The short video streaming service Quibi has announced plans to shut down the service, just over seven months after its launch. The combination of the coronavirus pandemic, which pushed viewers towards longer form content for home viewing, and an unsuccessful business plan means an end to the 'quick bites' service started by former Disney executive Jeffrey Katzenberg and the former HP and eBay CEO Meg Whitman.
Quibi was offered as a paid subscription for USD 4.99 per month, and the company also raised money through advertising. In a joint statement, the executives acknowledged that "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."
As a result, the company will wind down the business and is working to sell on its technology and assets and return any cash remaining to shareholders. Quibi invested significantly in content, with over 100 originals in its portfolio, and raised USD 1.75 billion from investors including the major studios to fund the operation.
