What Is Jeffrey Katzenberg’s Quibi All About, and Why Should You Care?
Quibi is set to launch its mobile-focused streaming video service on 04/26/2020.
Key details for Quibi revenue model:
1) $4.99/month w/ ads; $7.99/month without ads
2) 1 pre-roll ad per episode (<5m video = 10s ad; 5–10m video = 15s ad)
3) 2.5m of advertising per hour
4) 20M subscribers by 2024
5) 70% of revenue from subscriptions; 30% from advertising
6) They are seeking $15–25M upfront advertising commitments from companies such as P&G
Quick math on Quibi advertising:
1) 20m paid users
2) 50% w/ ads
3) 10m paid users w/ ads
4) 2.5m of advertising per hour
5) $35 CPM for 15s ad
6) 10 15s spots/hour
7) $0.40 in ad revenue/hour
8) $665M revenue from advertising
9) $66.50/user/year in ad revenue
10) $5.54/user/month in ad revenue
11) 190h/y of viewing w/ ads/user
12) 15.8h/m of viewing w/ ads/user
Key details for Quibi content:
1) 7–10m per episode
2) 7K pieces of content at launch
3) 25+ episodes added daily
4) $100K/minute average development cost w/ a maximum of $6M/hour
Quote from Jeffrey Katzenberg — Founder @ Quibi:
“I’m going to continue to believe, and argue, and preach that Quibi is not a substitute or a competitor for television…Our [service] is exclusively about what you do from 7 a.m. to 7 p.m. on your phone. And what you’re doing today, if you’re in our core demographic of 25- to 35-year-olds, is you’re actually watching 60–70 min of YouTube, Facebook, Instagram, and Snapchat. That growth is now a well-established consumer habit that Quibi is sailing into.”
Podcast: Awesomeness’ Rebecca Glashow: Go90 didn’t have a clear identity as Quibi does
More #1: Katzenberg and Whitman: Hollywood’s New Odd Couple
More #2: We Hate to Quibi-le, But You Might Want to Bet Against Katzenberg This Time
