Why Did Quibi Fail?
Quibi was hyped up massively, but in hindsight, how was this supposed to work?
Quibi was an idea that seemed decent, but with the current apps and demand for content, it’s safe to say that Quibi has failed. How did a service that raised over $1bn in funding but flop so quickly? Let’s find out.
What was Quibi?
Well, Quibi, or quick bites, was a streaming service with the main selling point that it would have high production 10 minute episodes with many celebrities.
It was founded in 2018 but only materialized into a product in April of 2020, later being shut down in December of the same year for lack of subscription revenue. Many big companies invested in Quibi like telecommunications companies and major tech brands. It was directed to younger audiences, around the 20–35 age range.
Why Did It Fail?
The audience, previously mentioned, was around the 20–35 age range. But the CEO and founder of Quibi are both 64 and 70, well out of the directed age range. If they had a younger CEO, it would’ve been easier to make the service more consumable by younger generations.
Furthermore, the main people they got to make the high production content were A-list Hollywood stars, a lot less relatable than content creators like YouTubers and Tik Tok stars. If they wanted to make a more relatable platform that would have intized younger audiences to subscribe to the platform.
2) The Selling Point
The main selling point of Quibi was that you would get high production short content of under 10 minutes. High production and under 10 minutes usually do not go together pretty well. Plus, people have already gotten used to having Tik Tok or Instagram for free, that offer shorter and arguably more enjoyable content. Quibi may have possibly done a lot better if they released it before Tik Tok and the wave of short content came to social media.
The third and last reason I think that Quibi flopped was that they made you pay for a service that still had ads, and made it more expensive to get rid of them. People are used to paying for a service and for it to run smoothly with no ads. This makes the service come across as desperate and valueless.
Overall, I believe these are some of the reasons that Quibi. A service, that in concept, seems good but in execution failed to realise the modern day normalities and demands.