Name: Insights: Quibi Brings Hollywood to Mobile
Uploaded: 2020-03-23
Duration: 7 min 5 s
Description: Hollywood and Silicon Valley look to disrupt digital video.

 ANDREW NUSCA: What actually is Quibi? Short form video, right? MEG WHITMAN: Well, Quibi is short form, very high quality video made from mobile. Like Hollywood quality video on a platform designed by the best of Silicon Valley in an entirely new format, you know, 10 minutes or less. JEFFREY KATZENBERG: In the first 12 months, we will publish somewhere between 5,000 and 6,000 chapters or quick bites. MEG WHITMAN: Quibis. JEFFREY KATZENBERG: Quibis. So literally, 6,000 Quibis in one year, so. ANDREW NUSCA: An enormous amount of content. MEG WHITMAN: Yeah. JEFFREY KATZENBERG: And we needed everybody to actually make content for us. ANDREW NUSCA: Meg, how do you get it to people? So one of the biggest challenges in the current media environment is distribution. MEG WHITMAN: Right. ANDREW NUSCA: A lot of companies have distribution, but not content. A lot of companies have content, but no distribution. MEG WHITMAN: But no distribution. ANDREW NUSCA: How do you get this great stuff in front of people? MEG WHITMAN: Well, this is an app, a Quibi app that you can download from the Apple Store or Google Play, so you'll be able to do it in the normal way. And then we will do distribution deals with a number of the telcos. We're going to launch in the US and Canada at first, so we will pick a telco to launch with. And in terms of a bundled deal, there might be an opportunity to do something with a streaming service. But then we have to explain to people what this is because it's an entirely new concept. So we will do brand marketing and make sure people understand what we offer. Because it's a completely different use case. Often, people think, oh, well, it's sort of like a Hulu or a Netflix. We love Hulu and Netflix. They've done amazing things. But this is an entirely different use case. It's on-the-go viewing, and we have to explain that to people. And then of course, we'll do content marketing. Not only our lighthouse shows, but also what we call our daily essentials, which is making things like news, we'll curate into a morning, noon, and night news offering in 6 and 1/2, 7 minutes. JEFFREY KATZENBERG: We went out and talked to every one of the major media companies and explained to them what we wanted to do. And they saw right off the bat that if we are right, if this is successful, it's a growth opportunity for the entire ecosystem. So not only is it good business for them individually, but for the industry as a whole, this actually could be a big new opportunity. And out of that, not only did they agree to give us access to the best show running talent, give us access to their best IP, but they actually invested. MEG WHITMAN: And frankly, given that there is no library to go by, without all eight major studios and a couple of the independents, I'm not sure that anyone could make the amount of content that we need to be successful. ANDREW NUSCA: How do you make sure that your end users consume? I know that they're spending time on phone because so am I. So are you. However, how are you going to get them to spend a few dollars on that? Because they're not today. And that's a big change in consumer behavior. MEG WHITMAN: Well, I think it's a couple of things. One is the content has to be great, right? It has to be unique content that fits that on-the-go, on-the-move moments every day. So it's a very unique use case that has to have a great content strategy. And then the experience has to be differentiated. Today, watching video on your mobile is a good experience, but it's not a fantastic experience. And so we need to change the way content is shopped to some degree, and then how we display it on the phone and how we handle changes in light environments and other things in a way that people go, wow, this is amazing, fantastic content in a user experience that they've not seen before. And then we're going to have to tell people about it. And if it's good, certainly, there'll be some virality to it as well. ANDREW NUSCA: So when you're talking about light environments, you're talking about literally being out in the open world and not-- MEG WHITMAN: Think about it. ANDREW NUSCA: --inside in a theater or a dark home. MEG WHITMAN: We're in this environment right now. If you walked out onto the street, it would be a completely different light environment. You got into your car, it would be another light environment. And we have to be able to adjust for that, without you leaving the app today and going to the controls on your phone. And just, there's 10 or 15 examples where I think we can make a meaningful difference from a tech platform perspective. JEFFREY KATZENBERG: So here's an amazing statistic that says when everyday there are these things that reveal themselves to us, and everyday we look at each other and we go, touchdown. So here's the latest one. In 2017, the average user in our demographic watched 38 and 1/2 minutes a day of short form video on a mobile device. ANDREW NUSCA: And this demographic is-- MEG WHITMAN: 25 to 35. ANDREW NUSCA: Got it. JEFFREY KATZENBERG: OK. This year in 2018, it passed 60 minutes. So think about that people are doing more and more of what we are setting out to do. They're watching more and more. We're not fighting a trend. We're just, we're literally diving right into-- they're leading. We're just going to go try and catch up with them. This is the old Wayne Gretzky. You can't skate to where the hockey puck is. You've got to go to where it's going. And that's what we're doing. ANDREW NUSCA: Tell me a little bit about how you make money, and just as well, how your content creators make money. MEG WHITMAN: So this will be much like the Hulu model. There will be a subscription with advertising, like a 10-second pre-roll in front of each piece of content, and then a subscription per month with no advertising. So that's our monetization mechanism. And it's differentiated in some ways because if you think about, well, why has no one done super high quality content in short form, it's because if the only way to monetize that content is advertising, it doesn't pay. Because at the kind of budgets that Hollywood and TV shows work at, you've got to have a subscription companion to the advertising. So that's how we make money. ANDREW NUSCA: Jeffrey, how big of a market opportunity do you think this is? You've been playing in content for a long time. JEFFREY KATZENBERG: It's unlimited. I mean, it's a global platform. And by 2020, there'll be three billion smartphones. That's our addressable market. 1% or 2% of a three billion market is a phenomenal, phenomenal success. Anything beyond that is extraordinary. But the thing that excited us about it is, is that, creatively, it's an opportunity to innovate in a way that is new and unique and is game changing. And for business entrepreneurs, for creators, if we get it right, the sky is the limit. There is no ceiling on this one. And that comes along once in a lifetime, if ever. You're lucky if it comes along once in a lifetime. And we've had some of those experiences. eBay was once in a lifetime. MEG WHITMAN: Sure. JEFFREY KATZENBERG: Disney, DreamWorks, these were once in a lifetime opportunities. This is one of those. And so we're excited. 

