Quibi Revamps Programming After Rocky Start for Short-Video App

(Bloomberg) -- Quibi, the video startup founded by Hollywood mogul Jeffrey Katzenberg, is revamping its programming slate and keeping a close eye on costs after a tepid initial reception to its service, according to people familiar with the matter.

Quibi has decided not to renew several shows from its first wave of programs, including Idris Elba’s “Elba Vs Block.” It has discussed ways of retooling others, said the people, who asked not to be identified because the plans haven’t been announced. Quibi also has preemptively scrapped shows that were meant to be shot later this year.

The adjustments are part of an uneven start for a company backed by $1.8 billion and striving to stand out in a crowded field led by Netflix Inc., Amazon.com Inc. and Walt Disney Co. Designed for mobile phones, it has struggled to attract subscribers with much of the world stuck at home because of the coronavirus pandemic.

Quibi has added fewer customers than it hoped for since launching in early April. While Katzenberg blamed the global pandemic, he has conceded that many of its shows haven’t charmed viewers. That includes its so-called “daily essentials.” And none has become the type of breakaway success needed to distinguish the app in a crowded entertainment market.

One bright spot is most people who start watching a Quibi show typically finish the episode, a person close to the company said. The completion rate is more than 80%, higher than on other platforms, said the person. But that may not be much of a surprise since Quibi shows are less than 10 minutes long, and a Netflix episode can be more than an hour.

The focus on costs includes overtime and hiring, as Quibi tries to keep its operation lean, according to the person. A show like “Elba Vs Block” didn’t make sense as a multiseason program, said the person.

The rocky start is forcing executives to ponder its strengths. The initial audience for Quibi has been older and more female than executives anticipated, the people said. Two of the most popular shows have been “The Rachel Hollis Show,” a daily program hosted by the titular author and motivational speaker, and “Chrissy’s Court,” a courtroom comedy where “Judge” Chrissy Teigen resolves petty disputes. News programs from NBC have also found an audience.

Emmy Submissions

The company is submitting a number of shows for Emmy awards, including “Most Dangerous Game,” “Reno 911!” and “The Stranger.”

Quibi sorted its initial programs into three groups: movies broken into chapters; episodic unscripted programs; and daily essentials -- brief news updates that recur every day. Quibi ordered its initial batch of daily essentials for 26 weeks, or half a year. It told producers it would inform them as to whether their shows would be picked up for a second stint by mid-June. But Quibi has already moved to cancel certain programs.

A second wave of original series and daily essentials is scheduled for later this year. Quibi still plans to produce some of those shows, but is now reassessing its slate, said the people.

Quibi also is addressing an early complaint about the service -- that you couldn’t watch the shows on your TV. The app is being updated so that it isn’t limited to mobile devices.

Katzenberg and Chief Executive Officer Meg Whitman, a Silicon Valley veteran, said the app is designed to fill short, empty moments throughout the day, like the wait at the dentist’s office or a commute. Katzenberg said in an interview with the New York Times that lockdown conditions around the virus caused most of those moments to disappear.

But throughout the pandemic, its rivals have seen a surge in viewership. Bytedance, the owner of short-form video app TikTok, said it wants to hire 40,000 people in 2020 to keep up with demand. Quibi is also facing a slew of new streaming rivals, including NBCUniversal’s Peacock and AT&T Inc.’s HBO Max, as well as existing players Disney+ and Netflix.

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