Short-video platform Quibi has officially announced that it is shutting down operations. The company has announced its decision just six months after the early April launch making it one of the shortest-lived short-video streaming services ever. According to the company, the decision was taken it was struggling to find customers. Run by former Hewlett-Packard CEO Meg Whitman and entertainment executive Jeffrey Katzenberg, Quibi had raised USD 1.75 billion in funding. It also had some of the biggest corporate names in Hollywood who backing the project. Some of the companies that had funded that app are NBCUniversal and Disney. The company has bluntly announced that ‘Quibi is not succeeding’ and plans to sell its assets.
Jeffrey Katzenberg said that they had no confusion in their mind that keep running the app is not going to have a different outcome. “It would just lead to spending all money without anything substantial to show,” he added. The whole idea of the app was to let users watch the short video when they are out, without having any access to a TV. The service was being initially provided at charges of USD 5 per month. But the launch coincided with the coronavirus pandemic following which there was a lockdown. With people stuck at home having access to television, Quibi was left with very little users. TV was a clear preference for people over the phone and Quibi rolled the TV option very later.
There were several other factors that led to the demise of Quibi. The availability of short videos on the internet, already available mobile-only streaming services and the lack of real content were some of the reasons. Quibi was also having tough competition from other platforms like TikTok, YouTube, and others. The company will now notify its subscribers about the last date till when they will be able to access Quibi. However, there is no word about what will happen to star-studded and expensive original shows that are already in the company’s lineup.