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CNN Streaming Service That Hired Chris Wallace To Face Big Cuts After Disastrous Start: Report

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Chris Wallace left Fox News for what he thought was a stable and well-funded new streaming service from CNN. But it has been a total disaster plagued by low subscription rates and shows no one cares about. 

And the new bosses at CNN have had enough. According to a new report from Axios, they  will make dramatic cuts in investment and projections for the new streaming service as they try to figure out what to do with the flop.

CNN was planning to drop around $1 billion to get the streaming service up and running. Now they will only spend a fraction of that which means cuts across the board and not as many perks for the stars like Wallace.

Axios reports: Investment and projections for CNN+ are expected to be cut dramatically in response to a low adoption rate, two sources tell Axios. By the numbers: The news giant was initially planning to invest around $1 billion in the service over the next four years.

Hundreds of millions of dollars are expected to be cut from that original investment total. To date, around $300 million has been spent on the subscription service.

Fox Business News’ Charles Gasparino reported earlier that the streaming service was in big trouble.

Gasparino said: “Breaking: @CNNplus employees bracing for layoffs possibly as soon as May amid projections of lackluster sales of new streaming channel; CNN employees say new streaming channel could be merged into larger @discoveryplus as early as May unless subscriptions pick up.”

CNN’s rep Matt Dornic said but did nit deny Gasparino’s report: “For the record, we are VERY happy with the launch of CNN+ and are only bracing for a long run of success.

Gasparino responded: “The “well oiled” @CNN PR Flack department won’t respond to my calls for comment but tweets out their response. Nice.”

Gasparino clearly has inside information because he also reported:

“Very awkward moment Monday night during @CNNplus launch party at the swanky Peak restaurant. @morsea gives speech thanking Jeff Zucker, Allison Gollust for creating the new product. Without missing a beat he thanks the dude who fired them @jasonkilar. Crowd stood is shock.”