Now that CNN has made the decision to shut down its new baby CNN Plus less than a month after it went live, you may be wondering what went wrong. A report Ka Axios has a chart showing the streaming service is far from reaching its end-of-year viewing target, and would burn up to $ 400 million by 2022 alone to try to get there.
CNN predicted that the service would have two million subscribers by the end of the year, but almost two weeks later, they realized they had only managed to attract 150,000 people. At first, this did not seem too bad, but considering services like Disney Plus had 10 million customers in its first day – and that Quibi, which was similarly shut down early in its life, saw 910,000 people recorded in the early days – This was not much for CNN.
Running is not for everyone, but CNN is preparing to make more money. CNN Plus was expected to make a profit of $ 800 million by 2030, a cash cow larger than today’s cable network (making up about $ 500 million in annual profits, according to Axios).
How? By 2030, CNN is projected to have 30 million subscribers who either pay $ 5.99 a month or $ 59.99 a year (or $ 2.99 a month if they already have subscribers), expecting an increase in subscribers. they will eventually move on to making money instead of just being. spending. By 2024, CNN thought it would lose only $ 200 million, and break even by 2025. There, the company expected to make $ 200 million by 2026 before slowly crawling to $ 800 million of its ten-year target by 2030. .
We do not know the exact reason why CNN pulled the strings, but when we see how CNN Plus had only 150,000 subscribers and apparently needed to burn $ 1 billion in revenue of $ 800 million a year, it is not hard to imagine. see what’s in it. share. Instead, CNN came out early.