Quibi Testing Ad-Supported Service in Australia, New Zealand

Upstart mobile-centric subscription streaming video platform Quibi has reportedly begun offering free ad-supported service in Australia and New Zealand. The SVOD service launched April 6 in the United States from DreamWorks Animation founder Jeffrey Katzenberg and eBay founder Meg Whitman.

With The Wall Street Journal in June reporting Quibi would generate less than 2 million paid subscribers by April 2021, the platform is apparently trying AVOD to jumpstart consumer traction. The service had projected 7.4 million paid subs after one year of operation.

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Quibi costs $4.99 monthly in the U.S. with advertising; $7.99 without ads. The AVOD trial is reportedly being rolled out on a market-by-market basis.

AVOD has gained mainstream adoption following high-profile corporate acquisitions of Pluto TV by ViacomCBS and Tubi by Fox Corp., respectively. Pluto claimed 33 million average monthly viewers through June 30.

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Tubi in February claimed 25 million average monthly users, with users supposedly watching 163 million hours of content in December — which was an increase of 160% from the previous-year period.

Regardless, Quibi needs to gain user traction to justify nearly $1.7 billion in third-party funding. The platform has an unfortunate predecessor in Verizon’s short-lived go90 mobile-centric video streaming app that folded less than three years after launch, resulting in a $1 billion write-down by the telecom giant.

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