Warner Bros. Discovery (WBD) is gearing up to transform its flagship streaming platform, Max, by introducing an innovative 24/7 streaming news feature, “CNN Max.” Scheduled for a U.S. launch on September 27, this move reflects WBD’s strategic bid to enhance user engagement.
Following CNN’s brief and unsuccessful streaming endeavor last year, WBD is embarking on an open beta phase for its latest streaming news venture. This initiative underscores the company’s commitment to exploring new product features and original storytelling while actively seeking input from Max subscribers to refine the offering.
“CNN Max” will harness CNN’s established expertise in reporting, its global news reach, and live programming from CNN US and CNN International. Additionally, the service will debut original programming tailored exclusively for Max users, resulting in a comprehensive news experience.
JB Perrette, President and CEO of Global Streaming and Games at Warner Bros. Discovery, emphasized the distinctive nature of “CNN Max.” He highlighted its focus on 24/7 news coverage from CNN, a leading global news organization, and its availability on a scaled streaming service in the U.S., catering to a notably younger and additive audience compared to traditional TV.
The team behind “CNN Max” will feature prominent CNN anchors including Jim Acosta, Rahel Solomon, Amara Walker, Fredricka Whitfield, and Jim Sciutto, alongside a cadre of contributors and correspondents. This seasoned lineup will drive the initiative, ensuring the delivery of real-time, high-quality news content.
Recognizing the pivotal role of live news in driving engagement, analysts like Jessica Reif Ehrlich from Bank of America have emphasized its significance. Ehrlich noted, “News drives engagement. News may not bring subscribers on, but it does drive engagement and keeps people on for a while. Since they own it, having news as part of Max makes perfect sense.”
The integration of live news into the Max platform follows a period of recalibration for CNN, marked by challenges such as low ratings, organizational restructuring with significant layoffs, the unsuccessful launch of CNN+, and the departure of former chief Chris Licht.
Financially, WBD’s performance remains robust, with the second quarter reporting free cash flow exceeding $1.7 billion, more than double the previous year’s figure of $789 million. Encouraged by this momentum, management has set higher targets, aiming for $5 billion in cost savings over the next two years, up from the previous target of $4 billion. Positive trends are also evident in direct-to-consumer losses, which improved to $3 million, a marked improvement from the $558 million loss in the corresponding period the previous year. Furthermore, streaming losses reversed in the first quarter.
As the launch date of “CNN Max” approaches, WBD is poised to reshape the streaming landscape. By capitalizing on the potency of live news to invigorate engagement, the company is set to fortify its presence in the dynamic world of media streaming. The anticipation grows as industry observers and consumers await the unveiling of this groundbreaking addition to the streaming news arena.
Source: Yahoo Finance
