{"id":94670,"date":"2020-10-21T23:24:44","date_gmt":"2020-10-21T20:24:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/jeffrey-katzenbergs-video-app-quibi-is-shutting-down-after-six-months\/"},"modified":"2020-10-21T23:24:44","modified_gmt":"2020-10-21T20:24:44","slug":"jeffrey-katzenbergs-video-app-quibi-is-shutting-down-after-six-months","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/jeffrey-katzenbergs-video-app-quibi-is-shutting-down-after-six-months\/","title":{"rendered":"#Jeffrey Katzenberg\u2019s video app Quibi is shutting down after six months"},"content":{"rendered":"

“#Jeffrey Katzenberg\u2019s video app<\/a> Quibi is shutting down after six months<\/strong>”
\n<\/p>\n

\n Quibi, the short-form video app founded by Hollywood mogul Jeffrey Katzenberg, is calling it quits after just six months, according to reports.<\/p>\n

The high-profile startup \u2014 which raised a whopping $1.75 billion for an April launch that coincided with the start of the COVID-19 pandemic across the US \u2014 is shutting down amid slumping demand for its videos, the Wall Street Journal reported<\/a> Wednesday.<\/p>\n

The shutdown marks a shocking end to Hollywood mogul Katzenberg\u2019s plan to create a new category of entertainment that catered to people on the go. Looking to build a library of must-watch videos \u2014 typically series<\/a> made up of episodes lasting five to 10 minutes each\u00a0 \u2014 Katzenberg had lured A-list stars like Jennifer Lopez, Kevin Hart and Nick Jonas.<\/p>\n

But coronavirus lockdowns kept most of the app\u2019s would-be subscribers hunkered down at home in front of their TVs, executives said. Quibi eventually allowed subscribers to its $4.99-a-month service to watch its shows on TV, but some experts doubted whether that was even the real problem.<\/p>\n

Tal Chalozin, the co-founder and chief technology<\/a> officer of online advertising and tech firm Innovid, noted coronavirus lockdowns actually boosted the viewership of services like Netflix, Hulu, Snap and Disney+.<\/p>\n

\u201cViewership is at an all-time high even if ad dollars are limited,\u201d he said. The real problem, he added, was that Katzenberg tried to launch a service with an unknown brand and limited content. With well-known rivals already out there, he said that it is \u201cclose to impossible\u201d to succeed.<\/p>\n

\u201cThe window is closing if not closed already on streaming services \u2014 especially an unbranded one,\u201d he said.<\/p>\n

The Journal said Katzenberg was informing Quibi\u2019s investors \u2014 which included Disney, NBCUniversal and AT&T\u2019s WarnerMedia<\/a> \u2014 that the company is closing after it recently hired a restructuring firm to evaluate its options.<\/p>\n

A Quibi spokeswoman declined to comment.<\/p>\n

Katzenberg had personally invested $5.5 million in an early funding round, while former HP Chief Executive Meg Whitman, who served as Quibi\u2019s CEO, had plunked down $10.5 million, according to The Information, a tech news<\/a> site. Both will lose \u201cmillions,\u201d as will other backers including Alibaba, Goldman Sachs and Google, the site reported.<\/p>\n

Katzenberg, a former Disney executive, recently had tried to sell Quibi\u2019s catalog of programming to companies such as NBCUniversal and Facebook without any success, according to the site. Among the sticking points: that Quibi didn\u2019t actually own many of the shows on its app.<\/p>\n

\u201cThis is a giant meltdown,\u201d said Eric Schiffer, chief executive of private equity firm The Patriarch Organization. \u201cIt is a modern-day Hindenburg within the digital and entertainment arena.\u201d<\/p>\n

Schiffer said it is likely that Quibi opts for a so-called \u201cABC liquidation,\u201d or assignment for the benefit of creditors. Such a liquidation would allow Katzenberg and chief executive Meg Whitman to avoid the stench of bankruptcy, and assign Quibi\u2019s assets to a third party to sell off the assets and pay off creditors.<\/p>\n

Schiffer noted that Quibi\u2019s content library, which includes a courtroom reality show with Chrissy Teigen called \u201cChrissy\u2019s Court,\u201d \u201cThe Andy Cohen Diaries,\u201d an animated show based on Cohen\u2019s journals; and a horror anthology from Sam Raimi called \u201c50 States of Fright;\u201d will likely be sold at \u201cfire sale prices.\u201d<\/p>\n

News of Quibi\u2019s demise began trickling in last month amid rumors of a strategic review of the company. Also hit by stiff competition from\u00a0 free short-form video apps YouTube and TikTok, Quibi was never able to meaningfully grow its subscriber base. With lower-than-expected viewership, blue chip advertisers like PepsiCo, Walmart and Anheuser Busch, began deferring their payments.<\/p>\n

Quibi is also facing a high-stakes lawsuit over patent infringement from rival Eko, which is funded by billionaire backer Paul Singer.\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Jeffrey Katzenberg\u2019s video app Quibi is shutting down after six months” Quibi, the short-form video app founded by Hollywood mogul Jeffrey Katzenberg, is calling it quits after just six months, according to reports. The high-profile startup \u2014 which raised a whopping $1.75 billion for an April launch that coincided with the start of the COVID-19…<\/p>\n","protected":false},"author":1,"featured_media":94671,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2020\/10\/quibi-shutting-down-e1603311555472.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[76551,4978,1545,2961,1707,70917,1372],"class_list":["post-94670","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-10-21-20","tag-bankruptcy","tag-coronavirus","tag-jeffrey-katzenberg","tag-quibi","tag-startups","tag-streaming"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/94670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=94670"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/94670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/94671"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=94670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=94670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=94670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}