Report: Quibi advertisers look to defer payments following disappointing launch

midian182

Posts: 5,871   +48
Staff member

If you’re unfamiliar with Quibi, it’s a $4.99 per month subscription-based streaming platform packed with scripted and unscripted content that runs from around seven to ten minutes. It managed to attract plenty of big-name stars for its launch slate, including Jennifer Lopez, Kevin Hart, Chrissy Teigen, Anna Kendrick, Will Arnett, Liam Hemsworth, and Christopher Waltz.

Quibi, which is a combination of the words “quick” and “bites,” was founded by Hollywood mogul Jeffrey Katzenberg and managed to raise $1.75 billion from investors. But it hasn’t proved to be an instant hit.

According to the Wall Street Journal, advertisers such as PepsiCo, Yum Brands, and Walmart are concerned about the low viewership numbers and the impact of Covid-19.

Part of the agreement with advertisers is that Quibi will deliver a set number of ad views over an agreed period. With viewer numbers lower than expected, there are concerns it won’t be able to meet those guarantees and will need more time to make up for the shortfall. Some advertisers want their payments spread out over longer periods.

The WSJ’s sources say 1.5 million people have signed up to Quibi’s free 90-day trial, and the app has been installed 4.2 million times. The company is targeting seven million paying subscribers in its first year and wants 16 million within three years.

While the pandemic has seen other streaming services such as Netflix and Amazon increase their subscriber numbers, it’s hampered Quibi’s efforts. Production of new shows is mostly shut down in Hollywood, and the service’s short-format content is designed to be watched while commuting and on work breaks, which few people have experienced over the last couple of months.

The Journal writes that Quibi executives are also blaming the poor launch on an over-reliance on scripted programming, a pool of inactive users, and lower-than-hoped enthusiasm from some viewers.

With so many streaming services out there, standing out from the pack isn’t an easy task, and it’s something Quibi is failing to do.

Image credit: rafapress via Shutterstock

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rrwards

Posts: 150   +239
It's incredible how much money was dumped into this just to see it fail. The creator blames the pandemic, but with other streaming sites doing well, I can't help but feel the blame shouldn't fall entirely on the pandemic.
 

Teko03

Posts: 613   +327
It's incredible how much money was dumped into this just to see it fail. The creator blames the pandemic, but with other streaming sites doing well, I can't help but feel the blame shouldn't fall entirely on the pandemic.
In his defense, this service was designed to cater to the "always on the go" and "not enough time to sit around and watch a series" demographic. With the pandemic, everyone suddenly has more than enough time to watch the usual 10-20 1-hr episode seasons. That being said, I still don't think it would have performed well even without the pandemic.
 

MasterMace

Posts: 130   +86
Services like this normally take 5 years to take root. First year, charging $60 and only giving access for 1 year (that's what $5 a month is), and they expect to get 7,000,000 subscribers? This is the biggest time for streaming services and it's fallen flat, as expected.