If you've never heard of Quibi, the mobile card-shaped video site of former HP CEO Meg Whitman and Hollywood heavyweight Jeffrey Katzenberg started, you're probably not alone.
The service has not even launched yet, and it is not meant to be for another year. But Quibi, called "fast bite" for the types of easy digestible video content it aims to produce, plans to raise another $ 1 billion, in addition to the $ 1 billion already available to get its service properly funded from getting out of the ground , according to a report this Information .
The instantaneous figure is on the surface a little stupid for a service that has not yet been launched and does not sport a brand that rolls off the tongue as neatly as Netflix (or, you know, at all). But Quibi's founders seek out as much as $ 2 billion in funding illustrating how seriously a business must be to take on as streaming platforms like Netflix and traditional entertainment conglomerates like Disney ̵
Last year, Netflix spent $ 12 billion to acquire and produce content for its platform and plans to spend as much as $ 15 billion this year according to the company's fourth quarter income statement last year. Amazon, on the other hand, works with massive adjustments by Lord of the Rings and The Wheel of Time with the former who potentially consolidate the largest budget in television history.
Meanwhile, Disney puts an overwhelming level of investment in its upcoming Disney + streaming service and prizes it during the Netflix introductory level, reserving Avengers: Endgame 's streaming launch for the platform and putting quite a lot on each part of the company's colossal entertainment apparatus to work on producing new series and movies that can serve, including Lucasfilm with a new trilogy of Star Wars movies from Gamne of Thrones showrunners David Benioff and DB Weiss. Disney has also this week acquired Comcast's stake in Hulu, giving it full control over another platform that it can run its original content.
What does Quibi have? Not much, at least in comparison to the seemingly endless wave of Netflix Originals, Disney's Marvel properties and Star Wars, and Amazon's Ring Lord adaptation. That is precisely why Whitman and Katzenberg seem to intend to raise so much money. Without big budgets, Quibi will never get the names needed to attract viewers or future talents. So far, we know that the company has registered appreciated director Guillermo del Toro and original Spider-Man trilogy director Sam Raimi to produce new content. The service also has a greenlit series exploring the story of Snapchat and its founder and CEO Evan Spiegel, similar to Aaron Sorkin's Social Network .
But whether Quibi will take off is an open question. Card-shaped video is an unknown format for mobile, especially after the disaster that was Verizon's Go90, which burned through $ 1.2 billion before Verizon closed it last year. Snap has also had a tough go of competing in the mobile camcorder with the Discover initiative.
If it is not user-produced, as it is on YouTube and Twitch and TikTok, card-shaped video like the type Quibi may want to produce, which would be the video for 10 minutes or so, may not catch on with younger mobile users, even whether it is of high quality in nature and produced by big Hollywood names. But the possibilities of replicating the success of streaming video services seem too tempting for Whitman and Katzenberg to ignore. It can only cost $ 2 billion in investor money to find out if the duod can beat gold where so many others have knocked out.