched. If CNN held off launching CNN+ until after the merger, it would have been easier to pivot the company's efforts towards something better aligned with Discovery's goals.”
CNN, however see things very differently.
”Inside CNN, executives think the launch has been successful…”
“… Executives are frustrated that new leadership is moving quickly to dismantle what they see as an eventual lifeline for the cable network.
- CNN's original plan was for CNN+ to become profitable in four years by investing $1 billion into the service.
A profitable service would've diversified CNN's revenue long-term around a digital asset outside of its website, increasing its valuation and potential, executives believe….
- Executives believe that if the service wasn't being knee-capped, its growth rate would've rivaled other print news outlets like The Wall Street Journal and The Washington Post — which have 2.9 million and 2.7 million digital subscribers, respectively.
Warner’s is working with a very specific vision of the future, much of it focused around HBO Max.
- ”Discovery's experience launching niche subscriptions services, like GolfTV and its Food Network Kitchen App, has informed its strategy to focus on one scaled general entertainment offering around HBO Max, instead of more niche services that have to compete with big apps for subscriber cash.
- Warner Bros. Discovery executives see an opportunity to possibly include some CNN+ content on CNN's app and make that video available for free and supported by ads, according to one source. Other CNN+ programming could live within HBO Max.
- It sees potential in leveraging the already massive reach of CNN.com and CNN's main app to drive its digital growth long-term, as opposed to another subscription outside of linear TV.
- Discovery executives are focused mostly on returning CNN to its journalistic core, a point Warner Bros. Discovery CEO David Zaslav reiterated in a town hall last week. That includes less of a focus on primetime perspective programming, and more of a focus on hard, breaking news. CNN+ features an array of soft news content, which doesn't align with Discovery's broader vision for CNN.”