In his biggest foray into original programming, Roku bought exclusive global distribution rights for Quibi’s portfolio, the recently closed mobile-only streaming venture led by Jeffrey Katzenberg.
The acquisition covers most of the Quibi library, but some daily news programs are not part of the package. A key attraction for Roku is talent, a list that includes Idris Elba, Kevin Hart, Liam Hemsworth, Anna Kendrick, Nicole Richie, Chrissy Teigen and Lena Waithe. The schedule includes titles like Most Dangerous Game, Mannequin and Murder House Flip.
Financial terms were not disclosed.
In an interview with Deadline, Roku VP of Programming Rob Holmes told Deadline that Quibi’s unusual rights flexibility will remain in place, with rights reversed after seven years. “We preserved everything that was in the existing agreements,” said Holmes. “We are excited about this. It’s great, high quality, talent and high quality content. “
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The program will be available free of charge from the end of this year. It will have advertising, as was the case with the $ 5 monthly Quibi service, and will be hosted on Canal Roku. The hub for premium and free streaming channels, including more than 150 free live linear offers, has become the mainstay of the company’s strategy since Roku launched it in 2017. In the fourth quarter of 2020, it was being seen by families representing a an estimated 61.8 million people, the company said, will double their reach by the end of 2019.
The agreement places a final punctuation mark on the Quibi experiment. Founded by Katzenberg and Meg Whitman with a notable starting capital of $ 1.75 billion, the mobile-focused streaming service had a noisy debut last April, but never gained momentum. Six months later, executives announced that it would be closed by the end of the year. The coronavirus pandemic did not help Quibi’s on-the-go premise, whose name is an abbreviation for “quick bites”, but his programs also received mixed reviews, although #FreeRayshawn got two Emmys.
“Hollywood’s most creative and imaginative minds have created innovative content for
Quibi that exceeded our expectations, ”said Quibi founder Jeffrey Katzenberg. “We are very happy
that these stories, from the surreal to the sublime, found a new home at The Roku
Channel.”
The financial terms of the deal, whose negotiations emerged last week, were not released. In the transaction, Roku acquired Quibi Holdings, LLC, the company that holds all rights to distribute Quibi content. Quibi’s infrastructure and technology, such as the Turnstyle interface, are not part of the business.
The user experience on the Roku Channel, admitted Holmes, will be different from the Quibi experience. Unlike shorter bursts on a cell phone, Roku will seek longer involvement in the living room.
“It’s the same availability of content, the same presentation of content,” said Holmes. “But as we spend a lot of time with this, it really works, but it’s just TV episodes. I think their premise was, you have 10 minutes, you would watch. Our opinion is, this is TV, someone is going to spend half an hour or an hour or two watching it because it is just so attractive. “He added,” You don’t usually see content like this for free in streaming. “
Holmes said more content purchases similar to Quibi’s purchase are likely to occur as Roku continues to grow, although he declined to say what type of programming the company will pursue. Overall, Roku has a spectacular growth history, moving from a manufacturer of hardware boxes and dongles that allow viewers to stream to a technology heavyweight of nearly $ 50 billion.
In the official announcement of the deal, Holmes described it as “a rare opportunity”. On the Roku Channel, he said: “We are consistently expanding the breadth and quality of our free content with ads
for our users. “
Reaching a young audience is another important factor for the business. Quibi’s ambition was to attract a large audience of viewers between the ages of 18 and 35.
“Quibi defended some of the most original ideas and inventive narratives, and I’m very proud of what I was able to create for the platform,” said Veena Sud, creator, writer, director and executive producer of The weird. “I’m so excited that I can now share this suspense with millions of streamers on Canal Roku.”