- State of the Screens
- Posts
- What Is Jeffrey Katzenberg’s Quibi All About, and Why Should You Care?
What Is Jeffrey Katzenberg’s Quibi All About, and Why Should You Care?
Michael Beach
June 19, 2019
Quibi is set to launch its mobile-focused streaming video service on 04/26/2020.
Key details for Quibi revenue model:
1) $4.99/month w/ ads; $7.99/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) 70% of revenue from subscriptions; 30% from advertising
6) They are seeking $15–25M upfront advertising commitments from companies such as P&G
Quick math on Quibi advertising:
1) 20m paid users
2) 50% w/ ads
3) 10m 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) $66.50/user/year in ad revenue
10) $5.54/user/month in ad revenue
11) 190h/y of viewing w/ ads/user
12) 15.8h/m 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
Quote from Jeffrey Katzenberg — Founder @ Quibi:
“I’m going to continue to believe, and argue, and preach that Quibi is not a substitute or a competitor for television…Our [service] is exclusively about what you do from 7 a.m. to 7 p.m. on your phone. And what you’re doing today, if you’re in our core demographic of 25- to 35-year-olds, is you’re actually watching 60–70 min of YouTube, Facebook, Instagram, and Snapchat. That growth is now a well-established consumer habit that Quibi is sailing into.”
Reply