{"id":8604,"date":"2019-02-19T18:43:03","date_gmt":"2019-02-19T23:43:03","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/can-short-form-video-sustain-a-new-platform-quibi-believes-it-can\/"},"modified":"2019-02-19T18:43:03","modified_gmt":"2019-02-19T23:43:03","slug":"can-short-form-video-sustain-a-new-platform-quibi-believes-it-can","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/can-short-form-video-sustain-a-new-platform-quibi-believes-it-can\/","title":{"rendered":"Can short form video sustain a new platform? Quibi believes it can."},"content":{"rendered":"<figure id=\"attachment_8603\" aria-describedby=\"caption-attachment-8603\" style=\"width: 412px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/5c411502c8e76f1a4e1fd0d9_LOGO-FOR-MICHAEL-COMPRESSED.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8603\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/5c411502c8e76f1a4e1fd0d9_LOGO-FOR-MICHAEL-COMPRESSED.png\" alt=\"\" width=\"412\" height=\"537\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/5c411502c8e76f1a4e1fd0d9_LOGO-FOR-MICHAEL-COMPRESSED.png 780w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/5c411502c8e76f1a4e1fd0d9_LOGO-FOR-MICHAEL-COMPRESSED-230x300.png 230w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/5c411502c8e76f1a4e1fd0d9_LOGO-FOR-MICHAEL-COMPRESSED-768x1000.png 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/5c411502c8e76f1a4e1fd0d9_LOGO-FOR-MICHAEL-COMPRESSED-461x600.png 461w\" sizes=\"auto, (max-width: 412px) 100vw, 412px\" \/><\/a><figcaption id=\"caption-attachment-8603\" class=\"wp-caption-text\">[1]<\/figcaption><\/figure>\n<p lang=\"en-CA\" style=\"margin: 0in;font-family: Calibri;font-size: 11.0pt\">Quibi will soon be launching their innovative new platform to deliver high quality short form video content to users. In July of 2018 the Quibi team announced they raised a one billion dollar series A round that included Alibaba and all 6 (now 5) major Hollywood studios as investors [2]. This ambitious blending of Silicon Valley and Hollywood is being led by two of the most successful members of each community with Meg Whitman [CEO Ebay 1998-2008, CEO HP\/HPE 2011-2018][3] spearheading the technology and Jeffrey Katzenberg [Chair The Walt Disney Studios 1984-1994, Co-Founder &amp; Chairman of Dreamworks SKG\/Dreamworks Animation 1994-2017][4] bringing a career of media expertise.<\/p>\n<p><figure id=\"attachment_8608\" aria-describedby=\"caption-attachment-8608\" style=\"width: 198px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/MW.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8608\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/MW.jpeg\" alt=\"\" width=\"198\" height=\"198\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/MW.jpeg 200w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/MW-150x150.jpeg 150w\" sizes=\"auto, (max-width: 198px) 100vw, 198px\" \/><\/a><figcaption id=\"caption-attachment-8608\" class=\"wp-caption-text\">Meg Whitman [3]<\/figcaption><\/figure><figure id=\"attachment_8607\" aria-describedby=\"caption-attachment-8607\" style=\"width: 198px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/JK.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8607\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/JK.jpeg\" alt=\"\" width=\"198\" height=\"198\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/JK.jpeg 500w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/JK-150x150.jpeg 150w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/02\/JK-300x300.jpeg 300w\" sizes=\"auto, (max-width: 198px) 100vw, 198px\" \/><\/a><figcaption id=\"caption-attachment-8607\" class=\"wp-caption-text\">Jeffrey Katezenberg [4]<\/figcaption><\/figure>&nbsp;<\/p>\n<p lang=\"en-CA\" style=\"margin: 0in;font-family: Calibri;font-size: 11.0pt\">Quibi will be a short form content video platform with several key differentiators from other digital video companies. Like YouTube, Quibi will be a platform that hopes to connect an ever growing user base with many producers of content and a network of advertisers in a virtuous cycle that makes the platform more valuable to each side with each additional participant. Quibi intends to differentiate itself from YouTube by supporting a much higher quality product than currently exists on the YouTube platform (up to $6 million per episode [5]). On the other end of the spectrum they intend to differentiate themselves from Netflix by focusing on the building of a multi-sided platform rather than simply controlling and providing content.