Yes, this is another article to add to the list of reports on Quibi’s underperformance. The short-form video streaming app has seen its fair share of struggles since launching this spring, and now new projections show Quibi will close the year with 30% fewer subscribers than it hoped for.
New reports project the Jeffrey Katzenberg app will reach just 2 million pay subscribers it’s first year based on current sign up trends. The streamer had originally projected to reach 7.4 million users by April 2021, a year after launch. But if signup rates continue as they are currently, the company will fall short of its goal by more than 5 million accounts.
Quibi had about 1.6 million active users reported in May, and about twice as many app downloads. But none of those are paying customers yet since the streamer launched with a 90-day free trial. Who knows how many users it will lose when viewers have to actually start paying money for the content ($4.99 for the lowest tier, $7.99 for ad-free.)
The quick bite streaming service has faced one obstacle after another during its short life-span but won’t go down without a fight. With advertisers looking to renegotiate deals with the service and Quibi caught up in legal issues around its turnstyle feature, budget cuts have been in order. In addition to putting layoff rumors to rest, Katzenberg and Whitman announced in the memo that senior leadership will be taking a 10% pay cut to cut down on costs.
The app has abandoned also its previous novelty concept of being mobile-only to allow casting to big screens. It’s also adapted to permit sharing content to popular outlets like Tik-Tok and Instagram to help spread its exposure.
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