Why Did Quibi Shut Down? My Take On Why This Awesome Streaming Service Went Belly Up
Quibi was a media streaming service that was launched by Jeffrey Katzenberg and Meg Whitman in March 2019. The service was developing a low-resolution video to watch on small devices. Quibi was expected to compete with the likes of Netflix, Amazon Prime Video, and Hulu. However, Quibi closed down on May 24 2019 because it failed to secure enough funding after two rounds of financing. The company still owes $50 million to its creditors. The startup burned through almost $1 billion before reaching a valuation of $1.5 billion. And so, in this blog post, let’s look at the question of why did Quibi Shut down? And what they might have done differently, for more details and information on all things business, read on or subscribe to our blog for additional details and information.
There were a couple of reasons behind the closure:
1) Quibi’s content was too expensive. It cost more than Netflix and Hulu, which were their competitors in the market.
2) The initial public offering (IPO) didn’t go well, so the company started searching for a new investor to avoid bankruptcy. The effort was not successful enough due to a lack of interest from investors.
3) Quibi did not have any differentiating feature. It may be because it was a combination of Apple Music, Netflix, and Amazon Prime Video.
4) According to some reports, Quibi had issues with its staff. The CEO was dismissed in March 2019 after Katzenberg felt that he wasn’t coping up with the job. There were some other problems in the company but they can’t be disclosed due to non-disclosure agreements.
5. Many of the employees were not that happy at Quibi due to the stressful and fast-paced working environment.
6. The company also suffered from a lack of potential viewing audiences. The advertising was not targeted and focused well.
7. Many other startups like Disney, Warner Media, and Apple are planning to launch their services in 2019-2020. This would have made it difficult for Quibi to keep up with the competition.
8. The technology should have been improved. Quibi was supposed to be an entertainment platform, but it failed to target audiences creatively. It was more like a cable TV channel.
Why I Think That Quibi Really Shut Down, A Lack of Good Content
Aside from the obvious reasons, meaning that the company couldn’t secure enough funding, that they had a lack of revenue, and the like, I feel the reason that they failed to get the word out may have actually been a lack of good content. Think about it….say Quibi had put together a House of Cards quality season, or a Limitless series, or a stranger things, or even a TWD level show, 0 chance they would have shut down, they would have had WAY TOO MUCH traffic and would have been able to continue running their platform even without adequate financing from investors. Most Dangerous Game may have been their best show, but it still was not enough to compete with the real kingpins in cable and online streaming entertainment.
Why Did Quibi Shut Down? The Primary Reason May Be Due To A Lack of Revenue Generated
This one sort of goes without saying and goes back to their lack of good content, aside from Most Dangerous Game, I can’t really think of any fantastic shows that they had off the top of my head. What I will also say is that their TV streaming model of giving their entire season all at once and chunking it into clips of 12 or 13 15 minute intervals may have back fired. As the jury showed, the majority of folks don’t necessarily want to watch their TV like that.
Final Thoughts on Why Did Quibi Shut Down? This Bloggers Final Opinion
Quibi was a good idea but it did not work out well due to various factors like lack of funding, poor content, and problems within the company. This may not be the end of Quibi, as its investors are planning to sell it off.
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