Short form video streaming specialist, Quibi, is closing on December 1 after just six months – and having raised $1.8bn. The company had been established by Disney veteran Jeffrey Katzenberg and Meg Whitman (ex CEO of Hewlett Packard).
The aim had been to package short entertainment pieces for millennials but the brand has struggled from the outset against a backdrop of the pandemic and TV streaming wars, despite investment from Disney, Alibaba, Viacom and major banks.
Whitman commented “While we have enough capital to continue operating for a significant period of time, we made the difficult decision to wind down the business, return cash to our shareholders, and say goodbye to our talented colleagues with grace”.
The company had intended to operate a subscription model with highly-crafted content for commuters or café lines but that idea was effectively killed by covid lockdowns. But the speed of the shut down has surprised many, along with the decision to cease trading rather than keep looking for a partner or content buyer.
The Hollywood Reporter said: “It’s been a setting-of-the-sun time for Hollywood power players of a certain age lately. Ron Meyer, 76, was ousted as vice chairman of NBCUniversal due to scandal. In August, former Universal chairman Tom Pollock died suddenly of a heart attack at 77. Now Jeffrey Katzenberg, who will turn 70 in December, finds himself contending with the high-profile failure of Quibi only six months after the premium streaming service launched. While some say they think he has the resilience to fight another day, others question what future awaits him.”
