4 quick bites and obituaries on Quibi (RIP 2020-2020) – TechCrunch
A new entry into the biggest startup collapses of all time
In memory of the Quibi’s death, here’s a brief post from four of our writers who have come together to discuss what we can learn from Quibi’s incredible, instantaneous, multi-billion dollar failure.
Lucas Matney examines what Quibi’s potential was and how he missed the mark in the media. Danny crichton explains why billions of dollars in venture capital funding is not enough in competitive markets like video. Anthony Ha discusses the crazy background of Quibi and our interview with the company earlier this year. And Brian heating examines why constraints are not advantages in new products.
Lucas Matney: a deadpool company even before its launch
There will be dozens of autopsies on Quibi, but the point is, there have been dozens of autopsies written on Quibi before it even launched. The idea was to be kind, bold, although it was also clear to most people who weren’t personal friends with founder Jeffrey Katzenberg that it was doomed from the start.
Quibi’s death is an important moment for streaming, in large part because it is a fairly strong rebuke from services trying to bolster the Netflix model by focusing only on high-priced original content. I think Quibi made several mistakes, but the most relevant may relate to a lack of flexibility in vision.
The startup insisted that all of its titles were uniquely mobile, high production value, and leveraging the power of Hollywood stars when they probably could have succeeded by keeping a closer eye on the kind of fast-paced content that succeeds. elsewhere. Snap has found success with Discover after years of trying, and there’s room for a dedicated player here, but Katzenberg has tried to level up by throwing checks at his friends and not doing the hard work. to track down emerging trendsetters in the designer world.
There are other lessons here that apply to other streaming newcomers like Apple. To know that creating a successful TV show is difficult and buying a successful TV series is easier if you already have the money. Quibi and Apple TV + both launched with plenty of new series and no libraries of beloved legacy content for users to spend time digging. There are so many good things already. Apple changed its strategy here, but Quibi got into a box and probably couldn’t afford to play here once his mistake was made clear.
Quibi shows how Hollywood’s upheaval by streaming wars has likely overshadowed reason at this point. Gamers like Apple don’t belong here, and there’s just too much money poured into original content that loosely fits the Hollywood mold.
Netflix stock is down 7% today, after yesterday’s profits, growth has slowed. With HBO Max, Disney +, Peacock, and Apple TV + all launched in the past 12 months, the streaming market cut is overflowing. And while I don’t think a Quibi death signals the end of innovation here, I do think the market is ready for consolidation in 2021.