When you’re on the road, you’ve got a billion quibi dead

There are two kinds of start-up companies: one is grass-roots start-ups, starting from scratch, relying on the fresh blood provided by investors; the other is born with a golden spoon, without lack of people and money. Quibi, a streaming media platform, obviously belongs to the latter. < p > < p > quibi has been shining since the founding team: Founder Jeffrey Katzenberg is the founder of DreamWorks and a Hollywood giant level producer; while CEO Meg Whitman was the CEO of eBay, HP and other companies, and was a senior manager in the technology industry. The two founders also launched their own contacts and brought in a large number of executives from Disney, Netflix and snapchat. The lineup is not luxurious. < / P > < p > with the support of such a team, quibi has obtained US $1.75 billion in financing before it goes online. The investors include Disney, Time Warner, Sony entertainment and other Hollywood factories, as well as Goldman Sachs, Alibaba and other first-line institutions. < p > < p > in April 2020, quibi was officially launched on the quibi platform, where famous Hollywood director Jill del Toro, actor Kevin Hart and actress Jennifer Lopez launched their own programs on the quibi platform. < / P > < p > such a star shining company looks promising. However, only half a year after the product was launched, it experienced many dilemmas, such as weak growth of users, query from advertisers, salary reduction of management team, patent litigation and so on. < p > < p > the founder of quibi, Katzenberg, has decades of production experience. He has personally experienced the rise of the TV era. He also believes that mobile phones will bring great changes to TV. He wants to “reinvent TV” in quibi. So, he aimed at the fragmented time of generation Z young people and enjoyed every 10 minutes of Hollywood blockbuster shows and shows on his mobile phone. < / P > < p > in addition to the video itself, quibi also promotes a black technology called turnstyle. For the same movie, the audience can choose to watch it horizontally or vertically on the mobile phone to experience different perspectives. Horizontal screen is panorama, vertical screen is close-up, seamless switching at any time, playback will not be interrupted. < / P > < p > some directors have developed special ways of playing, such as the thriller wireless. The horizontal screen plays smoothly. If the screen is vertical, the screen will switch to the main character’s mobile screen. The audience can watch the hero’s phone calls and send messages from the first perspective. < p > < p > quibi was downloaded by 300000 users on the same day when it was launched, which once ranked third in the Apple App store. But dreams always look beautiful. Who would have thought, the performance of the next few months gradually proved that almost every feature quibi was proud of was a pit. < p > < p > in content production, quibi benchmarked platforms such as Netflix, HBO and Disney +, and mainly promoted high-quality PGC. To this end, quibi signed up a large number of Hollywood A-level production teams and stars, and the most expensive episodes cost as much as $100000 per minute. The combination of wealth and intensive farming has brought quibi 10 nominations for the 2020 Emmy Awards and two trophies. < / P > < p > but the palace is so beautiful that users can’t buy it. So far, quibi has not produced popular content with topic degree. In fact, despite the high reward offered by the platform, good scripts still give priority to Netflix, HBO and other well-known platforms for distribution. After all, large platforms mean more exposure and attention, and the user base of quibi is insignificant in front of their 100 million class traffic. As a result, quibi is only a secondary choice for good creators, and behind the gags of A-level production, it may be just a second-rate script. < / P > < p > the production cycle of film and TV series and variety shows is long. In order to enrich the content library, quibi has found the old drama and news flash broadcast of the past years. Generation Z young people open quibi and look confused: you just show me this? Netflix and Youtube, doesn’t it smell good? < p > < p > quibi launched a three-month free trial at the beginning of its launch, with 1.5 million downloads in the first week. After the free period, users need to buy $4.99 or $7.99 per month. This move, smart users decisively leave quibi, without a trace of heartache. So far, quibi’s paid user conversion rate is only 8%. There is little suspense about the departure of < / P > < p > users. Comparing the subscription fees of other streaming media platforms horizontally, Netflix’s low configuration membership fee is $8.99, and Disney + has a minimum of $5.83. Although they are not cheap, the content richness on these platforms is far better than that of quibi, which makes 30% and 14% of users willing to stay after the trial expires. < / P > < p > why not take the route of free content + embedded advertising? Because there’s a lot of advertising on quibi. Since its launch, quibi has signed up 10 advertisers for one year. Each video is preceded by a 6-second, 10 second, or 15 second non skipping ad. If only relying on advertising profits, it will inevitably further increase the proportion of advertising, affect the viewing experience, for the new products that have not opened up the situation, it is more difficult to retain users. < / P > < p > if the content is not strong and the price is not user-friendly, the marketing team may be able to make a good plan for it. It’s a pity that quibi’s mystery operator missed a wave of traffic. For the sake of copyright < quibp >, it is forbidden to protect streaming media as well as other platforms. Press the screen capture key on the phone, and the screen will be black. Quibi’s product team received a lot of feedback about not being able to take pictures and share them. Three months later, quibi’s product team came up with a “magic trick”: long press the screen with your fingers, pop up the menu, and slide your fingers to the screenshot button. < / P > < p > although it is almost self defeating in social media communication, quibi has no weakness in other marketing channels. In order to match the