Quibi Looking To Sell According To Reports
The global coronavirus pandemic has been a boon for streaming services, but there have been some of them that have not been as lucky. One such streaming service is Quibi, which today has announced plans of selling itself.
Variety reports that a potential sale is in the cards for the mobile subscription television startup founded by film producer Jeffrey Katzenberg. When it first launched, Quibi featured original shows from several A-list stars such as Jennifer Lopez, Idris Elba, Chrissy Teigen, Issa Rae, and Steven Speilberg.
A number of big entertainment companies were also attached as investors, specifically ITV, Disney, MGM, NBCUniversal, Lionsgate, Sony Pictures Entertainment, WarnerMedia, and Viacom.
But as Deadline points out, Quibi has been unable to increase its subscriber base during the lockdowns brought about by the global coronavirus pandemic.
Unlike similar apps like Snapchat or TikTok. Quibi only rang up 4.5 million app downloads and 1.6 million subscribers Rather than have it give them a boost, Quibi founder Katzenberg and CEO Meg Whitman have labeled COVID-19 as a “brick wall” to the growth of the app.
Aside from the COVID-19 “brick wall,” Quibi has also had to deal with a lawsuit filed by Eko, an online platform that alleged Quibi’ Turnstyle interface is powered by technology stolen from them. Quibi has also suffered from senior-level staffers leaving it.
The question now is whether anyone will find Quibi attractive enough to purchase, especially since it looks even more unimpressive when put beside other subscription streaming services like Disney+ or Netflix.
Netflix, for instance, has seen its stock prices reach all-time highs as the global coronavirus pandemic continues to rage. Just last month, the stock price for Netflix closed at $547.53, with the price going as high as $549.04 during the trading day.
The increase came after a Piper Sandler survey revealed that 41 percent of 1000 Americans surveyed would continue with their Netflix subscriptions even after the lifting of lockdown brought about by the global coronavirus pandemic.
Respondents of a separate Piper Sandler survey also revealed that a majority of Netflix subscribers would be okay with a future price increase and would not mind absorbing it.
With the global coronavirus pandemic not looking to slow down anytime soon, it looks like the future is not going to be bright for Quibi. According to the Centers for Disease Control and Prevention’s update for Sept. 21, there are now 6,786,352 confirmed COVID-19 cases in the United States. The number of people that have died from COVID-19 is now at 199,024.