Is Quibi's sale on cards? It's a "speculation," says company
Mobile subscription TV start-up Quibi may go up on sale as per a recent report by The Wall Street Journal, which claims that the founder is looking into "strategic options" that also includes the chance of a potential sale. A company spokesperson, however, responded to the report otherwise, saying, "We do not comment on rumor or speculation." Quibi was launched in April this year.
Is Quibi, launched in April this year, a failed venture?
Despite its ambitious advertisement everywhere, Quibi has failed to walk its talk with a similar subscription rate. It has raised a whopping $1.75bn though, since its launch few months back this year. In its first two months of operation, the app was downloaded 4.5 million times and it managed to get 1.6mn subscribers. That's still less than 30% of the brand's annual target.
The launch of the app was terribly ill-timed
Moreover, the launch of the app was terribly ill-timed as the pandemic forced Hollywood to remain shut down for months together. Still, Quibi has had its ads placed in Academy Awards telecasts and Super Bowl. The ad for Quibi series Most Dangerous Game was also seen on the Emmy broadcast. Were these tactics to up the ante against biggies such as Netflix?
Other problems: Legal tussles, media apprehension, rumors of poor finances
Apart from the pandemic, Quibi faced a lot of media apprehension as well. Several outlets claimed in June that the brand was planning on lay-offs. CEO Meg Whitman, however, maintained the senior executives are taking a 10% pay cut voluntarily and that Quibi is financially fine. Further, it battles video company Eko, which alleges that Quibi has copied its technology in its Turnstyle feature.
The stronghold of the company is its investors
In spite of everything, Quibi has an enviable line-up of investors for its byte-sized 10-minutes episodic plan. Sony Pictures Entertainment, Disney, NBCUniversal, AT&T's WarnerMedia, Viacom Lionsgate, ITV, MGM, and Entertainment One are few of the behemoths which continue to trust Quibi's business plan. Its series #FreeRayshawn also helped actors Jasmine Cephas Jones and Laurence Fishburne bag an Emmy each in the short-form slot.
Founder admits to poor performance, officials refute "speculations"
Although founder Jeffrey Katzenberg claims that COVID-19 became the 'brick wall' for the rather disappointing performance, officials don't agree with the WSJ report. "Jeffrey [Katzenberg] and [CEO] Meg [Whitman] are committed to continuing to build the business in the way that gives the greatest experience for customers, greatest value for shareholders and greatest opportunity for employees," read the official statement of the brand.
