CNN+ is facing “big cuts,” according to a report.
Axios reported investments and projections for the streaming service are “expected to be cut dramatically in response to a low adoption rate,” citing two sources.
The outlet noted CNN was initially expecting to invest roughly $1 billion in the streaming service.
According to Axios, it is expected that hundreds of millions of dollars will be cut from the initial investment.
CNBC pointed out less than 10,000 people are using CNN+ on a daily basis.
A CNN spokesperson said, “We continue to be happy with the launch and its progress after only two weeks.”
CNN+ is described as a streaming service that “combines live news coverage, on-demand programming and interactive interviews.”
CNN chief digital officer and head of CNN+ Andrew Morse previously said, “We are going to be the only global video-driven news subscription business.”
Axios explained it remains unclear whether top executives at CNN+, like Morse, “will continue to stay with the company if resources for the service are dramatically reduced or cut.”
Dramatic cuts are expected for CNN+ in response to the subscription service's low adoption rate, two sources tell Axios. https://t.co/hEWxH6V0Lt
— Axios (@axios) April 12, 2022
The report comes just months after CNN Worldwide president Jeff Zucker resigned from his position.
“As part of the investigation into Chris Cuomo’s tenure at CNN, I was asked about a consensual relationship with my closest colleague, someone I have worked with for more than 20 years,” Zucker said in a memo to employees.
He added, “I acknowledged the relationship evolved in recent years. I was required to disclose it when it began but I didn’t. I was wrong. As a result, I am resigning today.”
Later in February, Discover confirmed Chris Licht would become the new head of CNN.
“I am a journalist at heart. While I have enjoyed every minute at ‘The Late Show,’ I am joining CNN because I feel a genuine pull to return to news at such a critical moment in history,” Licht said.
He acknowledged staffers “have a lot of questions.”
Licht continued, “Perhaps the biggest one is how will CNN change? The honest answer is that I don’t know yet. David Zaslav has given me one simple directive: To ensure that CNN remains the global leader in NEWS as part of Warner Bros. Discovery.”