Growth stricken According to several reports, Quibe is shutting down a short-form mobile-native video platform. Co-founded by Jeffrey Katzenberg and Meg Whitman, the startup raised nearly $ 2 billion in its lifetime as a private company. Qu Tech did not respond to requests for comment from Techrrunch.
The company’s prolific fundraising efforts spanned private equity, venture capital and leading institutions in Hollywood, placing bets on Katzenberg’s ability to deliver another hit. Supporters of the startup include Alibaba, Madron Capital Partners, Goldman Sachs and JP Morgan, as well as Disney, Sony Pictures, Viacom, WarnerMedia and MGM.
His pitch was highly bite-sized material, packed with Hollywood star power, and designed for “mobile-first” entertainment. A Schoestring budget for the world of YouTube and Snap, producing mainstream content on Quibi Wanted to be an HBO for smartphones. Investors and pundits questioned the firm’s ability to monetize this vision, and it became clear shortly after launch that the company had missed out.
There are rumors that Quoby was closing earlier this week. The information states that Katzenberg has told people within the industry that the company may need to be shut down after it failed as acquisitions from Apple, Facebook and Warner Media.
In its first few months, Quibe was downloaded 3.5 million times and had 1.5 million active users. While those figures are not very shabby, the company had to adjust its original estimates, which served on a trajectory to achieve 7 million users and revenue revenue of $ 250 million in its first year. While acknowledging that the launch was not planned, Katzenberg blamed Coronavirus for the challenges of the streaming app.
The company expanded in August with free ad-supported tiers for users in Australia. It is unclear whether the Twby Quib brings success to the business model, or what the problems for the app have to do with the business model in the first place.
Netflix’s earnings from earlier this week suggest that the epidemic is slowing the pace of entertainment. The consumer video service disappointed over the number of new paying subscribers, and shares were down sharply yesterday after releasing its earnings report. Those numbers also potentially demonstrate how the market for subscribed video content has been crowded over the past 12 months, with players such as Apple, Disney, HBO and NBC each launching new services and past Have collectively spent billions to acquire the rights to television hits.