Quibi was the biggest explosion of the streaming boom. But there is something Roku wants – more than 100 original programs.
Quibi, which announced it was closing six months after a highly praised launch, is in talks to sell its content to Roku, a maker of streaming devices with its own streaming app.
The deal is nearing completion, said a person familiar with the discussions, who was not allowed to speak publicly. Quibi and Roku declined to comment.
Started by Jeffrey Katzenberg and Meg Whitman, who raised more than $ 1.75 billion from leading Hollywood studios and other investors, Quibi was a quixotic attempt to capitalize on the streaming boom. Its programs, divided into portions of a maximum of 10 minutes, should be watched on smartphones.
The approach assumed that people wanted this kind of viewing experience to help them on their daily commutes or while they were in line for coffee, but the coronavirus pandemic meant that potential clients were out of their work routines. in transit when the platform went live in April.
Mr. Katzenberg blamed the pandemic for Quibi’s rapid demise, while others cited his unusual shape and some of his creative choices, including a show starring Emmy-winning actress Rachel Brosnahan as a character obsessed with his own golden arm.
Business and Economy
Still, Quibi won two Emmy awards in the short film category, for actors Laurence Fishburne and Jasmine Cephas Jones in the series “#FreeRayshawn”. Two of his other programs were nominated: “Most Dangerous Game”, starring Christoph Waltz and Liam Hemsworth, and a reinitialization of the comedy “Reno 911!”
That’s where Roku comes in. The company needs material for its Roku TV application. And Quibi, who is not yet dark, will soon have a lot of material that can go unnoticed.
Complicating the negotiations, which were initially reported by The Wall Street Journal, is Quibi’s unusual business strategy. Mr. Katzenberg and Ms. Whitman did not pursue ownership of the platform’s content, instead they purchased exclusive rights from the creators to broadcast their programs for seven years. The arrangement attracted producers, who maintained the right to resell the programs later to another service, such as Netflix. It is not clear how a sale would affect the rights of content producers.
Roku, known primarily for his easy-to-use streaming devices, generates nearly two-thirds of his revenue from his media division. Roku TV, a free streaming channel with advertising, offers movies and programs made by other companies, without significant programming from their own original content.
Despite the relatively low cost of digital platforms, streaming accounts are starting to increase as the digital media industry matures and expands. An average family only pays for three services at a time, and exclusive content in a free app is likely to attract an audience.
The latest entrant, Discovery +, a platform built on 55,000 hours of improvised shows, aired on Monday, arriving in a crowded field that includes, in addition to Netflix, NBCUniversal’s Peacock, HBO Max, Disney +, AppleTV + , CBS All Access (soon to be renamed Paramount +) and Hulu.
Roku became a streaming force by exercising his distribution power – he claims 46 million accounts – to raise his media business. After a long disagreement, Roku recently struck a deal with AT&T to offer the HBO Max service. Roku wanted more access to advertising inventory on the next AT&T ad-based streaming platform, as well as rights to Warner Bros. content.