Why Did the '10-Minute OTT' Quibi Lose to Netflix?

Short-form Video Trend... High Expectations
Strategy Failure, Sale Under Review

[Asia Economy Reporter Koo Chae-eun] Quibi, an online streaming service once touted as a rival to Netflix, is struggling. Due to intensified competition among short-form OTT platforms including TikTok and a failure to differentiate itself, the company is facing difficulties and is even considering a sale.

On the 23rd, The Washington Post cited Quibi's poor performance as a result of intensified competition with similar social media companies. Facebook, Instagram, Google, YouTube, and TikTok all offer short video services on the go, but Quibi failed to adopt a differentiation strategy.

One of Quibi's biggest weaknesses was the excessive copyright restrictions on content, which prevented consumers from actively sharing videos.

Additionally, charging $5 per month for ads increased consumer burden, which was also identified as a factor in its failure. Without a library function, content was mixed together, and the ‘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 lawsuits.

Meanwhile, Quibi, founded in August 2018, was created by Jeffrey Katzenberg, founder of DreamWorks, and Meg Whitman, former CEO of HP. From the beginning, it attracted attention as famous Hollywood directors such as Steven Spielberg and Guillermo del Toro expressed their intention to participate. Quibi popularized short-form content by focusing on brief videos around 10 minutes long, as its name, meaning ‘Quick Bites,’ suggests.

However, due to the lack of content and platform features, subscribers have rapidly declined, and the company is currently considering a sale.