by Jacky at WhatsNew2Day
Warner-Discovery’s new leadership has dealt a blow to CNN’s ambitious plans for its new streaming service by pausing marketing spend for the product as they review the company, according to people familiar with the matter.
WarnerMedia had rushed to launch the streaming service CNN Plus ahead of its planned acquisition by Discovery, in what an insider described as a “race to the finish.” The service debuted on March 29, just a week before the $43 billion acquisition was completed.
The move puts CNN at odds with its parent company over a major product launch as Warner-Discovery senior executives are wary of spending hundreds of millions of dollars on a niche, unproven streaming service, people familiar with the matter said. Warner-Discovery wants to build one major streaming product around HBO Max, the larger flagship service.
The decision to suspend marketing spending is the latest change made under David Zaslav, the chief executive of the combined Warner-Discovery group, who replaced nearly all of Warner’s senior management with his own team earlier this month.
Jason Kilar, the former CEO of Warner, authorized CNN’s leadership to proceed this year with an investment of approximately $350 million to build the streaming service, even though he knew he would be leaving the company, according to people known. be with the case.
This left Zaslav to decide what to do with CNN Plus as he worked out a broader strategy for the media giant’s streaming plans, and grappled with a heavy debt load.
Launching a streaming service has been one of…
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