According to a report from CNBC, the company had already invested hundreds of millions of dollars into the project. The New York Times notes CNN had plans to spend more than $1 billion over the next four years to hire more employees and rent out an additional floor of office space in Manhattan to support the venture. Andrew Morse, who led the push at CNN, is also stepping down and will be replaced by Alex MacCallum, who currently serves as CNN+ general manager.
Incoming CNN President Chris Licht said in a memo that the decision was incredibly difficult, but was the right one for the long-term success of CNN. Subscribers will receive prorated refunds on membership fees already paid. Last week, CNBC reported that fewer than 10,000 people were watching CNN+ on a daily basis. Back in 2017, CNN canceled its daily Snapchat newscast feature after just four months. Quibi, the short-lived streaming service from Jeffrey Katzenberg and Meg Whitman, managed to hang on for seven months before the decision was made to pull the plug. A memo from Licht seen by CNBC said CNN+ employees will be paid and receive benefits for the next 90 days in order to explore other opportunities within the company. After that, anyone who leaves will receive a minimum of six months’ severance. Image credit stevosdisposable
