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Why Did Quibi App Collapse After Raising $1.75 Billion?

Why did Quibi collapse after 6 months?

Quibi describes itself as "an over-the-top American short-form streaming platform that generates content for viewing on mobile devices." It was founded in 2018 by Jeffrey Katzenberg, a top American film producer and media proprietor who also served as chairman of Walt Disney Studios from 1984 to 1994 and Meg Whitman, also a veteran American business executive, former political candidate, board member of Procter & Gamble and Dropbox and previously president and CEO of Hewlett Packard Enterprise.

So, obviously in terms of leadership, Quibi combined the best of Hollywood and Silicon Valley and their vision of what could be the game-changing video streaming platform raised as much as $1.75 billion. Quibi was targeted at millennials who wanted a higher video quality than what you would generally get with free video streaming services and presumably are able and willing to pay between $5 - $8 dollars a month for the service.

Unfortunately, the service was launched at the height of the COVID-19 pandemic in April 2020 and 6 months later in October the project collapsed. It is difficult to tell if the prevailing negative environmental conditions at time of launch were responsible for the failure or if there were other elements that were not properly thought through in the process of creating and promoting the product. Business Insider states that "Quibi's short lifespan shows unheeded warning signs and costly missteps at key moments that hinted at the debacle to come".


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