Streaming Service Quibi to Shut Down Six Months After Launch
Quibi, a short-form streaming service that launched in April, has announced its decision to shut down the entertainment platform.
The company, created by Jeffrey Katzenberg and led by Meg Whitman, was able to raise $1.75 billion dollars ahead of its debut this past Spring. The service was charging users around $4.99 per month for a subscription.
Quibi is shutting down six months after the $2 billion video service's debut https://t.co/K6pNG9uo4k
— CBS News (@CBSNews) October 22, 2020
According to CNBC, the platform was originally projected to “have more than 7 million subscribers after its first year, but it only had about 500,000 subscribers as of a few weeks ago.”
In a statement released on Wednesday night, Katzenberg cited timing as a deciding factor in the failure of their service, as the platform was launched amid the ongoing pandemic.
Quibi, the short-form streaming service, announced on Wednesday that it was shutting down just six months after the app became available. https://t.co/5Dnpgk6vbJ
— The New York Times (@nytimes) October 21, 2020
“Quibi is not succeeding. Likely for one of two reasons: because the idea itself wasn’t strong enough to justify a standalone streaming service or because of our timing,” Katzenberg said. “Unfortunately, we will never know but we suspect it’s been a combination of the two. The circumstances of launching during a pandemic is something we could have never imagined but other businesses have faced these unprecedented challenges and have found their way through it. We were not able to do so.”
In the few months since its launch, Quibi has struggled to stay afloat with the influx of Disney+ and Netflix subscriptions during quarantine. In order to bring in a steady audience, the service started offering exclusive content, including Anna Kendrick’s show Dummy.
okay well now that quibi is gone im actually kind of sad
— LA: Yes on J & Vote Nithya, CA: NO on 22/25 (@nitzbluv) October 22, 2020
The platform offered fans a new look at television, dividing their shows into 5 to 10-minute “chapters” that set them apart from other streaming services. With the rising success of TikTok, the company thought its short chapters would hold the interest of subscribers.
The company has yet to reveal when the service will cease its streaming access. To read the original announcement given by The Washington Post, click here.