launch of the product, quibi paid a lot of money to buy luxury time during the 2020 Academy Awards and super bowl. Unfortunately, the $120 million budget doesn’t cost much. < p > < p > according to statistics, the number of Oscar viewers in 2020 is about 23.6 million, a record low in history. Most of the audience are not the target audience of quibi, and the audience rating of 18-49 years old is only 5.3. < / P > < p > it is obviously better to put the “American Spring Festival Gala” Super Bowl. This time, however, quibi failed in terms of content creativity. Among the 62 advertisements for this super bowl, quibi ranked fourth from the bottom in terms of audience rating. What’s more embarrassing is that 70% of the audience thought that quibi was a takeout platform after watching the advertisement. < p > < p > marketing is an art of speaking and listening. It pays attention to saying the right words to the right people at the right time and in the right place, but quibi skilfully avoids the time, the place and the people. < / P > < p > when searching for quibi’s promotional materials, the keywords that appear repeatedly are the founder’s name, Hollywood star lineup, and black tech viewing, which are far less attractive to ordinary audiences than a set of cute pictures of Yoda baby. On Twitter and instagram, quibi sends stills and previews in isolation, with few interactionists and no online likes. < / P > < p > the growth of smartphone usage time and video consumption time is indeed an objective trend in recent years, but this does not mean that the products of “generation Z + fragmented time + short video in large production” are paid for by the market, and the three elements here are worth considering. Have the consumption habits and consumption levels of the generation < / P > < p > been matched on quibi? Today, with the popularity of talent culture, the attention of online celebrities may be no less than that of traditional movie and TV stars, but you can’t see the famous works of YouTuber on quibi. What do modern people do with fragmented time? Swiping INS, playing games, surfing twitter, listening to podcasts There are too many options to kill time. Even if the scope is narrowed to video streaming, there are also a lot of options such as youtube, tiktok, snapchat, etc. The differentiated value provided by quibi is not enough to shake the hearts of consumers. < / P > < p > Video consumers like short and medium sized videos produced in large scale? To some extent, yes, the success of Netflix and Disney + proves that the market has potential. < p > < p > however, quibi’s focus on mobile phones has led to a dead end. The audience is always willing to enjoy the excellent series with exquisite pictures on the large screen. However, quibi promoted the turnstyle technology in the early stage, and did not support multi screen viewing, which not only restricted the use of the scene, but also wasted a lot of carefully shot scenes. < / P > < p > the product and user portraits “screw up” each other, creating an embarrassing streaming app, which makes people doubt whether the quibi team has seriously studied the market demand. Katzenberg, who wanted to reinvent the TV, finally seemed to have just put the TV into his mobile phone. < p > < p > sitting in the La conference room, Katzenberg and Whitman have a lot of industry resources and sufficient funds, but they lack the understanding of “houlang”. The two men, who are over 60 years of age, have been far away from social media and short videos, relying on imagination to copy past experiences and ignore market feedback. Quibi used his failure to teach a lesson to the “old actors” who want to start a business. < p > < p > the two-year-old quibi has come to a fork in the road: seeking acquisition, listing spac, and financing more money. < p > < p > at the end of September, according to media reports, quibi was actively seeking an acquisition. Katzenberg also visited many enterprises, but the results were not good. It has made it clear that there are apple, Facebook, Warner and so on who have no intention of acquiring. < / P > < p > for buyers, except for more than $20 million in cash on account, the most valuable ones may be the turnstyle technology and product R & D team; as for the dramas and programs on the platform, since quibi does not own the copyright, it also allows the author to adapt and sell them to others in two years. On the contrary, if the cost can not be recovered within two years, then the hard won works will be very popular It may have been a wedding dress for someone else. < / P > < p > based on these adverse conditions, some analysts judge that if the quibi is sold successfully, the price is expected to be only 50 million to 100 million US dollars. < p > < p > the possibility of the survival of venture capital is even more remote. According to analysis, quibi will run out of funds next year, and needs to raise 1.8 billion US dollars before 2024. The timetable is quite tight. However, quibi’s current business model and user attraction are relatively weak, and new investors are not confident enough to enter the market. < / P > < p > on the other hand, most of the old investors hold a wait-and-see attitude, and it is not clear whether or how to follow up. What’s more, Katzenberg himself is “tired of this trial”, and I don’t expect to spend too much energy on financing quibi. Today, many media reported that quibi will be officially offline, and quibi also held a conference call with investors and employees on Wednesday afternoon to announce the news. < p > < p > from natural aura, high-profile appearance, star studded, to failure in the beginning, seeking to sell off, and finally hanging up, quibi may be the brightest meteor this summer. For those who want to, this period of ups and downs will also be a lesson worth remembering on the road of entrepreneurship or investment. < / P > < p > the elite team has capsized in the gutter, and repeatedly missed the opportunity to recover. This is not only surprising, but also a wake-up call to the founders of the enterprise: be alert to the path dependence on the past success, and always be sharp and humble in the face of the ever-changing market and users. Continue Readinggather and watch! Huawei P40 Pro evaluation: excellent mobile