In 2020, the worldwide video streaming industry was estimated to be worth USD 50.11 billion. From 2021 to 2028, it is predicted to increase at a compound annual growth rate (CAGR) of 21.0 percent. Innovations in video quality, such as blockchain technology and artificial intelligence, are projected to drive market expansion. Editing, cinematography, voice-overs, scriptwriting, and a variety of other facets of video creation and upload are all aided by artificial intelligence. AI is used by several video streaming solution companies to increase video content quality. The appeal of such platforms over broadcast media, such as YouTube and Netflix, has risen dramatically in recent years. Furthermore, the rapid adoption of mobile phones as a result of the increasing popularity of social media platforms and other digital mediums for branding and marketing is expected to boost growth.

With almost 41% of the market share in 2020, the OTT-based sector accounted for the greatest revenue share. Thanks to a feature, OTT-based solutions distribute film and TV content over the internet without the need for customers to subscribe to traditional cable or pay-TV services. Furthermore, the category is predicted to develop significantly during the projection period, owing to the rising need for improved business process automation and complete broadband infrastructure availability. Hybrid monetization strategies, increased demand for digital original content, and content fragmentation due to intense competition are all emerging trends in OTT.

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Quibi, which stood for "Quick Bites," was a premium streaming service available only on mobile devices. The platform was designed for people on the go, no matter where they were. As a result, all of the shows ran between four and ten minutes and featured feature-length narratives spread out over a number of short segments. Quibi wanted to offer a more participatory viewing experience, similar to when Netflix published ‘Bandersnatch’, an interactive Black Mirror episode. There was no Wi-Fi connection or data coverage requirement to access the information because it was all downloaded.

Quibi was backed by several prominent names in the industry, it was founded by Jeffrey Katzenberg and Meg Whitman. Katzenberg was chairman of the board of The Walt Disney Studios from 1984 until 1994 before launching DreamWorks Studios. Katzenberg was the president of Paramount Studios before joining Disney. The Motion Picture and Television Fund, The Museum of Moving Image, Cedars-Sinai Medical Center, California Institute of the Arts, and The Simon Wiesenthal Center are all companies where Katzenberg serves as a board member. While on the other hand, Meg Whitman has been Chairman of the Board of Directors at Hewlett-Packard since July 2014, President and Chief Executive Officer since September 2011, and member of the Board of Directors since January 2011. Whitman formerly worked at eBay Inc. as President and Chief Executive Officer from 1998 to 2008. Whitman also serves on the board of directors of Procter & Gamble. 

Quibi raised over $2 Billion even before its launch. Several prominent names from Hollywood such as Chrissy Teigen, Lebron James, Dwayne Johnson, Reese Witherspoon, Chance the Rapper, Kevin Hart, Jennifer Lopez, Idris Elba, Zac Efron, Tina Fey, Liam Hemsworth had already signed up for the platform. With a star cast this diverse and backing by several industry leaders, Quibi was destined for success but something went wrong! What exactly? Let’s find out. 

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What Went Wrong:

• Marketing was something that Quibi couldn’t conduct efficiently, being a streaming platform the primary focus of Quibi’s advertisements should have been the content (Eg. Netflix) that it provided rather than the app’s functionality. 

• Quibi produced shows were not well received by the audience, Quibi launched shows with a runtime of under 15 minutes to keep it feasible for the mobile phone users, this had a diverse effect on the audience.

• Quibi offered just one paid model for the app, there was no free or premium model. People preferred the option to spend their time on Youtube and TikTok, the free alternatives to Quibi.

• Quibi did not invest in researching or pilot testing the concept with the audience, it worked on an assumption that the business model would be loved by the audience. 

• Quibi charged high prices that didn’t sit well with the audience, especially when they had free alternatives.

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Salient Learnings:

• Feedback is important: In a service-based industry, it is crucial to receive and implement feedback regularly, for an organization to succeed a company needs to ensure that there is a high customer satisfaction level. 

• Analyze your Competitors: Understanding how your competitors operate is essential for ensuring that you are properly prepared for the industry. A detailed examination of your competition will assist you in developing effective strategies.

• Research the Market: It is critical to research and analyze the market; any offer must resonate with the target audience or it will fail to achieve the desired results.