Quibi Launches In Middle Of Pandemic, But Long-Term Prospects Are Solid
A virus with no promise of a near-term vaccine, or perhaps a treatment, messes up everything. Its repercussions even reach promising new premium video platforms.
This is Quibi’s root .
But here’s a solacement. A UBS research study — looking further out beyond near-term COVID-19 concerns — shows a gentle upside.
A study of 40 advertising executives said over consequent 24 months around 58% of advertisers expect to shift ad dollars to digital platforms from legacy TV networks/stations.
UBS analyst John Hodulik says: “Survey respondents appear more receptive to shifting budgets to other sorts of online video, perhaps because of upcoming ad-supported DTC launches, including Comcast’s Peacock or Quibi [emphasis added].”
That’s the long view.
Right now, legacy TV and cable networks — including live news programming — and television stations and other platforms are seeing some rare growing usage and viewership, because of COVID-19 issues.
Behaviorally — with more workers et al. abiding with stay-at-home orders — this implies many media viewers sticking with traditional TV networks and stations.
Long term, maybe there’s something else going on: Major TV marketers are already positioning themselves for the longer term . Ten major TV and advertising marketers — Progressive, Discover, General Mills, Procter & Gamble, AB InBev, Taco Bell, Pepsi, T-Mobile, Google and Walmart — have signed onto Quibi with the promise to spend $150 million in advertising.
The near-term problem runs smack into Quibi’s original premise — a mobile-first, short-duration premium video within which a typical TV episode is 10-minute just about long . The initial belief is that the Quibi user– standing for ‘quick bites’ — would be a consumer waiting during a doctor’s office, on line at a bank, or a food market.
Now? Quibi executives believes its platform might be an outlet for nervous and tense at-home workers/students searching for a fast 10-minute TV-episode escape.
That may be a tricky premise.
Not just within the hopes of fixing consumers media habits within the coming weeks, but due to hard-pressed consumer spending habits. Do consumers really want to spend more cash for one more premium video service, even with Quibi’s low $4.99 month price tag?
T-Mobile’s promotion with Quibi — giving many of its many mobile subscribers a free initial year of the service — will help.
The bottom line are going to be what reasonably usage it’ll get within the coming weeks and months. Right now, it’s got its work cut out.
Quibi has spent $9 million in national TV ads over the last period of time (March 23 to April 5), and $28.8 million since the start of the year, consistent with iSpot.tv. But a Morning Consult/Hollywood Reporter survey, March 19-21, found 68% of respondents have not heard of Quibi.