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Here Is Why Quibi Closes It Doors Just Six Months After It Began Operations

Quibi had launched in April 2020 and on 21st October 2020, its executive head announced that it is shutting down its operation. If there ever was a time a description hurt an entity severely, it was this time. Quibi was supposed to be a short-form streaming platform that would take the world by storm, instead, it became a short-term, short-lived, streaming service.


Confirming why Quibi was shutting down, founder Jeffrey Katzenberg and CEO Meg Whitman co-wrote an open letter to employees, investors, and partners. They explained that Quibi did not succeed for two likely reasons, “because the idea itself wasn’t strong enough to justify a standalone streaming service or because of our timing.


A standalone short-form streaming service is a difficult product to sell in this current world. This is because many social media companies now offer such service in addition to their many other connectivity features. TikTok, Instagram, YouTube, Likee, and so on would never have let Quibi fly; not unless it brought something new that the others did not have.

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Quibi had the backing of investors such as The Walt Disney Company, 21st Century Fox, NBCUniversal, Sony Pictures, Time Warner, Viacom, eOne, Lionsgate, MGM, Madrone Capital, Goldman Sachs, JPMorgan Chase, Alibaba Group, Liberty Global and ITV. It was also run by a seasoned CEO such as Meg Whitman. Yet, it failed under six months.


When Quibi launched in April 2020, it had announced 17 million app downloads the first week. However, things started going downwards from there. Also, its strategy of offering free subscriptions for new users did not work. While many subscribed when it was free, they did not stay loyal when the bonus period elapsed.


The company’s analysts had been projecting 7.4 million paying subscribers in its first year; but the number in June 2020 pointed at 2 million subscribers being a miracle. Not even a free ad-supported version in August 2020 could save Quibi from closing down.


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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.

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