Quibi to shut down six months after launch

The US mobile-only short-form streaming service Quibi is shutting down just six months after its launch, sources first told The Wall Street Journal.

Founded as NewTV in August 2018 by Jeffrey Katzenberg and former HP CEO Meg Whitman, Quibi made its launch on April 6, 2020. The idea to attract people: to develop series with episodes up to 10 minutes.

However, the low amount of viewers wasn’t the only problem for the company. Interactive-video company Eko filed a lawsuit against Quibi for the use of its video technology. That technology lets users play different videos according to the position they are holding their smartphone,either horizontal or vertical.

The paid service seemed like a hard sell for Quibi as it was charging $4.99 (with ads) and $7.99 (without ads). Competitors such as Disney+ and the popularity of TikTok were too much for the young service.

“So it is with an incredibly heavy heart that today we are announcing that we are winding down the business and looking to sell its content and technology assets,” both founders said in a recent post on Medium.

“And yet, 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,” referring to the coronavirus pandemic.

“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.”

The company will look for buyers to sell its assets to while returning USD$350 million in capital. Katzenberg and Whitman were able to raise close to $1.75 billion from WarnerMedia, NBCUniversal, Disney and others.

“All that is left now is to offer a profound apology for disappointing you and, ultimately, for letting you down. We cannot thank you enough for being there with us, and for us, every step of the way.”

[Sources]: The Wall Street Journal: Quibi Is Shutting Down Barely Six Months After Going Live. @Quibi-hq (Medium): An open letter to the employees, investors, and partners who believed in Quibi and made this business possible —.