A new report in The Wall Street Journal indicates that Jeffrey Katzenberg’s mobile streaming platform Quibi is shutting down after six months of struggles and failing to amass either strong subscription numbers or a buyer to keep them afloat.
According to the report, Katzenberg and CEO Meg Whitman called an investor on Wednesday to confirm that, upon further review and advice from an outside restructuring firm, the service will shut down as the board of directors seek to cut their losses.
Since then, Katzenberg and Whitman have confirmed to other outlets like Variety that they intend to “wind down its business operations and initiate a process to sell its assets”.
It was added that “the changed industry landscape and ongoing challenges, it was clear that the business would not be able to continue operating for the long-term on a standalone basis.” The remaining funds it has “will be returned to its investors as specified in the company’s operating agreement.”
Unlike most streaming platforms or networks, Quibi owns none of its big-budget content. They hold seven-year licenses on their short-form series with the stipulation that content owners can assemble their shows and distribute them to other platforms after two years.
The mobile-only streaming platform launched just as people found themselves confined to their homes in the midst of the pandemic. It was only this week that the company finally got around to releasing TV apps for content viewing on TVs.
