Al Jazeera America Fails: Blows $600M, Citing “Economic Landscape in U.S. Media Market”

Al Jazeera America, which went on the air in 2013–and is partly funded by the ruling family of Qatar–announced it is shutting down at the end of April, citing the “economic landscape in the U.S. media market place.”

“Al Jazeera America will cease operation by April 30, 2016,” the network said in a statement, adding that “while Al Jazeera America built a loyal audience across the U.S. and increasingly was recognized as an important new voice in television news, the economic landscape of the media environment has driven its strategic decision to wind down its operations and conclude its service.”

The Qatar based television broadcaster announced in September that it would cut 1,000 jobs worldwide as it looked for cost-cutting savings in the face of falling oil prices and a failed investment strategy. At the time, it was believed only Al Jazeera America, which was launched after the purchase of former U.S. vice president Al Gore’s Current TV station, would be protected from the cuts.

However, despite the network’s statement, the Islamist-sympathizer never gained much traction with the American news consumer, recently publishing a widely discredited story accusing Denver Broncos quarterback Peyton Manning of purchasing and using performance enhancing drugs–or, human growth hormone (HGH).

Despite spending more than $600 million (£390m) launching into the U.S. market in 2013, Al Jazeera’s prime-time ratings only range from 20,000 to 30,000 viewers, according to Nielsen data. Upon taking over the network in May 2015, Al Anstey, Al Jazeera America’s chief executive downplayed the network’s ratings woes, saying it would “take time to build viewership.”

“I know the closure of AJAM will be a massive disappointment for everyone here who has worked tirelessly for our long-term future,” Anstey reportedly wrote in a memo to staffers. “The decision that has been made is in no way because AJAM has done anything but a great job.”

The network also said it will be shifting its resources and focus on digital content in the U.S. as it shuts down its television news channel.