Quibi Holdings LLC., which launched about six months ago, is shutting down, The Wall Street Journal has reported. Quibi stands for “quick bites” and offered viewers 5 to 10 minute “chapters” of entertainment that were formatted to fit on a smartphone screen. The company was hoping to revolutionize how people consume entertainment.
Quibi was led by Founder & Chairman of the Board Jeffrey Katzenberg, and Chief Executive Officer Meg Whitman. Together, they posted on Medium “An open letter to the employees, investors, and partners who believed in Quibi and made this business possible – “.
…Quibi was a big idea and there was no one who wanted to make a success of it more than we did. Our failure was not for lack of trying; we’ve considered and exhausted every option available to us…
…And yet, Quibi is not succeeding. Likely for one of two reasons: because the idea itself wasn’t strong enough to justify a standalone streaming service or because of our timing…
The Verge reported that Quibi launched in April of 2000, during a pandemic. It offered two plans, one with ads for $4.99 or ad free for $7.99.
After several countries created “lockdown” or “shelter-at-home” rules, people stopped commuting and started working from home. Students in many places started remote learning, instead of attending school in person. This was a problem for Quibi who appear to have aimed their “quick bites” of entertainment for commuters and parents waiting to pick up kids from school.
What’s next for Quibi? According to the Medium post, over the coming months, they will be working hard to find buyers who can leverage Quibi’s valuable assets to their full potential.