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from the Failed-to-reach-a-top...Quibile? dept.
Plagued with growth issues, Quibi, a short-form mobile-native video platform, is shutting down, according to multiple reports. The startup, co-founded by Jeffrey Katzenberg and Meg Whitman, had raised nearly $2 billion in its lifetime as a private company. Quibi did not respond to requests for comment from TechCrunch.
The company's prolific fundraising efforts spanned prominent institutions in private equity, venture capital and Hollywood, all betting on Katzenberg's ability to deliver another hit. The startup's backers included Alibaba, Madrone Capital Partners, Goldman Sachs and JPMorgan, as well as Disney, Sony Pictures, Viacom, WarnerMedia and MGM, among others. The Information reports that Quibi will have $350 million left to return to shareholders.
Their pitch was highly produced bite-sized content, packed with Hollywood star power, and designed to be "mobile-first" entertainment. For the YouTubes and Snaps of the world, producing mainstream content on a shoestring budget, Quibi wanted to be an HBO for smartphones. Investors and pundits questioned the firm's ability to monetize this vision, and it became clear soon after launch that the company had miscalculated.
[...] Admitting that the launch hadn't gone as planned, Katzenberg blamed the coronavirus for the streaming app's challenges.
One problem with finding a buyer: Quibi doesn't even own most of its original "content":
Actually, Quibi doesn't own any of the big-budget premium content for which it has shelled out upwards of $100,000 per minute. The company has seven-year licenses on its short-form series; after two years, content owners have the right to assemble the shows and distribute them elsewhere.
Also at The Verge, Business Insider, Ars Technica, and MarketWatch.
Previously: Meg Whitman-Run Streaming Service "Quibi" Launches, Reception Mixed
The Fall of Quibi: How Did a Starry $1.75bn Netflix Rival Crash So Fast?
Related: Fox Could Buy Tubi While NBCUniversal Eyes Vudu
(Score: 5, Insightful) by EJ on Thursday October 22 2020, @05:44PM (3 children)
This story has brought so much joy to me in an otherwise very sad year.
Stupid ideas should be stomped, doused in accelerant, and killed with fire.
(Score: 3, Informative) by VLM on Thursday October 22 2020, @05:53PM (2 children)
Ironically, people flock to view that kind of viral video online; just not on the quibi platform (ziiiiiiinnnggg)
(Score: 3, Informative) by EJ on Thursday October 22 2020, @06:28PM (1 child)
Quibi tried to normalize the use of vertical video. For that reason alone, everyone involved in the service should be incarcerated.
(Score: 3, Insightful) by FatPhil on Friday October 23 2020, @12:47AM
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves