Short-video app Quibi said it is shutting down just six months after its early April launch, having struggled to find customers. Katzenberg was a chairman of Disney Studios and the cofounder and CEO of Dreamworks, while CEO Meg Whitman was the former chief executive of HP.
Following its launch, Quibi saw a slow start, which Quibi founder Jeffrey Katzenberg attributed to the pandemic.
Per TV Line, Quibi is "winding down the business and looking to sell its content and technology assets".
Quibi was created to be short-form-but, little did the company's founders realize, the business itself would be over in the blink of an eye.
"With the dedication and commitment of our employees and the support we received from our investors and partners, we created a new form of mobile-first premium storytelling", Mr Katzenberg said in an open letter to shareholders and users.
Liam Hemsworth starred in Most Dangerous Game alongside Christoph Waltz
Users were offered two subscription tiers: a $4.99 a month fee to watch content with ads, or a $7.99 a month fee to watch content without.
Recently, Katzenberg sought to sell Quibi to other industry giants including NBCUniversal, and the company Quibi hired a restructuring firm to evaluate the service's options, the Journal reported. "We were not able to do so", they wrote.
It barely kicked up any dust in Australia, but in the U.S. the hype train was steaming: stars such as Steven Spielberg, Jennifer Lopez, Reese Witherspoon and Lebron James signed on to contribute to making "Quibis". In the third quarter of 2020, Quibi reportedly reaches 710,000 subscriber households, down 300,000 from the second quarter.
Quibi - the streaming service that introduced Nish Kumar to America - is shutting down. As the coronavirus pandemic struck, most people were no longer commuting to work and therefore might have not been that interested in a mobile-only streaming service. Reports in recent days had indicated that an attempt was made to offload programming to NBCUniversal or Facebook, but it appears those deals failed to materialize as of today's announcement, perhaps in part because, the Journal notes, Quibi does not actually outright own numerous shows, instead having lured A-list talent with deals meant to revert rights to creators at some future point.
Unfortunately, Quibi arrived at probably the worst time.