How Quibi Burned $2 Billion in 6 Months

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?

 

Recommended videos: Why Disney World is Open but Disneyland is Closed – COVID Aftermath: https://youtu.be/MmByg8eTyHY

 

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Links referenced in video:

https://www.wsj.com/articles/quibi-weighs-shutting-down-as-problems-mount-11603301946

https://quibi.com

https://www.crunchbase.com/organization/quibi

https://www.businessinsider.in/entertainment/news/quibis-star-studded-shows-cost-the-startup-up-to-100000-per-minute-to-make/articleshow/78819133.cms

https://www.refinery29.com/en-us/2020/04/9657417/celebrities-shows-on-quibi-full-list

https://www.cbsnews.com/news/60-in-6-a-new-era-in-storytelling-for-60-minutes-quibi-2020-06-14/

https://www.bbc.com/news/entertainment-arts-53637305

Report says Quibi lost 92% of its earliest users after free trials expired

https://www.cnbc.com/2020/08/07/streaming-war-hit-tipping-point-in-q2-heres-how-media-giants-compare.html

https://www.vulture.com/2020/07/is-anyone-watching-quibi.html

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