Quibi Is Shutting Down

Quibi is calling it quits less than a year after it launched this spring. The short form video app is officially shutting down today after failing to find a buyer, The Wall Street Journal reports.

The company announced today that it plans to “to wind down its business operations and initiate a process to sell its assets,” citing “the changed industry landscape and ongoing challenges” that made it “clear that the business would not be able to continue operating for the long-term on a standalone basis.”

In a prepared statement, Quibi founder Jeffrey Katzenberg said, “Quibi was founded to create the next generation of storytelling,” per Variety. “We have assembled a world-class creative and engineering team that has created an original platform fueled by groundbreaking technology and IP, enabling consumers to view premium content in a whole new way. The world has changed dramatically since Quibi launched and our standalone business model is no longer viable. I am deeply grateful to our employees, investors, talent, studio partners and advertisers for their partnership in bringing Quibi to millions of mobile devices.”

The company, which was founded by Katzenberg and led by CEO Meg Whitman, was considering a sale just last month after struggling to attract and retain subscribers ever since it launched in April. At the time, a source told the WSJ that Quibi was “working with advisers to review its options,” but that “the review process is a sign of strain.”

Quibi has been plagued by low subscriber count and engagement numbers, reportedly only keeping 8% of its customers as paying subscribers after their 90-day free trial of the service ended. Despite having some big stars attached to its shows, including Anna Kendrick, Liam Hemsworth, Sophie Turner and Chrissy Teigen, Quibi failed to land a hit series.

The news of Quibi’s shutdown comes after it raised nearly $2 billion dollars from investors before its April launch, including Disney, Time Warner, Viacom, NBCUniversal, and Sony Pictures. Despite its early promise, the app only had about 500,000 subscribers just a few weeks ago.

Back in May, Katzenberg told the New York Times that he blamed the coronavirus for his app’s slow start. While Quibi was intended for on-the-go viewing in short bites, pitched as an app to watch while waiting in line for coffee or on a quick commute, the app was rolled out during the first weeks of the coronavirus pandemic in the U.S., when many Americans were staying home and quarantining. “I attribute everything that has gone wrong to coronavirus,” Katzenberg said at the time. “Everything. But we own it.”

He also admitted that the launch date for Quibi was not ideal, but insisted that the app was doing well. “If we knew on March 1, which is when we had to make the call, what we know today, you would say that is not a good idea,” he said. “The answer is, it’s regrettable. But we are making enough gold out of hay here that I don’t regret it.”