Meg Whitman, a veteran tech industry practitioner, says she has recently become increasingly confident that Quibi, the streaming video start-up she founded, was founded in April last year. Quibi, which has raised $1 billion, said Wednesday that it has raised $400 million from investors who have not been named, and that money will be used to pay for content and marketing.
“We are very confident. Whitman said in an interview during the Consumer Electronics Show (CES) in Las Vegas. “Now that we’ve got real content on a real app, I’m definitely more confident than I was two years ago. ”
Quibi’s goal is to sell subscriptions to “millennials” and provide short video content for less than 10 minutes. The company is chaired by production mogul Jeffrey Katzenberg, while investors include big studios such as Disney and Warner Media.
The company also revealed that it is partnering with Google to use the technology giant’s technology to help ensure Quibi’s streaming video delivers a seamless experience for users. In addition, Quibi has partnered with T-Mobile, which provides wireless communications services to its customers that bundle Quibi applications. Quibi has an ad service for $4.99 a month and a monthly fee of $7.99 for a non-advertising service.
Many in the industry see Quibi as a gamble. The success of this service could dramatically change the way high-quality content products are distributed. Quibi offers not long stories, but short chapters that make it easier for users to watch on their mobile phones on the go. But at the same time, the company is also at risk of unlikely success. Other companies, including Verizon’s go90 platform, have tried to sell paid content to mobile phone users, but have failed because they can’t attract big enough audiences to attract advertisers.
But Quibi says there is demand for its services as people spend more time on their phones. On free-to-air platforms such as TikTok, there is a surge in user interest in mobile-made content, but these platforms rely on user-made content. Quibi focuses on high-quality content production, which costs up to $6 million an hour. Whitman believes that if users watch at least three Quibi videos a day, it may be enough to encourage them to continue using the service.
Some analysts think this could be a challenge, as many streaming video services for mobile phones are free. But Quibi executives counter that the company’s content is designed specifically for mobile phones.
Mr Whitman said that while Quibi was not currently profitable, it had a clear profit path. “We’re happy to build and run this company, and maybe one day it’ll go public,” she said. “