The Fall of '10-Minute OTT' Quibi... Service Ends After 6 Months

[Asia Economy Reporter Koo Chae-eun] Quibi, a paid short-form online streaming service (OTT) offering 5 to 10-minute videos, is shutting down after just six months. The biggest reason for its failure is identified as its inability to differentiate itself from existing platforms like Netflix and YouTube.

On the 22nd, major foreign media including The Wall Street Journal reported that Quibi, which launched its service last April, will cease operations after half a year. The Verge, citing these reports, pointed out that Quibi’s timing coincided with the COVID-19 pandemic when users were staying home longer, but its mobile-only OTT service failed to compete against existing free platforms like YouTube and TikTok.

Additionally, Quibi’s biggest weakness was its excessive copyright restrictions on content, which prevented consumers from actively sharing videos. Charging $5 per month in advertising fees also increased the burden on consumers. The service lacked a library function, mixing content randomly, and its ‘Turnstyle’ feature?which shows a wide screen when the smartphone is held horizontally and a first-person view when held vertically?became embroiled in patent litigation.

Quibi was a mobile video streaming service founded by Jeffrey Katzenberg, a giant in the animation industry who co-founded DreamWorks. From the start, it attracted attention as famous Hollywood directors such as Steven Spielberg and Guillermo del Toro expressed interest in participating. However, due to the lack of a differentiation strategy, paid subscribers rapidly declined, leading to the sale of the business and the termination of the service after six months.