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State of the Screens

Hollywood-backed Quibi thinks you’ll pay for its video bites

By January 16, 2020No Comments

Key details for Quibi:
1) Quibi is short for “quick bites”
2) Launching April 6th
3) The target audience is 25-35-year-olds
4) $1.4B in capital raised
5) 230 employees

Key details for Quibi revenue model:
1) $5/month w/ ads; $8/month without ads
2) 1 pre-roll ad per episode (<5m video = 10s ad; 5-10m video = 15s ad)
3) 2.5m of advertising per hour
4) 20M subscribers by 2024
5) 75% of users will have ad-supported tier
6) They are seeking $15-25M upfront advertising commitments from companies such as P&G
7) $150M+ in upfront ad commitments

Quick math on Quibi advertising:
1) 20m paid users by 2024
2) 50% w/ ads
3) 15m paid users w/ ads
4) 2.5m of advertising per hour
5) $35 CPM for 15s ad
6) 10 15s spots/hour
7) $0.40 in ad revenue/hour
8) $665M revenue from advertising
9) $44.33/user/year in ad revenue
10) $3.69/user/month in ad revenue
11) 127 hours/year of viewing w/ ads/user
12) 11 hours/month of viewing w/ ads/user

Key details for Quibi content:
1) 7-10m 
per episode
2) 7K pieces of content at launch
3) 25+ episodes added daily
4) $100K/minute average development cost w/ a maximum of $6M/hour

Worth the time: Quibi is Offering Something Impressive, But Does Anyone Want It? h/t: Lucas Quagliata (a SOTS reader)

Video: Quibi streaming mobile video service raises $400 million ahead of launch

More: Quibi unveils “Turnstyle,” its flagship mobile video format

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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