Short video streaming service Quibi has said it plans to wind down its operations and begin a process to sell its assets, just six months after its launch.
The statement highlights the dominance that Netflix, Amazon’s Prime Video, Disney+ and Apple TV+ hold over smaller streaming service providers, which struggle to maintain against their big material budgets and vast libraries of displays.
Los Angeles-based Quibi provides news and entertainment in episodes of 10 minutes or less on mobile phones, originally encouraged for on-the-go viewing. The service was priced at $5 per month with ads, or $8 a month without advertising.
“Our failure was not for lack of trying; we’ve considered and exhausted every option available to us,” Chief Executive Officer Meg Whitman and Katzenberg said in a letter to workers. They said the failure could be either because the thought itself wasn’t strong enough to warrant a standalone streaming service or because of its timing.
Quibi, which can be backed by $1.8 billion from Hollywood studios and other shareholders, premiered on April 6 when audiences were sheltering at home to help stop the spread of the coronavirus.
Popular shows on the ceremony comprised “Most Dangerous Game” starring Liam Hemsworth and Christoph Waltz and “Chrissy’s Court” and information and talk shows such as “Around the World by BBC News” and “The Report by NBC News”.
Besides advertisement sales, Quibi has generated $3.3 million in subscription revenue since its launching, with earnings trending down since July, according to analytics vendor Apptopia.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Ayanti Bera in Bengaluru. Editing by Anil D’Silva and Maju Samuel.
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