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US News video service Quibi closes after half a year

10:10  22 october  2020
10:10  22 october  2020 Source:   finanzen.net

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Jeffrey Katzenberg and Meg Whitman’s .75bn Netflix competitor is to close after failing to meet subscriber goals, reports say.

Quibi , the mobile streaming service founded by Jeffrey Katzenberg and Meg Whitman, will shut down after six months on the market. Quibi Shutting Down After Six Months — What the Hell Happened? Now we’re here, watching the nascent streamer close up shop after less than a year

The video service Quibi, which was started with investments of billions, is giving up after only half a year.

DANIEL ROLAND/AFP/Getty Images © Provided by Finanz.net DANIEL ROLAND / AFP / Getty Images

The decision was made to cease operations and to repay the remaining money to investors, founders Jeffrey Katzenberg and Meg Whitman announced on Wednesday. Quibi started with the promise to bring together Hollywood and new technologies from Silicon Valley. Katzenberg was once head of the Disney studios, among other things, and Whitman made the eBay trading platform successful.

The concept at Quibi was to deliver professionally produced videos in five to ten minute clips exclusively for smartphone users. Katzenberg had already blamed the Corona crisis for the weak start of the service in May - because people did not spend as much time on the go with their smartphones as before.

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Mobile- video service Quibi is considering shutting down just six months after launch, according to The Wall Street Journal's Benjamin Mullen. The streaming service , which was founded by former DreamWorks cofounder Jeffrey Katzenberg, raised .75 billion from investors like Walmart, PepsiCo

After a conference call between Quibi leaders and investors, the Wall Street Journal reported that of the 1.75 billion dollars originally collected, there were still 350 million left to be repaid. Hollywood heavyweights like Disney and NBCUniversal were among the funders.

Katzenberg and Whitman did not mention any amounts in a blog post. You will never know for sure whether the idea behind Quibi was not good enough or whether you started the service at the wrong time, they said. "We suspect it was a combination of both."

The founders were so convinced of the concept that they didn't even plan to transfer the videos to the television. That was then made up for with a delay. Likewise, Quibi initially failed to allow the sharing of links to videos or excerpts on the Internet.

At the same time, Quibi started against massive streaming competition - from the top dogs Netflix and Amazon to relatively new offers from Apple , Disney and TV channels. For a subscription price of $ 4.99 a month, Quibi offered significantly less than its rivals./so/DP/zbLOS ANGELES (dpa-AFX)

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