The mobile streaming app Quibi is shutting down for good after struggling to gain subscribers six months after its launch.
RELATED STORIES: Offset To Host Car Series ‘Skrrt With Offset’ For Quibi!
Quibi was founded by producer Jeffery Katzenberg and former HP Ceo Meg Whitman and was launched in April after the media moguls raised $1.75 billion dollars. The app featured 10 minutes maximum video clips for original series and other genres and predicted to have at least 7 million subscribers as reported by CNBC. Although the app fell in the top ranking for most popular apps, it failed to appeal to the public as it currently has 500,000 subscribers and charged $4.99 a month.
Another negative aspect that critics focused on was that it was only available on mobile despite other streaming services such as Netflix gaining more subscribers due to the coronavirus pandemic.
A statement from Katzenberg and Whitman reads:
“Unfortunately, we will never know but we suspect it’s been a combination of the two. The circumstances of launching during a pandemic is something we could have never imagined but other businesses have faced these unprecedented challenges and have found their way through it. We were not able to do so.
Which brings us to this moment. As entrepreneurs our instinct is to always pivot, to leave no stone unturned — especially when there is some cash runway left — but 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. We want you to know we did not give up on this idea without a fight.”
RELATED STORIES: Netflix Apologizes For ‘Cuties’ Film Poster Amid Outrage Over Sexualizing Children
The company also faced other issues when Katzenberg and Whitman were looking for more funding and planned to sell its content to Facebook and NBCUniversal to avoid any financial loss for investors. However, the content was only owned for two years and a buyer would only be purchasing the app’s technology. They also faced a lawsuit from the interactive video company Eko for using their patent for mobile video technology.