Streaming service Quibi has announced it is shutting down operations and will move on to sell its assets after launching just six months ago.
The development highlights the fierceness of the competition in the streaming industry and also showcases the dominance that Netflix, Amazon’s Prime Video, Disney+ and Apple TV+ hold over smaller streaming service providers, which struggle to keep up against their large arsenal of libraries of shows and massive content budgets.
Founder Jeffrey Katzenberg said in a statement said, “The world has changed dramatically since Quibi launched and our standalone business model is no longer viable.”
Quibi offers entertainment and news in episodes of 10 minutes or less on mobile phones, initially promoted for on-the-go viewing. The service was priced at $5 a month with advertisements, or $8 a month without them.
Chief Executive Meg Whitman and Katzenberg in a letter to employees said, “Our failure was not for lack of trying; we’ve considered and exhausted every option available to us.” They said the failure could be either because the idea itself wasn’t strong enough to justify a standalone streaming service or because of its timing.
Backed by $1.8 billion from Hollywood studios and other investors, Quibi was launched on April 6 when audiences were sheltering at home to help prevent the spread of the coronavirus.
It aired popular shows like “Most Dangerous Game” starring Liam Hemsworth and Christoph Waltz and “Chrissy’s Court” and news and talk shows like “Around the World by BBC News” and “The Report by NBC News”.
According to analytics firm Apptopia, the streaming service generated $3.3 million in subscription revenue since its launch, with revenue trending downward since July.
