Two weeks after the splashy launch of CNN’s new streaming service CNN+, there are already signs of budget cuts ahead as the service struggles to gain viewership.
An individual with knowledge of the situation told TheWrap that budget trimming is being discussed and will likely affect its non-daily shows at first. While there’s overlap between CNN+ and CNN staffers, layoffs aren’t a consideration at this time, but that will be reevaluated in about three months.
“We continue to be happy with the launch and its progress after only two weeks,” a CNN spokesperson said in a statement provided to TheWrap.
CNN’s initially planned investment of $1 billion in its first four years will likely be cut by the hundreds of millions due to a low adoption rate, Axios reported on Tuesday. The company has spent some $300 million on the subscription service so far, according to the report.
Weeks into its launch on March 29, less than 10,000 people are watching CNN+ daily, according to CNBC. People familiar with the matter told the news outlet that data that isn’t available to the public shows the new streaming service, which costs $5.99 per month or $59.99 per year, is struggling to attract viewers in a competitive streaming market. It’s unclear, however, how many subscribers CNN+ has gotten and the company hasn’t revealed the numbers.
CNN’s cable network is simultaneously seeing a decline in viewership in the last year, but still maintains an average of 773,000 viewers daily. This comes as Discovery is also days into leading the newly combined company with WarnerMedia, Warner Bros. Discovery, in the last week, and the new leadership will likely have ultimate say on the future of CNN+.
CNN+ became available on Roku on Monday. Users can download the the CNN app through the Roku channel store, which will contain both the CNN+ subscription service and access to the current “TV everywhere experience” for pay TV subscriber, the companies said in a statement on Monday. That includes live TV feeds of CNN, CNN International and HLN.
The service boasts live, on-demand interactive programs, which includes “Interview Club,” a program that allows CNN+ subscribers to submit questions to guests featured on CNN+. It also offers live daily shows and a content library of more than 1,000 hours of programming from CNN film teams and its original series.
Sensor Tower recent figures show that the CNN app got about 18,000 installs on the day of launch. During the seven days ending March 22, it had an average of 9,000 installs per day.
Joe Bel Bruno contributed to this report.