Warner Bros. Discovery (WBD) is betting on live news to increase engagement on its flagship streaming platform Max, announcing a new 24/7 streaming news offering — "CNN Max" — which will launch in the US on Sept. 27.
The offering, which comes after CNN's first foray into streaming failed last year after just one month, will be part of an open beta for news as the platform experiments with new product features and original storytelling, the company said. Max subscribers will be able to provide feedback on the service.
"CNN Max will leverage CNN’s reporting excellence, global news-gathering, and live programming from CNN US, CNN International, and feature original programming built specifically for Max," the company said in a press release.
"CNN Max is differentiated by having 24/7 news at its core from CNN, the leading global news organization, and being available on a scaled streaming service in the U.S., which has a significantly younger and additive audience compared to traditional TV," JB Perrette, Warner Bros. Discovery president and CEO of global streaming and games, said in the release.
CNN anchors Jim Acosta, Rahel Solomon, Amara Walker, Fredricka Whitfield, and Jim Sciutto are among the journalists and personalities leading the effort, along with other contributors and correspondents.
Analysts have long viewed live news as a core differentiator as churn, or paying users abandoning their streaming plans, remains a critical problem for streaming services.
"News drives engagement," Bank of America analyst Jessica Reif Ehrlich previously told Yahoo Finance. "News may not bring subscribers on, but it it does drive engagement and keeps people on for a while. Since they own it, having news as part of Max makes perfect sense."
Warner Bros. Discovery has been rethinking the future of CNN as the network grapples with historically low ratings, mass layoffs, a failed foray into streaming with CNN+, and, most recently, the firing of former chief Chris Licht.
Other headwinds facing CNN have included executive shake-ups, box office bombs, and company-wide layoffs since the completion of its $43 billion merger in April 2022.
Earlier this month, WBD reported over $1.7 billion in free cash flow in the second quarter, more than double the $789 million seen in the year-ago period.
Management said it is now targeting $5 billion in cost savings over the next two years, up from its previous target of $4 billion. Direct-to-consumer losses also improved to $3 million — significantly above the $558 million loss in the year-ago period. Streaming losses reversed in the first quarter.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at [email protected].
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