Did you know the title of the company Quibi was derived from the term “Quick bites” of content?

Quibi was founded in 2018 by Jeffrey Katzenberg, former chairman of Walt Disney Studios, and Meg Whitman, former CEO of eBay.
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The platform aimed to deliver high-quality, short-form content designed specifically for mobile consumption, catering to the increasingly mobile-centric lifestyles of modern consumers.
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Built on the strong shoulders of entertainment mogul like Katzenberg and pedigree like Meg Whitman, nothing could go wrong for the mobile-first platform, except it did and in all the very areas both the founders had years of experience and proven track record.

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Unique Value Proposition that led to its Initial Buzz:

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• Mobile-Optimized Content: Quibi differentiated itself by offering premium, short-form content tailored for mobile devices, with episodes averaging 10 minutes or less in length.
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• Innovation: The platform leveraged innovative technology, such as Turnstyle, which allowed viewers to seamlessly switch between landscape and portrait modes while watching content on their mobile devices, giving them wider screen experience in a mobile.
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Quibi didn’t disappoint in its initial course and set new milestones:
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• It generated significant buzz and anticipation leading up to its launch, with high-profile endorsements and extensive marketing campaigns.
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• The platform attracted a sizable user base early on, with 1.7 millions of downloads in the first week itself.​
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• Quibi secured partnerships with top-tier content creators and convinced Hollywood talent for producing exclusive shows and movies for its platform.
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• Quibi raised over $1.75 billion in funding from investors, including major media companies and tech giants.​
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• It boasted of almost a Million active users within the first 90 days itself.

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Then What went wrong?:

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1. Despite its user base, Quibi struggled to convert free trial users into paying subscribers, resulting in significant losses.
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2. Quibi misjudged the market demand for short-form content, overestimating consumer willingness to pay for a subscription service dedicated solely to mobile viewing.
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3. Quibi’s subscription pricing, ranging from $4.99 to $7.99 per month, failed to offer sufficient value proposition compared to its competitors, against limited content library.
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4. Many business analysts also believe that due to its launch during COVID, it suffered major expectation gap from consumers, as people started consuming long form content throughout 2020 and 2021, and short form content only picked up traction in late 2022.

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Final Shutdown:

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1. Quibi announced its shutdown in October 2020, just six months after its launch.​
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2. Roku acquired the rights to Quibi’s content library in early 2021, integrating it into its own streaming platform.
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3. This failure serves as a cautionary tale for the streaming industry, highlighting the importance of understanding consumer preferences.
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5 Lessons for Start Ups to Learn from This $ 1.75 Billion failure:

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1. Know Your Audience: When launching a new product or service, it’s crucial to have a deep understanding of your target audience’s preferences, behaviours, and needs.
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   For example. By analysing data on viewer behavior, Netflix identifies trends and tailors its content recommendations to individual users.
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2. Differentiate Effectively: Clearly articulate your unique value proposition and differentiate your offering from competitors.
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   Take Airbnb, for example. By enabling travelers to stay in local homes and connect with hosts, Airbnb differentiated itself from traditional lodging options and created a new category in the travel industry.
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3. Pricing Strategy: Ensure your pricing model aligns with the perceived value of your product or service.
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   Consider the case of Spotify, which offers a tiered subscription model with free and premium options. By providing a free ad-supported tier, Spotify attracts a large user base and introduces users to its platform while the premium subscription tier offers more value features.
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4. Content Quality Matters: Invest in high-quality content and prioritise audience engagement and satisfaction to drive long-term success.
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   By leveraging its iconic brands and producing original content, Disney+ delivers a premium entertainment experience that appeals to a broad audience and drives subscriber growth.
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5. Adaptability: Be prepared to adapt to changing market conditions, consumer trends, and external factors that may impact your business trajectory.
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   For eg, the best case is of Zoom, who quickly adapted its platform to meet the increased demand, scaling its infrastructure, enhancing security features, and introducing new functionalities to improve user experience.

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