<\/p>\n<p lang=\"en-CA\" style=\"margin: 0in;font-family: Calibri;font-size: 11.0pt\">Some innovative pieces of Quibi&#8217;s planned model:<\/p>\n<ul style=\"margin-left: .375in;direction: ltr;margin-top: 0in;margin-bottom: 0in\" type=\"disc\">\n<li style=\"margin-top: 0;margin-bottom: 0;vertical-align: middle\"><span style=\"font-family: Calibri;font-size: 11.0pt\">Contrary to the current trend in media Quibi will not own content in perpetuity, for all content developed for the Quibi platform the rights will revert to the content creator after a set period of time (7 years for the original content, 2 years for a repackaging of the content) [2]<\/span><\/li>\n<li style=\"margin-top: 0;margin-bottom: 0;vertical-align: middle\"><span style=\"font-family: Calibri;font-size: 11.0pt\">Quibi is putting a large emphasis on developing a completely integrated technology stack for the new native short form video player, believing that there is room to distinguish themselves on user experience from the current standards in digital viewing<\/span><\/li>\n<li style=\"margin-top: 0;margin-bottom: 0;vertical-align: middle\"><span style=\"font-family: Calibri;font-size: 11.0pt\">Quibi is willing to invest a large amount of money to generate &#8220;superstar&#8221; backed content with people from Guillermo Del Toro to Steph Curry signed on to create content, this is necessitated by the challenge that there is no existing library of content to purchase [5]<\/span><\/li>\n<\/ul>\n<p lang=\"en-CA\">\n<p lang=\"en-CA\" style=\"margin: 0in;font-family: Calibri;font-size: 11.0pt\">Quibi is also taking an interesting approach to value capture. While the team has not confirmed the exact details of a value capture plan, Quibi will launch with a two tier pricing structure to consumers. Both tiers will involve a monthly fee (most likely lower than the $9.99 benchmark Netflix has established) with one tier servings ads and one tier being advertisement free [2]. This is a particularly interesting choice given that a paid subscription may limit their ability to quickly add users and increase the overall value of the platform. This decision will also require Quibi to continue to deliver content their users want to view, as Quibi will only own content rights for a limited time period combined with a monthly fee driving a higher risk of churn (relative to YouTube). These two risk factors could create a negatively reinforcing cycle that may quickly damage the platform.<\/p>\n<p lang=\"en-CA\">\n<p lang=\"en-CA\" style=\"margin: 0in;font-family: Calibri;font-size: 11.0pt\">Quibi is an interesting, and expensive, bet on a content platform that will have to compete with very entrenched players; however, their content creator friendly strategy, technology pedigree, ability to garner Hollywood support, and extremely successful founders will certainly make Quibi an innovative platform to watch.<\/p>\n<p><strong>References<\/strong><\/p>\n<p style=\"margin: 0in\"><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">[1] <\/span><span lang=\"en-US\" style=\"font-family: Calibri;font-size: 11.0pt\">&#8220;Quibi&#8221;. 2019.<\/span><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">\u00a0<\/span><span lang=\"en-CA\" style=\"font-style: italic;font-family: 'Open Sans';font-size: 9.75pt;background: white\">Quibi.Com<\/span><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">. <\/span><a href=\"https:\/\/www.quibi.com\/\"><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">https:\/\/www.quibi.com\/<\/span><\/a><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">. Accessed February 18, 2019.