Al Jazeera America – LOGO
Less than three years after its start. Al Jazeera America is going to be phased out as a cable news operation on the 30th of April, 2016.
Such decision was driven by the fact that their business model was not sustainable in light of the economic challenges in the U.S. media marketplace as the news net’s CEO al Anstey said.
The shutting down was confirmed on Wednesday, January 13, 2016 by Al Jazeera’s communications chief on Twitter.
Plus, it poorly averages 30,000 viewers with prime-time ratings. The profits were even very critical. Although, the channel is accessible to millions of viewers.
Anstey added:
“ I know the closure of AJAM will be a massive disappointment for everyone here who has worked tirelessly for our long-term future “.
But employers and staff will keep receiving salaries and benefits till April.
Moreover, and since the beginning, Al Jazeera America was facing problems regarding the ratings and internal strife.
Many familiar names like John Seigenthaler, Ali Velshi, Antonio Mora and Joie Chen were hired to be the faces of the U.S. network. Still, the channel couldn’t improve.
Additinally, last year two former employees filed lawsuits against the company with charges of anti-Semitism and sexism in the newsroom.
Who funded AJAM?
Qatar’s government, world’s richest oil’s country, bought Al Gore’s Current TV paying $500 million to purchase it and its cable clearance in the U.S.
Yet, we are facing a serious issue concerning oil prices. And, Its drop resulted in the closure of AJAM, CNN reported. The reason behind that according to IMF is, the government of Qatar gets about 90% of its budget from the energy sector.
One of the most competing news networks are in 90 million homes approximately. However, AJAM channel is now in 60 million homes facing difficulties in attracting the audience.
Al Jazeera said it will now:
“expand its existing international digital services to broaden its multi-platform presence in the United States.”
Why it failed?
- Low ratings viewers.
- Challenged by strong competitions.
- Operational problems.
- Lack of advertisers and profits.
- Faced a rush of lawsuits by former employee.
- Challenges of full cable carriage; some of its conveyance contracts are due to cease soon, and distributors are thirsty to stop carrying low-rated channels.
How social media reacted?
Some were critising the channel again, others sympathized with what happened. Mentionning the sad fact that hundreds of employees will lose their jobs when the network closes.
Also, once the news spread, #AlJazeeraAmerica hashtag was trending quickly all over twitter.
https://twitter.com/davidkenner/status/687353539123888128
https://twitter.com/masterspalette/status/687475266126352384
https://twitter.com/imisthebowlbros/status/687477361932132352
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