Quibi is in advanced negotiations to sell its content catalog to Roku Inc.,
ROKU -1.98%
according to people familiar with the matter, as the short-form streaming service ends its operations after an unsuccessful execution.
Quibi, founded by film mogul Jeffrey Katzenberg, raised $ 1.75 billion with an ambitious plan to develop cutting-edge content for mobile phones. But the service, launched in April, never gained momentum and Quibi said in October that it was ending.
Roku, which sells the most popular streaming media player in the United States, is aggressively investing in content with its own advertising application, the Roku Channel, which offers movies and programs produced by other companies. An agreement with Quibi would give Roku an exclusive schedule list.
In the terms that the companies discussed, Roku will acquire the rights to the Quibi library, people familiar with the matter said. The financial terms of the proposed agreement could not be learned. Agreement negotiations can still fail.
Quibi’s shows, with episodes under 10 minutes long, feature stars like Anna Kendrick, Liam Hemsworth and Sophie Turner. The programs include “Most Dangerous Game”, a human hunting program, “Dummy”, a talking sex doll series, and “Murder House Flip”, a fusion of home reform programming and real crime programs.
Quibi has entered into agreements with producers that allow Quibi to exhibit its shows in its service for seven years. Some of the contracts suggest that the content cannot be streamed on other platforms, said some people familiar with the terms of the agreement. A person familiar with Roku’s view said the terms of the contract would not prevent the company from showing the content of its service.
Write to Amol Sharma at [email protected], Benjamin Mullin at [email protected] and Cara Lombardo at [email protected]
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