August 6, 2020
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.
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.
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.