Short video streaming service Quibi shuts down after just SIX MONTHS in spectacular flop for the $1.75B startup
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www.theinformation.com
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Quibi, the short video streaming service launched with great fanfare in April, is shutting down just six months later, according to multiple reports.
Quibi founder and former Disney CEO Jeffrey Katzenberg told investors in a call on Wednesday that the entertainment startup that raised $1.75 billion in capital is shutting itself down, the Wall Street Journal reported.
The company, which had pitched a paid subscription service for short, 10 minute videos produced at a cost of $100,000 per minute, failed to gain traction despite a massive promotional push.
The name 'Quibi' was an abbreviation of 'quick bite,' highlighting its video content designed to be viewed on the go from a mobile device.
In a last ditch effort to save the business, Katzenberg had tried to sell its catalog of programming to several companies including to NBCUniversal and Facebook - both of which declined, according to The Information.
Katzenberg 'has told people in the industry that he may have to shut down the company' if a buyer could not be found quickly, the news site said, citing a person who spoke to him.
Quibi did not immediately respond to multiple requests for comment from DailyMail.com on Wednesday.
Quibi opened for business in the United States and Canada six months ago as the effects of the novel coronavirus pandemic began to set in.
Its goal was to shake up the video content industry by providing 10-minute original Hollywood-quality programs delivered to smartphones and mobile devices.
Thanks to Kazenberg's reputation and the billions of dollars promised, the project won over big-name movie and TV personalities to produce films and series, including the likes of Steven Spielberg, Guillermo del Toro, Jennifer Lopez and Reese Witherspoon.
According to The Information, Katzenberg contacted Eddy Cue, an Apple vice president and WarnerMedia CEO Jason Kilar, as well as Facebook and NBCUniversal. There was no interest, the site reported.
Quibi bet big, with 50 programs available from day one.
The company was paying $100,000 a minute for feature films -- a rate comparable to big productions by Netflix, Amazon, HBO Max or Disney+, Quibi CEO Meg Whitman has said.
Quibi also wanted to offer daily news reports, sports programs and entertainment shows, content difficult to produce while under pandemic lockdown.
Seeking to attract more customers, Quibi increased its trial offer from two weeks to 90 days, while the subscription price - $5 per month with advertising or $8 without -- is comparable to the Disney+ service.
However, the strategy does not seem to have worked.
Quibi had reportedly been counting on several million subscribers by April 2021, but six months after its launch it has only a few hundred thousand, including those who have the service for free via their operator.
- Quibi informed investors of imminent shutdown on Wednesday, sources said
- Katzenberg reportedly tried to sell Quibi catalog to Apple, Facebook and NBCU
- Quibi opened for business in the United States and Canada just six months ago
- Service paid $100,000 a minute to produce fresh content for its platform
- Offered TV-style series with 10-minute episodes for viewing on mobile phones
- But failed to attract the millions of subscribers it had projected upon launch
- Stars Steven Spielberg, Guillermo del Toro, Jennifer Lopez and Reese Witherspoon were among those who signed up to produce shows for Quibi
Short video streaming service Quibi shuts down after just SIX MONTHS
Quibi founder Jeffrey Katzenberg told investors in a call on Wednesday that the entertainment startup that raised $1.75 billion in capital is shutting itself down, according to multiple reports.
Katzenberg May Shut Down Quibi as Options Run Short
Jeffrey Katzenberg may be nearing the end of the road with his mobile video streaming service Quibi. He recently tried to sell its catalog of programming to companies such as NBCUniversal and Facebook. Bothpassed, according to several people familiar with the matter. Meanwhile, Katzenberg has ...
www.theinformation.com
Quibi Is Shutting Down Barely Six Months After Going Live
Founder Jeffrey Katzenberg and Chief Executive Meg Whitman decided to shut down the company in an effort to return as much capital to investors as possible instead of trying to prolong the life of the company and risk losing more money.
www.wsj.com
Quibi, the short video streaming service launched with great fanfare in April, is shutting down just six months later, according to multiple reports.
Quibi founder and former Disney CEO Jeffrey Katzenberg told investors in a call on Wednesday that the entertainment startup that raised $1.75 billion in capital is shutting itself down, the Wall Street Journal reported.
The company, which had pitched a paid subscription service for short, 10 minute videos produced at a cost of $100,000 per minute, failed to gain traction despite a massive promotional push.
The name 'Quibi' was an abbreviation of 'quick bite,' highlighting its video content designed to be viewed on the go from a mobile device.
In a last ditch effort to save the business, Katzenberg had tried to sell its catalog of programming to several companies including to NBCUniversal and Facebook - both of which declined, according to The Information.
Katzenberg 'has told people in the industry that he may have to shut down the company' if a buyer could not be found quickly, the news site said, citing a person who spoke to him.
Quibi did not immediately respond to multiple requests for comment from DailyMail.com on Wednesday.
Quibi opened for business in the United States and Canada six months ago as the effects of the novel coronavirus pandemic began to set in.
Its goal was to shake up the video content industry by providing 10-minute original Hollywood-quality programs delivered to smartphones and mobile devices.
Thanks to Kazenberg's reputation and the billions of dollars promised, the project won over big-name movie and TV personalities to produce films and series, including the likes of Steven Spielberg, Guillermo del Toro, Jennifer Lopez and Reese Witherspoon.
According to The Information, Katzenberg contacted Eddy Cue, an Apple vice president and WarnerMedia CEO Jason Kilar, as well as Facebook and NBCUniversal. There was no interest, the site reported.
Quibi bet big, with 50 programs available from day one.
The company was paying $100,000 a minute for feature films -- a rate comparable to big productions by Netflix, Amazon, HBO Max or Disney+, Quibi CEO Meg Whitman has said.
Quibi also wanted to offer daily news reports, sports programs and entertainment shows, content difficult to produce while under pandemic lockdown.
Seeking to attract more customers, Quibi increased its trial offer from two weeks to 90 days, while the subscription price - $5 per month with advertising or $8 without -- is comparable to the Disney+ service.
However, the strategy does not seem to have worked.
Quibi had reportedly been counting on several million subscribers by April 2021, but six months after its launch it has only a few hundred thousand, including those who have the service for free via their operator.
