CNN is seeking streaming distributors for its new streaming service, CNN+, ahead of its launch later this month.
Recent reports highlight that CNN+ has signed agreements with Roku and Apple; however, the company hopes to close deals with more distributors before the launch, Andrew Morse, the CNN Digital Chief, said in an interview. Furthermore, CNN+ had previously announced a deal they had secured with Comcast.
Amazon.com, one of the world’s largest distributors, was not mentioned during the interview.
It can be said that CNN owner WarnerMedia is aware of the vitality of any new streaming service to secure full distribution. For example, HBO Max, the company’s mainstreaming service, debuted without a distribution deal with Amazon, which had dire results on the customer growth front.
According to CNN plans, CNN+ will launch on 29 March with an array of topical shows hosted by established on-air talent and newcomers. The CNN Digital Chief mentioned that CNN+ had been CNN’s most expensive new initiative since the network’s launch. The decision to create CNN+ follows a decline in linear numbers of which the channel had to react by broadening audience reach through an online format.
“We are very confident about our move to online platforms. Although our plans and subscriber target may seem ambitious, they are surely achievable. Moreover, we expect the new streaming service to be profitable within the first year of service,” Morse added.
Analysts have questioned the CNN move, stressing that CNN+ may not be the greatest investment as news are available for free. NBC and CBS offer free news streaming services. Additionally, there exist unlimited access to information via YouTube.
CNN argued that their position is unique as they do not compete with mainstream entertainment services, adding that none of its direct rivals in news broadcasting has the same level of resources. “There can never be another news organisation like CNN on the planet”, Morse said.
WarnerMedia and Discovery merger looms over the launch of CNN+ as the deal closure is approaching in the coming months. The two companies will now own three streaming services, namely CNN+, Discovery+, and HBOMax, which offer related programming.
