CASE STUDY 1
Quibi’s founder and CEO explain what went wrong
Quibi founder Jeffrey Katzenberg and CEO Meg Whitman told CNBC on Thursday that a convergence of factors led to the failure of the short-form entertainment service for mobile phones.
The company announced Wednesday that it would shut down just over six months after it launched.
“We had a new product. We asked people to pay for it before they actually understood what it was. I think we thought there would be easier adoption by people to it,” Katzenberg said in an interview with Julia Boorstin. Katzenberg also pointed toward the Covid-19 pandemic affecting people’s travel.
Quibi had intended for the app to appeal to a younger demographic who wanted content while on the go. But the app debuted just weeks after the pandemic hit the U.S. and hampered travel, meaning people weren’t commuting and turning to their phones for entertainment. At the same time, streaming competitors such as Netflix and Disney+ saw a surge in viewers.
“Somewhere between the idea being less than perfect, which we own, and the environment we found ourselves in is where the fail has come. What each of those are in that equation, I’m not sure any of us are ever going to know. But it didn’t work,” Katzenberg said.
Quibi, which cost $4.99 per month, originally projected it would have more than 7 million subscribers after its first year, but it only had about 500,000 subscribers as of a few weeks ago, CNBC reported.
The company raised $1.75 billion in funding ahead of its launch, and investors included Disney, Comcast’s NBCUniversal and AT&T’s WarnerMedia. Whitman said the company has at least $350 million in cash, but expects there will be “much more” to return to shareholders following its wind down.
“It was clear that for whatever reason this was not going to be as successful as Jeffrey and I hoped,” Whitman said. “The honorable thing to do is return money to shareholders when we knew this was not going to have a path forward as a viable, stand-alone business.”
The co-founders will focus for the next few months on shutting down the business and selling assets.
“For me, I’ve got to get on that horse and find the next mountain to charge up. It’s the only thing I know how to do and I’ve got a lot to prove,” Katzenberg said.
You are part of the Management Team at Quibi, involved in the initial stages of the company. Your responsibility is to provide Meg and Jeff a plan for the launching of Quibi.
1. Market Analysis of the Target Market
2. How would you launch the new service (versus what was done)?
3. What are the short and medium term results?
4. Finally, what really went wrong? And how can you fix it?
Minimum 1000 words, with proper crediting of sources.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more