Experimental Streaming App, Quibi, Faces Shut Down After Just Six Months

Graphic by James Gocke

After only six months, the short-form streaming service Quibi is shutting down. The app planned to revolutionize the way streaming services were used but ultimately failed in the wake of COVID-19 and a crowded marketplace.

Is it a triumph of the traditional, or innovation unappreciated?

The mobile-exclusive content platform, started by DreamWorks co-founder Jeffrey Katzenberg, launched in April of this year. It intended to produce “quick bite” programming—short, episodic stories that could be watched on the go. With the advent of the pandemic and most people being confined to their homes, Quibi struggled to capitalize on what was supposed to be their distinguishing trait in a crowded streaming market. While everyone was home with extra time on their hands, a streaming service that offered no way to cast to a TV failed to appeal. 

The story of Quibi’s failure is stranger than simply a poorly timed launch. It garnered significant financial support from every major studio in Hollywood and by launch it had several A-list celebrities and directors lined up to produce content. It was led by Katzenberg, an eccentric Hollywood powerhouse for the better part of the last 40 years who has gone from project to project with a lot of success. It had massive financial backing, premium content featuring a plethora of well-known talent (such as Idris Elba, Chrissy Teigen, and Joe Jonas) and experienced leadership.  

With all of these things seemingly in their favor, its failure is surprising and has been cause for speculation. There are a number of theories about where it went wrong, including Katzenberg’s ego, the pandemic killing the on-the-go appeal and a business model that lacked a free, ad-supported version for those who didn’t want to pay to subscribe.

But the real failure is more fundamental than that. The central idea of Quibi was that people want to watch high-quality video content in tiny increments on their phones. They were wholeheartedly dedicated to that idea, even boasting that “people on Quibi have $100,000 a minute to make content” in a Vulture report from July. The problem is that’s like saying that people want to order a gourmet steak dinner from the drive-thru window at Wendy’s. Cloth napkins don’t work too well in the front seat of your car. Extremely well-produced television doesn’t play it’s best on a cell phone. 

Perhaps that’s where Quibi’s ultimate failure lies. They thought they were competing with Netflix, creating high-quality original content that people would pay for subscriptions in order to see. More importantly, they were competing with the likes of Spotify and social media platforms like Instagram and TikTok, platforms that can be successfully used while traveling and are well-suited to smartphones. 

In an alternate timeline with no pandemic, perhaps Quibi would have lasted longer. Instead, the grand, expensive experiment that was Quibi is now over.