The streaming service Quibi, focused on short-duration videos, will be closed just over six months after its debut. The end of the platform was revealed by The Wall Street Journal on Wednesday (21), and confirmed by company founder Jeffrey Katzenberg.
According to the vehicle, the platform, which came up with the idea of revolutionizing the way of consuming entertainment, has been facing a series of difficulties, including a lower than expected audience, even though it managed to attract big names from Hollywood and raise an initial US investment $ 1.75 billion.
A number of factors are pointed out by the publication as responsible for the death of Quibi, including the pandemic of the new coronavirus, which made the population spend more time at home. With this, the content produced exclusively for mobile phones won the competition of TV, and can only come out winners if they were really innovative.
Another factor mentioned is the almost infinite amount of content found for free on platforms like TikTok and YouTube, while the new company does not offer an option without monthly fees – there is only a free trial period. The lack of a TV app, which has just been released now, is also among the justifications.
Shortly after the news was published, Katzenberg and Quibi CEO Meg Whitman released a public letter commenting on the closure of the service. “It is with an incredibly heavy heart that today we announce that we are closing the business and looking to sell its content and technology assets,” they wrote.
In the text, they also comment that they tried to do everything to attract new subscribers and regret that the project has not managed to maintain itself, besides citing the pandemic as a major obstacle.
Before choosing to discontinue Quibi, Katzenberg would have tried to sell the company to Apple, Facebook and WarnerMedia, but the companies were not interested in the business.