Barely six months after beginning enterprise with $2 billion, the cellular streaming service Quibi, is calling it quits.
“We feel that we’ve exhausted all our options. As a result we have reluctantly come to the difficult decision to wind down the business, return cash to our shareholders, and say goodbye to our colleagues with grace,” the corporate introduced Wednesday in an open letter to the employees, investors, and partners.
It was a sudden finish for the Hollywood firm launched April 6, by large names within the leisure trade who had excessive hopes of reinventing the streaming TV sport.
“Quibi was founded to create the next generation of storytelling,” founder and board Chairman Jeffrey Katzenberg stated in the statement. “The world has changed dramatically since Quibi launched and our standalone business model is no longer viable.”
Katzenberg, a former Disney govt who co-founded the studio DreamWorks SKG, made headlines whereas growing Quibi, reportedly elevating nearly $2 billion with former HP CEO Meg Whitman onboard at Quibi as its CEO.
“While we have enough capital to continue operating for a significant period of time, we made the difficult decision to wind down the business, return cash to our shareholders and say goodbye to our talented colleagues with grace,” Whitman stated in assertion.
So why did Quibi fail?
“I attribute everything that has gone wrong to coronavirus,” Katzenberg advised the Times . “Everything. But we own it.”
But critics complained that it was tough for customers to share what they have been watching on social media with mates and hard to search out particular programming on the app. Initially, Quibi content material was solely viewable by the smartphone app and customers could not watch content material on TV units.
Critics additionally stated that the platform did not discover a single, galvanizing hit present to achieve customers’ consideration, debuting after main new streaming companies from Disney and Apple had already been within the market for months.
Nearly all of Quibi’s reveals have been horrible, The Verge stated.
Subscribers can be notified at a later date since it is going to take a number of months to close every part down, together with the lack of 200 workers.