Veterans of streaming services Netflix, Disney +, Hulu, YouTube and Tik Tok have an ambitious competitor - Quibi, which has offered mobile app with short video content to smartphone and tablet owners. The total investment in the new project is already $ 1.75 billion.
Quibi (short for Quick Bits) is set to fill its on-air grid with 175 original shows, spanning 8, 500 episodes of up to 10 minutes each. In essence, we are talking about streaming a small amount of content that will help users pass the time while waiting for a train or their turn at the bank. The competitive advantage that Quibi relies on is the ability to broadcast content both horizontally and vertically.
This strategy is not like what Netflix, for example, offers - lengthy content that is not suitable for watching on the go. To promote its project, Quibi is going to use the Hollywood "heavy artillery" in the person of Steven Spielberg, Reese Witherspoon, Liam Hemsworth and Jennifer Lopez.
Already at the start of the project, the company spends a lot of money on creating original content. According to Variety, this figure is up to $ 100, 000 per minute ($ 6 million per hour). At the same time, filmmakers and studios that provide their content to Quibi get back the right to their intellectual property after 7 years. And those who have divided their films and shows into small episodes can combine them back and distribute legally in two years.
The company has already started making money by selling advertising services for $ 150 million. For the rest, she will have to rely on subscribers. A monthly subscription with ads will cost $ 4.99, and without ads at $ 7.99.