The short video app, Quibi, six months old announced it is shutting down its operations. The Short-video app Quibi was launched in April. It is shutting down because of the struggle to find the customers. On October 21, the company has said it is winding up its operations and plans to sell the company's assets.In a letter posted online top executives openly commented “Quibi is not succeeding".
Quibi is a short-video platform designed for people who were out and about to watch on their phones. The application is one of the new streaming services started to challenge Netflix over the past few years, most of them are part of tech and entertainment companies like Apple and Disney. Quibi is an contracted form of Quick Bites has raised $1.75 billion from investors including Hollywood players Disney, NBCUniversal and Viacom.The leadership position were hold by entertainment industry heavyweight Jeffrey Katzenberg and former Hewlett-Packard CEO Meg Whitman. Even with 90 day free trial the app failed to reach the people. The coronavirus made people to stay at home and various other short videos are in the internet. The app was launched at $5 per month, so that short videos can be watched without TV.
The reason for failures are stated as no strong hold business idea to be a standalone streaming service or may be the timing. An approximate of 9.6 million installations were made since its launch. The company said that liabilities will be paid off by the asset sale and whatever remains will be returned to the investors.