Mobile Streaming Service Quibi Shuts Down Six Months After Launching
Despite raising $1.75 billion USD in funding.
Quibi, the mobile streaming service that specialized in short-form content, is shutting down after just six months of operation. According to a Medium post by founder Jeffrey Katzenberg and CEO Meg Whitman, the platform failed due to the timing of its launch (it debuted at the height of the coronavirus pandemic) and the strength of its concept.
Despite raising $1.75 billion USD in funding, Quibi was unable to attract paying subscribers. The Verge reports that the service lost over 90 percent of its subscribers after their three-month trials ran out. In addition, Quibi faced formidable competition as platforms including TikTok and YouTube provide a host of short-form content for free.
“As entrepreneurs our instinct is to always pivot, to leave no stone unturned — especially when there is some cash runway left — but we feel that we’ve exhausted all our options,” Katzenberg and Whitman wrote. “As a result we have reluctantly come to the difficult decision to wind down the business, return cash to our shareholders, and say goodbye to our colleagues with grace.”