October 27, 2020

Content Is King…Except When It’s Not

Tuesdays With ColemanYou likely heard last week’s story about Quibi’s decision to shut down later this year. Quibi is a streaming service focused on short-form video content to be consumed on mobile devices. It launched in April after 18 months of build-up, as founder Jeffrey Katzenberg and CEO Meg Whitman successfully raised $1.75 billion from investors and recruited an impressive array of partners to create original content for the platform.

Quibi fails

No matter how you look at it, Quibi has been a flop. Downloads of the app never came close to expectations, and while the company sold out its first year of advertising inventory generating $150 million, it was unable to convert a meaningful number of consumers who signed up for a free trial into paying subscribers. As of a few weeks ago, Quibi reportedly had about 500,000 subscribers paying $4.99 per month, pacing well below their target of seven million subscribers by the end of the service’s first year.

This blog post, however, is not about bashing Quibi. (To the contrary, Katzenberg and Whitman deserve a lot of credit for being forthcoming about their failure, most notably when they made a joint appearance on CNBC last Thursday.) It is also not a full post-mortem on what went wrong with Quibi; instead, I want to focus on what lessons we can apply from Quibi’s failure to the audio entertainment world.

Quibi CEO Meg Whitman and founder Jeffrey Katzenberg raised $1.75 billion from investors

Let’s start with what Quibi did right—it invested in creating world-class content. The company reportedly spent over a billion dollars on content creation; in fact, some of the content was strong enough that it garnered two Emmy awards and ten Emmy nominations overall. Furthermore, its user interface generally received positive reviews.

However, as we often see with podcasts, streaming services, and radio stations, having great content often is not enough for success. When appearing on ABC’s Good Morning America last week, IndieWire television editor Kristen Lopez summed it up perfectly, stating, “It’s not enough to have stars. It’s not enough to have original content. You need to be very aware of what the market will hold, what your audience is, and what they’re willing to pay. What are they watching? What are they talking about?”

You also need to build a brand. Despite all the hype and firepower around Quibi, awareness of the service paled in comparison to other streaming video platforms, including YouTube, TikTok, Snap, Netflix, Amazon Prime, etc. Even among those aware of Quibi, we suspect that few understood what Quibi was or at least didn’t see it as something meaningful to them.

This means that you can create a podcast with outstanding content, but if few people know about it or think of it as something that meets a need for them, your chances for success are limited. This also means that you can launch a streaming channel that has the most perfectly curated playlist of songs for fans of a particular genre, but if another brand already occupies that position, you likely won’t attract many listeners.

We see this phenomenon play out with radio stations as well. Too often radio programmers will listen to a station and decide they can offer the same format in a superior manner, with better music and stronger personalities. This may be completely true, but if the station with the theoretically inferior content owns a position in the minds of consumers, it is going to be very difficult to win such a battle.

Beyond the need for brand building, there is an additional lesson applicable to audio entertainment from Quibi’s demise—the importance of distribution. A lot has been written about Quibi’s timing; launching a mobile streaming service during a pandemic when people aren’t mobile certainly sounds like a recipe for disaster. But what is perhaps more important is the decision to make Quibi available only via mobile devices. In an age where consumers want the content they desire on an on-demand basis, this sounds like a short-sighted decision. You couldn’t watch Quibi content on your laptop or the big screen in your living room (although, paradoxically, Quibi announced its availability on Apple TV, Amazon Fire TV, and Google TV on the same day it announced its closure), which presumably made the service far less attractive to consumers than it could be otherwise.

Whether you work in radio, podcasting, or streaming, keep the lessons of Quibi in mind. It is commendable to create the very best content you can, but if you don’t put as much effort into building a brand around that content and make sure its distribution allows your audience to consume it how, when, and where they want to, you are only doing half of the job.

 

 

 

 

 

6 thoughts on “Content Is King…Except When It’s Not”

  1. Dave Mason

    I don’t recall seeing a lot of marketing about Quibi-anywhere. It would seem that a multi faceted approach to a product launch would have to include a full fledged marketing plan. Then again, what was the purpose? “Gone With The Wind” in 3 minutes? I’m not here to bash ’em either but it just seemed that someone sat there and told their group “people only have 3 minutes to view my stuff so let’s give it to them”. Is that really what people wanted ? If so the average podcast would be .. 3 minutes. Not 30, or 90 or 120. Didn’t seem like much of a plan for $4.99. Great content is great content regardless of its length. Need proof? Watch “Breaking Bad” again.

    1. Warren Kurtzman

      Thanks for your comment, Dave. I agree with you about the limited amount of marketing, but I’m not sure I agree that there isn’t a market for short-form video. One of Quibi’s problems was that they didn’t take into account the competition they already have in that area from YouTube and–especially–TikTok and Snap.

  2. Michaell Shishido

    I didn’t see much marketing for Quibi either. Maybe I’m not in their demo. You do bring up a hugely valid point in that they seemed to have failed at measuring the market and their competition. I just made a list for myself of all the streaming channels I pay any attention to, both free and paid. I had a hard time remembering what’s in my world of video consumption, let alone upstarts channels like Quibi. To bring it back to radio, for me this is just another lesson in product knowledge. Listeners do not care as much as we do. And if we want them to care, we need to market whatever we do like crazy just to get noticed.

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