CNN+ Snooze Is Struggling

Fewer than 10,000 people are using CNN+ on a daily basis two weeks into its existence, according to CNBC citing people familiar with the matter.

The people spoke with CNBC on the condition of anonymity in order to discuss non-public data.

CNN+ launched on March 29. The subscription news streaming service, which charges $5.99 a month or $59.99 annually, only became available on Roku on Monday and still isn’t on Android TV. Still, the paltry number casts doubt on the future of the application following the recently completed combination of Discovery and WarnerMedia into Warner Bros. Discovery.

To put the streaming service’s daily user number in perspective, CNN’s cable network suffered a sharp decline in viewership last year but still rang up an average of 773,000 total viewers a day.

“We continue to be happy with the launch and its progress after only two weeks,” a CNN spokesperson said.

CNN sought to make a huge splash with CNN+, luring big-name talent from rival news networks, such as Kasie Hunt from NBC News and Chris Wallace from Fox News. But here is broad skepticism whether there’s enough demand to sustain a standalone news streaming service as entertainment-first options dominate the landscape. Disney+, for instance, posted more than 10 million subscribers in its first day of existence.

CNN hasn’t released an exact number of CNN+ subscribers. Disney’s ESPN+, which offers sports news programming in addition to live event broadcasts, recently reported 21.3 million subscribers. NBCUniversal’s Peacock, which features news programming, reported 24.5 million monthly active accounts in the U.S., more than 9 million of which were paid members. (ESPN+ charges $6.99 a month, and Peacock offers premium tiers starting at $4.99 a month.)

Warner Bros. Discovery CEO David Zaslav hasn’t commented on CNN+’s long term future. He told CNBC in February he’d need to see how the application performed before deciding next moves.

It’s possible, if not likely, that CNN+ programming will offered as part of a larger bundled offering of HBO Max and Discovery+, according to people familiar with the matter. Both of those services have millions of subscribers.

Details: CNN executives, with help from consulting firm McKinsey, originally expected to bring in around 2 million subscribers in the U.S. in the service's first year and 15-18 million after four years, according to Axios.

They originally planned for the service to break even after four years.

Much of the subscriber opportunity executives see comes from international markets.

Sources say those subscriber expectations will need to be dramatically reduced if investment is cut.

Yes, but: In the U.S. yesterday, CNN launched on Roku, one of the largest smart TV companies in the country — which should help boost subscriber numbers.

Between the lines: Hiring has been frozen at WarnerMedia for the past six weeks, and this has been felt at CNN.