With the streaming market in expansion, new competitors are bound to appear, each with its own competitive advantage. While the service itself isn’t due until April 2020, Quibi has been on the industry’s radar for some time now. The company was started by former HP CEO Meg Whitman and American film executive, Jeffrey Katzenberg.
Quibi is looking to enter the streaming market with an innovative service. While most available streaming services have focused on providing wider screen content with support on smaller ones, like smartphones and tablets, Quibi will target mainly mobile users. The company wants to produce videos under 10 minutes or so in length. For that, some well-known directors, like Guillermo del Toro or Sam Raimi, have already signed up to produce new content. Guillermo del Toro is responsible for box-office successes such as Hellboy, The Hobbit, and more recently, The Shape of Water. Sam Raimi is perhaps best known for his work in the Spiderman franchise.
Quibi aims to produce over 5,300-5,400 pieces of content per year in order to publish at least 100 videos every week. While the company has said it aims to grab 20 of the 70 minutes per day people spend watching short-form videos, it has mentioned that it doesn’t intend to compete with YouTube or other similar services.
The company already has $1 billion in its pocket, thanks to current investors including Disney, NBCUniversal, Sony, Viacom, and AT&T’s newly-rebranded WarnerMedia. However, Quibi is still looking to raise an additional $1 billion.
When it comes to subscriptions, customers will be able to opt from two plans. Quibi will have a $5 ad-supported subscription tier and an $8 ad-free tier. According to Digiday, the company expects advertising to account for 30% of revenue at 20 million subscribers, and 24.9% of revenue at 70 million subscribers.
While many might see Quibi as another player in the streaming services market, both Whitman and Katzenberg are reluctant to classify it as a competitor. Instead, they claim that Quibi will be an addition to those services. However, the company has a long battle ahead, as the launching of its service will coincide with Disney’s international launching of its new streaming service, Disney+. As the latter will still be reaping the benefits of being a novelty, Quibi risks being overlooked by the general public. Additionally, the company also faces the launching of Apple’s own streaming service, Apple TV Plus, which will happen during autumn of 2019.
It remains to be seen how Quibi will avoid being crushed by these newcomers. So far, it seems the only way to make it is to provide great and original content.
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