After six months of operation, popular streaming service Quibi Holdings LLC is apparently shutting down according to those in the know.
Initially, Quibi had hopes of setting itself up as the new up and coming streaming service, rivaling competitors like Hulu, Netflix and others. Things seem different now as expectations didn’t match up with the outcome as far as subscriber count. By this point, the company was expected to have millions of subscribers but have only amassed a few hundred thousand so far.
Many factors could’ve contributed to Quibi’s abysmal outcome. The current pandemic seems to be the main culprit of any business shutting down or perhaps the streaming service’s unique viewing experience could have played a part as well as it delivered shows in 5- to 10-minute “chapters” formatted to fit a smartphone screen.
On Wednesday, Quibi investors were called by founder Jeffrey Katzenberg, telling them he is shutting the service down. In shutting down the service, Katzenberg plans to return as much capital as possible to investors while employees will be laid off and paid a severance.