Quibi to reportedly shut down after just 6 months

Jeffrey Katzenberg at CES

Source: CNBC

Quibi, the short-form entertainment service for mobile devices, will shut down operations just over six months after its launch, The Wall Street Journal reported Wednesday.

The company, which was founded by Hollywood producer Jeffrey Katzenberg and former HP CEO Meg Whitman, raised nearly $2 billion ahead of its launch in April. The app features short-form news and entertainment videos running 10 minutes or less in length on mobile devices. It attracted top Hollywood stars for its shows too, such as Chrissy Teigen and Idris Elba.

Shortly after Quibi’s launch there were already signs that it had failed to sign up subscribers for its $4.99-per-month streaming service. The app was originally pitched to appeal to a younger demographic eager to watch short videos while on the go. But Quibi launched just weeks after the coronavirus pandemic hit the U.S., and reviewers panned it for not having an option to watch on televisions.

Since then, reports surfaced that Katzenberg and Whitten were seeking additional funding to keep Quibi afloat as subscriber numbers failed to meet expectations. On Tuesday, The Information reported that Katzenberg attempted to sell Quibi’s catalog of content to Facebook and NBCUniversal in an effort to avoid a bigger loss for the company’s investors.

Besides the reports of poor subscriber interest, Quibi faced a lawsuit from the interactive video company Eko, which claimed Quibi violated Eko’s patents for mobile video technology. The Wall Street Journal reported in May that hedge fund Elliott Management financed Eko’s lawsuit.

This story is developing.

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