<\/span><\/p>\n<p style=\"margin: 0in\"><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">[2] <\/span><span lang=\"en-US\" style=\"font-family: Calibri;font-size: 11.0pt\">Todd Spangler. 2019. &#8220;Jeffrey Katzenberg\u2019S \u2018Newtv\u2019 Startup Closes $1 Billion, All Major Studios Among Investors&#8221;.<\/span><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">\u00a0<\/span><span lang=\"en-CA\" style=\"font-style: italic;font-family: 'Open Sans';font-size: 9.75pt;background: white\">Variety<\/span><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">. <\/span><a href=\"https:\/\/variety.com\/2018\/digital\/news\/newtv-jeffrey-katzenberg-meg-whitman-1-billion-funding-1202897529\/\"><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">https:\/\/variety.com\/2018\/digital\/news\/newtv-jeffrey-katzenberg-meg-whitman-1-billion-funding-1202897529\/<\/span><\/a><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">. Accessed February 18, 2019.<\/span><\/p>\n<p lang=\"en-CA\" style=\"margin: 0in;font-family: Calibri;font-size: 11.0pt\">[3] <a href=\"https:\/\/www.linkedin.com\/in\/megwhitman\/\">https:\/\/www.linkedin.com\/in\/megwhitman\/<\/a>. Accessed February 18, 2019.<\/p>\n<p lang=\"en-CA\" style=\"margin: 0in;font-family: Calibri;font-size: 11.0pt\">[4] <a href=\"https:\/\/www.linkedin.com\/in\/jeffrey-katzenberg-4b3b47123\/\">https:\/\/www.linkedin.com\/in\/jeffrey-katzenberg-4b3b47123\/<\/a>. Accessed February 18, 2019.<\/p>\n<p style=\"margin: 0in\"><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">[5] <\/span><span lang=\"en-US\" style=\"font-family: Calibri;font-size: 11.0pt\">&#8220;Still A Year Away From Launch, Meg Whitman And Jeffrey Katzenberg\u2019S Quibi Keeps Adding Talent&#8221;. 2019.<\/span><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">\u00a0<\/span><span lang=\"en-CA\" style=\"font-style: italic;font-family: 'Open Sans';font-size: 9.75pt;background: white\">Techcrunch<\/span><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">. <\/span><a href=\"https:\/\/techcrunch.com\/2018\/12\/05\/still-a-year-away-from-launch-meg-whitman-and-jeffrey-katzenbergs-quibi-keeps-adding-talent\/\"><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">https:\/\/techcrunch.com\/2018\/12\/05\/still-a-year-away-from-launch-meg-whitman-and-jeffrey-katzenbergs-quibi-keeps-adding-talent\/<\/span><\/a><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">. Accessed February 18, 2019.<\/span><\/p>\n<p style=\"margin: 0in\"><span lang=\"en-US\" style=\"font-family: Calibri;font-size: 11.0pt\">&#8220;Inside Jeffrey Katzenberg&#8217;s Plan To Spend Up To $1B By 2025 On Programming For Quibi &#8211; Digiday&#8221;. 2019.<\/span><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">\u00a0<\/span><span lang=\"en-CA\" style=\"font-style: italic;font-family: 'Open Sans';font-size: 9.75pt;background: white\">Digiday<\/span><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">. <\/span><a href=\"https:\/\/digiday.com\/media\/inside-jeffrey-katzenbergs-pitch-to-investors-on-mobile-video-service-quibi\/\"><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">https:\/\/digiday.com\/media\/inside-jeffrey-katzenbergs-pitch-to-investors-on-mobile-video-service-quibi\/<\/span><\/a><span lang=\"en-CA\" style=\"font-family: Calibri;font-size: 11.0pt\">. Accessed February 18, 2019.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Quibi hopes it to use its superstar talent to compete with YouTube and Netflix.<\/p>\n","protected":false},"author":9852,"featured_media":8611,"comment_status":"open","ping_status":"closed","template":"","categories":[110,914,2384,1462,442],"class_list":["post-8604","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-digital-video","category-hollywood","category-quibi","category-studios","category-video","hck-taxonomy-organization-quibi","hck-taxonomy-industry-technology","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/dig-it-blog-post-assignment-i-innovative-platforms\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Can short form video sustain a new platform? 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