Why is Quibi shutting down already? Here's what we know

It's official Quibi lasted about as long as one of its episodes

Quibi's founder, former DreamWorks SKG head Jeffrey Katzenberg, along with Quibi CEO and former eBay chief Meg Whitman, wrote in a statement directed toward investors, partners and employees that while the service was a great idea that introduced the "next generation of storytelling" to the world, they, "with an incredibly heavy heart", have made a decision to wind down the business. Katzenberg was a chairman of Disney Studios and the cofounder and CEO of Dreamworks, while CEO Meg Whitman was the former chief executive of HP. Quibi is also reportedly looking at potentially raising more money or going public by merging with a special-purpose acquisition company.

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Quibi, which debuted April 6, "was founded to create the next generation of storytelling", founder and board Chairman Jeffrey Katzenberg said in the announcement. "Although the circumstances were not right for Quibi to succeed as a standalone company, our team achieved much of what we set out to accomplish, and we are tremendously proud of the award-winning and innovative work that we have produced, both in terms of original content and the underlying technology platform".

Quibi's goal with short-form content was to "create a little bit of the water cooler effect", Whitman said at the time.

The Wall Street Journal reported the news earlier in the day.

Industry legends and stars from Steven Spielberg and Guillermo del Toro to Jennifer Lopez and Reese Witherspoon were among the stars who lined up to make movies and shows for the youth-focused, smartphone-only service. Quibi series were designed for on-the-go-viewing with episodes running less than 10 minutes.

Quibi planned to wind down operations and sell off its assets, according to the release.

Meanwhile Netflix has added 28.1 million paying subscribers so far this year, reporting this week that it now has slightly more than 195 million total subscribers.

The service did boast some unique content from big names in entertainment, but ultimately, that wasn't enough to save Quibi from drowning in a sea of streaming services that offer more content on more devices.

Quibi also had to compete for younger viewers' time with millions of free - often user-generated - videos hosted by YouTube, TikTok, Facebook and Instagram.



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