What does it take to launch a media company in 2020? Better yet, what does it take to launch a media company that is attempting to create a new type of content in the crowded streaming environment? Lots of money, clearly. And probably, incredible leadership. At least, that’s what you hope for. In the case of Quibi, the money was never a question (the start-up streaming platform raised more than $1.75 billion), but some have begun to wonder if the leadership is up to the task of making “quick bite” content work.
In a new profile from Vulture, the saga of Quibi is detailed in great detail, including new interviews with founder Jeffrey Katzenberg and CEO Meg Whitman. And as we’ve seen in other interviews, the confidence from the two leaders at the streaming platform is off the charts, even when the data seems to show that Quibi is in the middle of a freefall with no parachute.
Perhaps the most interesting comment in the entire profile comes from Whitman, the CEO of Quibi and the woman that is leading a media company that aims to attract Millenials and other people that crave little 7 to 10-minute episodic content on their mobile device. You would assume that she has her finger on the pulse of what this audience desires, right? Well, maybe not.
When asked what her favorite shows are right now, the CEO replied, “I’m not sure I’d classify myself as an entertainment enthusiast.”
Pressed further, Whitman did offer one example of a show she really enjoys.
“‘Grant,’” she said. “On the History Channel. It’s about President Grant.”
As for how well Quibi is doing right now, it would appear that everything is going pretty terribly, to be quite honest. Vulture says that, as of early July, over 5 million phones had downloaded the Quibi app. Unfortunately, only 1.5 million of those downloads resulted in a registered user. And as is industry standard, it appears that third-party analysts say that only 33% of the people who registered for the 90-day free trial are expected to actually stay subscribed and pay money for the service. That means, Quibi is looking at roughly 500,000 paid customers. Ouch.
“No question, we’ve launched at a difficult time,” Whitman explained, referencing the COVID-19 pandemic and the recent civil unrest.
“I would say things are going really well,” Katzenberg said.
As we begin to learn more and more about the Quibi launch, it’s becoming crystal clear that the platform is not on the right track and could be in trouble. Thankfully, that huge bank account is likely going to keep it afloat for the foreseeable future. But with numbers like this and a self-admitted person who doesn’t watch much entertainment leading the company, it’s easy to grow concerned.
