Quibi short-form streaming service announces shut down

Short-form streaming service Quibi has announced that they will be shutting down after operating for six months.

Quibi is known as the mobile-first streaming service specializing in original shows with short five to 10-minute-long episodes.

According to the Wallstreet journal, it has announced its business operations are shutting down and selling its assets a little more than six months after launching, according to a statement released by the company.

The founder and board Chairman Jeffrey Katzenberg said in the statement that Quibi was founded to create a platform for the next generation of storytelling.

Since the launch of Quibi, the world has changed dramatically, and our standalone business model is no longer viable, he added.

Quibi has always been struggling

It is seen that though the streaming company did raise $1.75 billion from investors like Walmart, PepsiCo, and Anheuser-Busch before its launch in April.

But Quibi has struggled to gain viewers, which has resulted in big advertising deals being put on hold, The Journal reported.

Quibi was seen exploring multiple options, including a sale over the last few months. It is reported that’ Katzenberg had recently told people that it might have to shut down its company on Tuesday.

Quibi has struggled to gain a hold of its place in the streaming industry since its launch. Even though it always had its huge investors and influential names attached to the service, including former Hewlett Packard Enterprise CEO Whitman at the helm.

The service was started with the view of being used on the go. But the timing of its launch coincided with the coronavirus outbreak leading to fewer people commuting and an economic downtown that may have made customers hesitant to pay for a subscription.

And despite having an impressive Hollywood starring, including Liam Hemsworth and Anna Kendrick, none of Quibi’s shows has become significant hits.

Streaming on the go

The video platform designed for people who watched on their phones as a new streaming service started to challenge streaming networks like Netflix over the past few years.

Most of the streaming platforms were a significant part of much bigger tech and entertainment companies, like Apple, Disney+, Hulu, and more.

Despite giving a 90-day free trial, the short videos abound on the internet, and the coronavirus pandemic kept many people at home, the service struggled to reach viewers.

The service had its service, which started at $5 a month, was supposed to be that you could watch short videos while out, without access to a TV.

Whitman, the CEO, said that although they have enough capital to continue operating for a significant period, they had to come to this difficult decision to shut down the business.

They are in a position to return cash to their shareholders and say goodbye to our talented colleagues.

The company also stated the money from the sale of its assets will go towards paying off liabilities, and whatever remains will be returned to investors.

Image courtesy of rafapress/Shutterstock

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