Many Netflix competitors entered the market between November 2019 and today. There are Apple TV + and Disney +, but also HBO Max, Peacock and Quibi services in the US.
Quibi stands out from other streaming services because it focuses on mobile content, can watch videos in portrait orientation and use a short format. Unfortunately, despite all the investments made in introducing this platform, it is far from achieving the expected success.
In an open letter published on Medium, founder Jeffrey Katzenberg and CEO Meg Whitman (and former head of HP) announce the closure of Quibi after just six months of operation.
“We started with the idea of creating the next generation of storytelling and thanks to you we have been able to create and deliver the best version of what we envisioned as a quibi. It is with an incredibly heavy heart that we announce today that we are ending the activity and trying to sell its content and technology assets. “we read in this letter.
It states that Quibi has exhausted all of his options after examining the possibilities of the pivot. Why didn’t it work?
According to the founder and CEO’s letter, this could be because the idea wasn’t “strong” enough to warrant creating a dedicated streaming service. But Quibi could also have fallen victim to bad timing.
Endgame for Quibi, a service that was one of Netflix’s new competitors in the streaming video space
In fact, Quibi, a mobile-optimized platform, was launched in April, at a time when people had to stay at home. But we can also assume that Quibi had problems convincing internet users when they can easily access an almost unlimited number of short videos on free apps such as Facebook, YouTube or TikTok.
In order to stand out from the rest, Quibi relied on its original content. And to get started, the platform also had a substantial budget. Jeffrey Katzenberg and Meg Whitman raised $ 1.75 billion, according to The Verge. On the other hand, advertisers were already ready to embark on this adventure (there is an offer with a reduced price, but it is partly funded by advertising).
Quibi is currently looking for buyers for original content that has already been created for the platform. Otherwise, the company has yet to tell its subscribers when it intends to close its video streaming platform. Quibi also needs to give money back to its shareholders.
Quibi never disclosed how many users it had. Otherwise, we remind you that a new player is entering the streaming market in France: Salto.