Quibi streaming service to shut down

Quibi streaming service to shut down

Quibi co-founder Jeffrey Katzenberg said earlier this year that the people using his product might be "in between home-schooling or doing chores around the house, or answering emails and being on video chats". Katzenberg called Quibi's launch "not close to what we wanted", and the service ended up with an estimated 400,000 to 500,000 subscribers. The Wall Street Journal reported in June that the service expected to hit only 2 million subscribers by the end of the year, far short of its goal of more than 7 million. The pandemic put Quibi in an unfavourable position, but a conversion rate of less than 10% from its free trial indicated that users were simply not interested in the platform and its content and that the coronavirus was being used as something of a smokescreen.

This image released by Quibi shows Tye Sheridan in a scene from "Wireless" which follows a college student navigating the snowy Colorado mountains.

Katzenberg hinted at that cause in the statement about Quibi's shutdown, which also noted the service has more than 100 original series and won two Creative Arts Emmy Awards for the series #FreeRayshawn.

The company is now looking to find buyers for programming and assets, Katzenberg and Whitman say in the letter. We challenged engineers to build a mobile platform that enabled a new form of storytelling - and they delivered a groundbreaking and delightful service. Our failure was not for lack of trying; we've considered and exhausted every option available to us.

Every show, nicknamed a "Quibi", was no longer than 10 minutes and was created to be watched vertically on a smartphone - the same way we consume thousands of bite-size Facebook and Instagram videos.

Perhaps in another time, in another world, Quibi would have succeeded. Engadget reports that the service's founders stated the idea behind Quibi might have not been strong enough. The streaming service was made on the premise that people would watch quick TV episodes via mobile while out and about during their days.

"The circumstances of launching during a pandemic is something we could have never imagined". As a result we have reluctantly come to the hard decision to wind down the business, return cash to our shareholders, and say goodbye to our colleagues with grace.

"All that is left now is to offer a profound apology for disappointing you and, ultimately, for letting you down".

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