Insights: Quibi Brings Hollywood to Mobile

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Hollywood and Silicon Valley look to disrupt digital video.

Quibi Brings Hollywood to Mobile

what actually is quippy short form video, right? Well, Quimby is short for very high quality video made from mobile, like Hollywood quality video on a platform designed by the best of Silicon Valley in an entirely new format, you know, 10 minutes or less. In the 1st 12 months, we will publish somewhere between five and 6000 chapters or quit. Quit being so literally 6000 quid bees in one year, an enormous amount of content. And yeah, and we needed everybody to actually make content for us. May how do you get it to people? So one of the biggest challenges in the current media environment is distribution, but, um, a lot of companies have distribution, but not content. A lot of companies of content distribution. How do you get this great stuff in front of? Well, this is an app, you know, equipe app that you can download from, you know, the Apple store or Google play. So you bail to do in the normal way, and then we will do distribution deals with, you know, a number of the tacos we're gonna launch in the U. S. And Canada at first. So we will pick a tell kowtow launch with In terms of a bundle deal, there might be an opportunity to do something with streaming service. But then we have to explain to people what this is because it's an entirely new concept. So we will do brand marketing and make sure people understand what we offer because it's a completely different use case. Often people think, well, sort of like a whole ou r Netflix. We love who on Netflix. They've done amazing things, but this is an entirely different use cases on the go viewing, and we have to explain that to people. And then, of course, we'll do content marketing not only our lighthouse shows, but also what we call our daily essentials, which is, you know, making things like news will curate into a morning, noon and night news offering in six and 1/2 7 minutes. You know, we went out and talked every one of the major media companies and explain to them what we wanted to do. And they saw right off the bat that if we are right, if this is successful, it's a growth opportunity for the entire ecosystem. So not only is a good business for them individually. But for the industry as a whole, this actually could be a big new opportunity. And all of that, Not only did they agree to give us access to the best show running talent, give us access to their best I t, but actually invested. And frankly, given that there is no library to go by without all eight major studios and a couple of independence, I'm not sure that anyone could make the amount of content that we need to be successful. How do you make sure that your end users consume? I know that they're spending time on phone because So my, so are you. However, how are you going to get them to spend a few dollars on that? Because they're not today. And that's a big change in consumer behavior. Well, I think it's a couple things. One is the content has to be great, right? It has to be unique content that fits that on the go, you know, on the move moments every day. So it's a very unique use case that has to have ah, great content strategy and the next appearance has to be differentiated, you know, today watching video on your mobile is a good experience, but not fantastic appearance. And so we need to change the way content is shot to some degree, and then how we display it on the phone and how we handle changes in light environments and other things in a way that people go. Wow, this is amazing, fantastic content in the user experience that they've not seen before. And then we're gonna tell people about it, and if it's good, they're you know, certainly there will be some morality to it as well. So when you're talking about light environments, you're talking about literally being out in the in the open world and not inside in a new environment right now, if you walked out onto the street, that would be a completely different environment. Invite environment you got into your car. It would be another light environment, and the we have to be able to adjust for that without you leaving the app today and going to the you know, the controls on your phone and just theirs 10 or 15 examples where I think we can make a meaningful difference from a tech platform perspective. So here's an amazing statistic, which is, you know, when every day there were these things that reveal themselves off, and every day we look at each other and we go touchdown. So here's the latest one. In 2017 the, uh, average, uh, user and our demographic watched 38 a half minute today of short form video on a mobile device. And this demographic is when you live to 35 okay, this year in 2018 it past 60 minutes. So think about that. People are doing Maura and Maura of what we are setting out to do. They're watching more and more. We're not. We're not fighting a trend. We're just we're literally diving right into they're leading. We're just gonna go try and catch up with the old Wayne Gretzky. You can't skate to where the hockey puck is. You've got to go to where it's going, and that's what we're doing. Tell me a little bit about how you make money and just as well how your content creators make money. So this will be much like the Hula model. There will be a subscription with advertising like a 12th pre roll in front of each piece of content and then, um, a subscription per month with no advertising. So that's our monetization mechanism. And, um, it's differentiated in some ways because if you think about well, why has no one done super high quality content in short form? It's because it's the only way to monetize that content is advertising. It doesn't pay because at the kind of budgets that you know, Hollywood and TV shows work out, you can't. You've gotta have a subscription companion to the advertising. So that's how we make money. Jeffrey. How big of a market opportunity do you think this is? You've been playing in content for a long time. It's unlimited. I mean, it's a global platform. And, uh, by 2020 there'll be three billion smartphones. That's our addressable market. One or 2% of a three billion market is a phenomenal, phenomenal success. Anything beyond that is, you know, extraordinary. But But the thing that excited us about it is is that creatively, it's an opportunity to innovate in a way that, um, his new and unique and is game changing. Um, and for business entrepreneurs, for creators, if we get it right, the sky is the limit. There is no ceiling on on this one And that that comes along once in a lifetime. If ever you're lucky that comes along once in a lifetime and that we've had some of those experiences. EBay was once in a lifetime. You know, Disney, DreamWorks. These were once in a lifetime opportunity. Um, this is one of those, and so we're excited.