Two months after Quibi’s high-profile launch as a short-form mobile-native TV app led by billionaires Jeffrey Katzenberg and Meg Whitman, it is evident the startup is greatly underperforming relative to the hundreds of millions of dollars already spent on content and marketing.
According to a Wall Street Journal report, “daily downloads peaked at 379,000 on its April 6 launch day but didn’t exceed 20,000 on any day in the first week of June, according to Sensor Tower.” The article says Quibi is on pace for just 2 million subscribers by year-end, from its predicted 7.2 million. Most of the current subscriber base is on free trials, so even just maintaining the current pace of subscriber growth for several more months will be challenging. Quibi hasn’t released any of its own stats on subscribers, which it almost certainly would do to combat the negative perception among investors and press, if the stats showed a lot of traction.
I argued in 2018 that Facebook should turn its IGTV into a Quibi competitor, and I continue to believe there’s untapped opportunity for premium, mobile-native storytelling apps. So what went wrong with Quibi? There appear to have been four key mistakes:
- Miscalculating the risk of launching during the COVID-19 lockdown.
- Failing to see the central role of interactivity in mobile-native entertainment.
- Creating misaligned financial incentives with the wrong content partners.
- Launching Quibi like a movie instead of like a startup.