As we all know money can’t buy you everything a good case of what we would tackle today. Quibi is a mobile-only streaming platform launched in the month of March. It was Jeffrey Katzenburg and Meg Whitman.
Intro about quibi:
Quibi launched on the 6th of April, 2020, it was available in Canada and the US, it then spread t other regions like Germany, the UK, Ireland, Australia. During Launch day, Quibi says more than 300,00 Downloads and it peaked at number 3 on the App Store. These figures were great for the new App, but soon plateaued with time. The Co-founders of Quibi however attributed this to the Coronavirus, which may be correct to some aspect. Quibi was going head-to head with giants such as HBO, Hulu, Disney+, and Netflix, so they needed the much-needed cash and a collection of stars to begin with. Of cause they did with the likes of Jennifer Lopez, Steven Spielberg , Idris Elba and many more. They were willing to pay these stars a whooping $100,000 just for 1 minute of video.
How they got their monies:
I know you would be asking how come they had all that cash to spend. They had major investors such as Walt Disney, 21st Century Fox, MGM, Liongate Group, Ali Baba Group, JP Morgan Chase, Goldman Sachs, ITV. Together Quibi raised more than $1Billion in funding from this major investors.
How Quibi Operated:
Users of Quibi had to pay $5/month for a subscription on their Mobile Devices. The users where however couldn’t take screenshots or share moments from the Quibi app.
Quibi was targeting from 18-34 Years all for their app. But they however got so many things wrong. Quibi had 5 million Downloads but only 700,000 to 900,000 downloaders contributed to paid subscribers.
Reasons why Quibi Failed:
Quibi failed to capitalize on their market segment , some industry experts attributed this to the Founders who assumed they knew their Target audience so well. They made mistakes such as:
- Spending Irrelevant Amounts on Mega events such as the SuperBowl, They spent around $5.2Million for a 30 Seconds Ad of which users and Audiences were confused or didn’t know about the Quibi service.
- The stars they were targetting didn’t really appeal to their younger audience. They would had targeted Youtubers such as Mr Beast, Pewedie, Ryan’s World, and many other Youtube Celebs at a cheaper rate.
- Failure to harness the power fo Social Media such as Facebook, Twitter, Instagram, Youtube and even Tiktok.
- Users didn’t understand the App until they had installed it. Many users were confused and thought Quibi was a food ordering platform like Uber Eats or Zomato.
Quibi has shown that it’s always good to consult with industry experts in the domain you want to pursue. Quibi would have needed to consult with both a Reputable IT Consultancy and even a Digital Marketing Agency.
The Quibi board mentioned that it would seize functioning as from the 1st of December, it would return $350 Million to Investors, Disband the team they created, and then they would bow their heads in shame.