Six months after the launch, the video service Quibi has already stopped. The American company raised 1.75 billion dollars (nearly 1.5 billion euros) from investors to compete with Netflix, Disney + and Amazon Prime.
Stars such as Steven Spielberg, Jennifer Lopez, Idris Elba and Reese Witherspoon were attracted to this, who made series of up to ten minutes per episode. However, these ‘quick bites’ (hence the title) did not attract enough paying visitors.
According to founders Jeffrey Katzenberg (formerly of Disney and Dreamworks) and Meg Whitman (former CEO Hewlett-Packard), the failure of the service is largely due to the corona crisis. Quibi was launched as a service for people who are on their way to work or school, and therefore mainly watch short videos on their smartphone or tablet. The pandemic means that many people are at home and watching TV is more attractive. For a long time, the Quibi app was not suitable for watching on TV screens.
Quibi presented itself at the beginning of this year:
Another problem is that viewers don’t seem to be paying $ 5 a month for short videos, analyst Michael Goodman tells The New York Times: “Consumers like short videos, for example about sports, news or beauty topics. premium ‘market. That’s not a new lesson, but apparently it has to be learned over and over again. “
Quibi had some success at the Emmy Awards this year: actors Laurence Fishburne and Jasmine Cephas Jones won the TV award for their roles in the series Free Rayshawn. The series Most Dangerous Game and Reno 911 were nominated for the TV awards.
Quibi itself does not release data on the number of subscribers, but according to research firm Sensor Tower, the app has been downloaded almost 10 million times. Some of those users have only used the free trial period. In comparison, Disney + has about 60 million subscribers worldwide, Netflix almost 200 million.
Of the 1.75 billion in money from investors, about 350 million is left, according to the company, which goes back to the lenders. An attempt was made to sell the service to another party, but no buyers were interested.