In this video, Patrick Bet-David looks at the recent failure of Quibi. He talks about what Quibi is, what they were up against and why they ultimately failed.
Quibi raised 2 billion dollars and lost 1.8 billion in just six months. Their business model was to release 10-minute episodes of original content, in an effort to cater to a young audience. Quibi was successful recruiting big acts such as Dwayne “The Rock” Johnson, Chance the Rapper, Jennifer Lopez, Kristen Bell, Liam Hemsworth, Kevin Hart, Queen Latifa, and the list goes on. However, that was not enough to keep Quibi alive.
One of their segments was a spinoff from the show “60 Minutes,” except Quibi’s was a 10-minute segment to appeal to their young, target demographic. The only problem was that the average age of 60 Minutes’ audience is 60 years old. A long stretch from Quibi’s target audience of 18-34.
Furthermore, Quibi spent a fortune on Super Bowl and Oscar ads, while declining to work with MrBeast, a YouTube influencer with a large following that matched Quibi’s target audience. As a result, a poll showed most people who viewed the ads thought Quibi was a food delivery service.
If that wasn’t enough, Quibi also disabled the screenshot feature from their platform, preventing its users to share and market their service and found themselves in the middle of a lawsuit regarding their technology.
Quibi failed to listen to their users/target audience and lacked the passion to keep moving forward after six short months. Maybe there are more elements we don’t know about but from the outside in, it looks like they might have given up too early and started off a bit disconnected from their audience.
What do you think?
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A lot of great stuff in this QUIBI piece but the highlight for me is “In market research following its Oscars and Super Bowl ads, 70 percent of respondents said they thought Quibi was a food-delivery service” https://t.co/RBFjPeIYdP
— Tom Gara (@tomgara) July 6, 2020