Hollywood-backed Quibi thinks you’ll pay for its video bites

Key details for Quibi:
1) Quibi is short for “quick bites”
2) Launching April 6th
3) The target audience is 25-35-year-olds
4) $1.4B in capital raised
5) 230 employees

Key details for Quibi revenue model:
1) $5/month w/ ads; $8/month without ads
2) 1 pre-roll ad per episode (<5m video = 10s ad; 5-10m video = 15s ad)
3) 2.5m of advertising per hour
4) 20M subscribers by 2024
5) 75% of users will have ad-supported tier
6) They are seeking $15-25M upfront advertising commitments from companies such as P&G
7) $150M+ in upfront ad commitments

Quick math on Quibi advertising:
1) 20m paid users by 2024
2) 50% w/ ads
3) 15m paid users w/ ads
4) 2.5m of advertising per hour
5) $35 CPM for 15s ad
6) 10 15s spots/hour
7) $0.40 in ad revenue/hour
8) $665M revenue from advertising
9) $44.33/user/year in ad revenue
10) $3.69/user/month in ad revenue
11) 127 hours/year of viewing w/ ads/user
12) 11 hours/month of viewing w/ ads/user

Key details for Quibi content:
1) 7-10m per episode
2) 7K pieces of content at launch
3) 25+ episodes added daily
4) $100K/minute average development cost w/ a maximum of $6M/hour

Worth the time: Quibi is Offering Something Impressive, But Does Anyone Want It? h/t: Lucas Quagliata (a SOTS reader)

Video: Quibi streaming mobile video service raises $400 million ahead of launch

More: Quibi unveils “Turnstyle,” its flagship mobile video format

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