It’s common knowledge that the April launch of Quibi didn’t go as well as the company had hoped. After a first week where the app was downloaded millions of times, the new streaming platform that focuses almost entirely on mobile viewing quickly plateaued and fell out of the Top 10 download lists on mobile devices. On iTunes, the app isn’t even amongst the top 50. Needless to say, for a new company that has gained more than $1 billion in funding, this type of mediocre launch amidst a crowded streaming playing field is not ideal. Now, it appears there are going to be some financial consequences for the higher-ups at the company.
READ MORE: Quibi Exec Blames “Everything That Has Gone Wrong” With Slow Streaming Launch On Pandemic
According to Deadline, although there are no layoffs being reported at Quibi at this time, some executives are already agreeing to pay cuts to help ease the pain of the launch. In a memo that was sent internally, Quibi founder Jeffrey Katzenberg and CEO Meg Whitman said that senior executives have agreed to take a 10% pay cut “because it’s the right thing to do.”
The memo added, “Nothing has changed since our last company meeting two weeks ago. Quibi is in a good financial position. As we said in that meeting, we will look for ways to tighten our belt. We are not laying off staff as a part of cost-saving measures. We’ve recently added a dozen new Quibi employees.”
The reasons for Quibi’s not-so-great launch has been discussed at length in various places. What it boils down to are a few simple problems. First, and perhaps foremost, the company launched its on-the-go, mobile-first streaming platform during a time when everyone was stuck at home. This is a problem that the leadership seemed okay with at first but quickly said was the wrong move after the results were less-than-favorable. Then you have the whole idea of a “quick bite.” The service is named Quibi due to the “quick bite” format of each program only running for seven to ten minutes in length, with films being spread over multiple episodes. This is an interesting idea, but something that wasn’t marketed as clearly as it should have been. And finally, there’s the content. Though some of the content is decent, you didn’t know it because there is a lot of subpar content drowning it out. Instead of curating a smaller list of products for launch (which admittedly didn’t go well for Apple TV+, but that’s a whole other can of worms), the service debuted with close to 50 programs, with the bad stuff overshadowing the hidden gems.
READ MORE: Quibi Releases Free Episodes Of ‘Most Dangerous Game,’ ‘The Stranger’ & More On YouTube
Quibi is available to download now and there is a pretty lengthy free trial if you haven’t already signed up. Though the launch and marketing for the new streaming platform haven’t been great, there is some quality content on the service. That is, if you’re okay with watching primarily on your mobile devices, as the service is only available to view on TVs if you have Apple Airplay capabilities, with Chromecast support coming sometime soon.
You can read the full memo below:
Good morning–
Many of you have already seen the NY Post’s Page Six story. The story was completely inaccurate. We are pleased with the performance of Fierce Queens; additionally, the talent compensation was utterly inaccurate. We are grateful for Reese’s continued support of Quibi.
We are proud of the work that Jim Toth and the Content team are doing every day. Their integrity and commitment to their work is unparalleled and we are fortunate to have them on our team. They have delivered compelling content that is working great with our audiences.
Nothing has changed since our last company meeting two weeks ago. Quibi is in a good financial position. As we said in that meeting, we will look for ways to tighten our belt. We are not laying off staff as a part of cost saving measures. We’ve recently added a dozen new Quibi employees.
And in regard to tightening our belt, our senior leadership team has volunteered to take a 10% pay cut because it’s the right thing to do.
We are excited about the future. As we shared in our most recent company meeting, the best is yet to come. We are confident in Quibi and the work that you are creating every day.
As the last several days have shown us, there are so many important challenges facing all of us, and we are thankful that we are all able to work together to support each other, and create a platform that can celebrate the diverse voices of our community.
Meg and Jeffrey