Quibi is shutting down 6 months after its launch. Quibi is a streaming video platform focused on mobile devices. The company was able to raise more than $1.75 billion with private investment, but even that amount was not enough to face a problem that took all of humanity by surprise: the coronavirus pandemic.
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The report indicates that COVID-19 affected Quibi’s operation. The reason? Because it was a service that depended on mobile devices, but with millions of people locked up in their homes to avoid infection, it gradually complicated the emergence of new content. This would be devastating for any platform.
Quibi is shutting down, unfortunately, they invested millions in creating studios to produce original content, but the strategy did not bear fruit. Jeffrey Katzenberg, the co-founder of Quibi, contacted giants such as Apple, Facebook and WarnerMedia to negotiate the possible acquisition of the service. The problem is that no one showed any interest in buying it, not even in signing a partnership to take advantage of the series they had produced. It didn’t take long for the ship to sink.
Quibi’s start was exceptional. During its first week, there were 1.7 million registered downloads in iOS and Android. However, the biggest obstacle for the platform came three months later, when the free trial period was over. It should not be forgotten that the service was priced at $4.99 per month (with ads) or $7.99 (without ads) after the free period ends. As you might expect, everything fell apart. Unfortunately now, Quibi is shutting down.
According to the data shared by Quibi itself, 90% of its users abandoned the service at the end of the trial period. Out of 910,000 people who registered in April, only 72,000 opened their wallets to continue paying the subscription. Its business model, accompanied by the huge investment needed to produce original content, could not be profitable. It is clear that competing against Netflix, Disney+, Amazon Prime Video and Apple TV+ is not an easy task. Unfortunately, Quibi is shutting down 6 months after its launch.
