Short-form streaming platform Quibi will shut down after just six months.
Quibi was launched in April this year, and it picked up around 4.5 million downloads, though only 1.6 million entered a subscription with 90 per cent of them canceling at the end of their free trial.
Part of the problem was that many users wanted to use the service on multiple platforms, not just mobile, though it did become available on other formats including TV several months after launch.
Big idea, little result
In an official statement, Quibi's Katzenberg and Whitman have apologised for the shut down of the service. However, they have acknowledged that there two potential reasons for the failure of the streaming platform.
"Quibi is not succeeding. Likely for one of two reasons: because the idea itself wasn't strong enough to justify a standalone streaming service or because of our timing," reads the statement.
As for the assets owned by the company, it "will be working hard to find buyers for these valuable assets who can leverage them to their full potential."