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Jeffrey Katzenberg Blames Pandemic for Quibi’s Rough Start Jeffrey Katzenberg Blames Pandemic for Quibi’s Rough Start
(3 days later)
LOS ANGELES — Jeffrey Katzenberg hasn’t left his Beverly Hills home in nearly 50 days.LOS ANGELES — Jeffrey Katzenberg hasn’t left his Beverly Hills home in nearly 50 days.
Deprived of a frenetic schedule that, before the coronavirus pandemic, typically meant three breakfast meetings, three lunch meetings and a working dinner, the veteran executive has filled his days with what he calls “Zoom-a-roo” videoconferences as he tries to rejigger Quibi, the streaming app he started with Meg Whitman a little more than a month ago.Deprived of a frenetic schedule that, before the coronavirus pandemic, typically meant three breakfast meetings, three lunch meetings and a working dinner, the veteran executive has filled his days with what he calls “Zoom-a-roo” videoconferences as he tries to rejigger Quibi, the streaming app he started with Meg Whitman a little more than a month ago.
Downloads have been anemic, despite a lineup that includes producers and stars like Jennifer Lopez, LeBron James, Idris Elba, Steven Spielberg and Chrissy Teigen.Downloads have been anemic, despite a lineup that includes producers and stars like Jennifer Lopez, LeBron James, Idris Elba, Steven Spielberg and Chrissy Teigen.
The service, which offers entertainment and news programs in five- to 10-minute chunks, was designed to be watched on the go by people who are too busy to sit down and stream TV shows or movies. It came out when millions of people were not going anywhere because of stay-at-home orders across the country.The service, which offers entertainment and news programs in five- to 10-minute chunks, was designed to be watched on the go by people who are too busy to sit down and stream TV shows or movies. It came out when millions of people were not going anywhere because of stay-at-home orders across the country.
“I attribute everything that has gone wrong to coronavirus,” Mr. Katzenberg said in a video interview. “Everything. But we own it.”“I attribute everything that has gone wrong to coronavirus,” Mr. Katzenberg said in a video interview. “Everything. But we own it.”
Quibi fell out of the list of the 50 most downloaded free iPhone apps in the United States a week after it went live on April 6. It is now ranked No. 125, behind the game app Knock’em All and the language-learning app Duolingo, according to the analytics firm Sensor Tower.Quibi fell out of the list of the 50 most downloaded free iPhone apps in the United States a week after it went live on April 6. It is now ranked No. 125, behind the game app Knock’em All and the language-learning app Duolingo, according to the analytics firm Sensor Tower.
Even with a free 90-day trial, the app has been installed by only 2.9 million customers, according to Sensor Tower. Quibi says the figure is more like 3.5 million. Of those who have installed the app, the company says 1.3 million are active users.Even with a free 90-day trial, the app has been installed by only 2.9 million customers, according to Sensor Tower. Quibi says the figure is more like 3.5 million. Of those who have installed the app, the company says 1.3 million are active users.
Mr. Katzenberg expressed disappointment with those numbers. “Is it the avalanche of people that we wanted and were going for out of launch?” he said. “The answer is no. It’s not up to what we wanted. It’s not close to what we wanted.”Mr. Katzenberg expressed disappointment with those numbers. “Is it the avalanche of people that we wanted and were going for out of launch?” he said. “The answer is no. It’s not up to what we wanted. It’s not close to what we wanted.”
Mr. Katzenberg, the onetime head of Walt Disney Studios and a founder of DreamWorks SKG, was asked if he wished he had not launched Quibi when he did.Mr. Katzenberg, the onetime head of Walt Disney Studios and a founder of DreamWorks SKG, was asked if he wished he had not launched Quibi when he did.
“If we knew on March 1, which is when we had to make the call, what we know today, you would say that is not a good idea,” he said. “The answer is, it’s regrettable. But we are making enough gold out of hay here that I don’t regret it.”“If we knew on March 1, which is when we had to make the call, what we know today, you would say that is not a good idea,” he said. “The answer is, it’s regrettable. But we are making enough gold out of hay here that I don’t regret it.”
Mr. Katzenberg, 69, and Ms. Whitman, 63, the former Hewlett-Packard chief, raised nearly $1.8 billion from Hollywood studios and the Chinese e-commerce giant Alibaba for Quibi. They pitched it as an app designed to match how people consumed media now — on their phones during slow moments, while they commuted or waited in line. Conditions were much different on the day it came out.Mr. Katzenberg, 69, and Ms. Whitman, 63, the former Hewlett-Packard chief, raised nearly $1.8 billion from Hollywood studios and the Chinese e-commerce giant Alibaba for Quibi. They pitched it as an app designed to match how people consumed media now — on their phones during slow moments, while they commuted or waited in line. Conditions were much different on the day it came out.
“My hope, my belief was that there would still be many in-between moments while sheltering in place,” Mr. Katzenberg said. “There are still those moments, but it’s not the same. It’s out of sync.”“My hope, my belief was that there would still be many in-between moments while sheltering in place,” Mr. Katzenberg said. “There are still those moments, but it’s not the same. It’s out of sync.”
Many people who downloaded Quibi had a simple question: Why can’t I watch it on TV? In response, Mr. Katzenberg and Ms. Whitman have backpedaled on their original commitment to a smartphone-only app. This week, Quibi subscribers who have iPhones will be able to watch movies-in-chapters like “Most Dangerous Game” and shows like “Chrissy’s Court” on TV screens. (Android users will have to wait a few more weeks.)Many people who downloaded Quibi had a simple question: Why can’t I watch it on TV? In response, Mr. Katzenberg and Ms. Whitman have backpedaled on their original commitment to a smartphone-only app. This week, Quibi subscribers who have iPhones will be able to watch movies-in-chapters like “Most Dangerous Game” and shows like “Chrissy’s Court” on TV screens. (Android users will have to wait a few more weeks.)
Also coming soon, Mr. Katzenberg said: Quibi will be less walled off from the internet, and users will be able to share its content on social media platforms.Also coming soon, Mr. Katzenberg said: Quibi will be less walled off from the internet, and users will be able to share its content on social media platforms.
“There are a whole bunch of things we have now seen in the product that we thought we got mostly right,” he said, “but now that there are hundreds of people on there using it, you go, ‘Uh-oh, we didn’t see that.’”“There are a whole bunch of things we have now seen in the product that we thought we got mostly right,” he said, “but now that there are hundreds of people on there using it, you go, ‘Uh-oh, we didn’t see that.’”
Quibi placed a large bet on news programming for a lineup of shows from NBC, BBC, Telemundo and ESPN that it filed under the name Daily Essentials. Interest in those segments has been minimal.Quibi placed a large bet on news programming for a lineup of shows from NBC, BBC, Telemundo and ESPN that it filed under the name Daily Essentials. Interest in those segments has been minimal.
“The Daily Essentials are not that essential,” Mr. Katzenberg quipped.“The Daily Essentials are not that essential,” Mr. Katzenberg quipped.
There have been other bumps in the last month.There have been other bumps in the last month.
A tech company, Eko, accuses Quibi of misappropriating trade secrets and infringing on the patent for the technology that allows viewers to shift seamlessly between horizontal and vertical viewing. The activist hedge fund Elliott Management has committed to funding a lawsuit filed by Eko.A tech company, Eko, accuses Quibi of misappropriating trade secrets and infringing on the patent for the technology that allows viewers to shift seamlessly between horizontal and vertical viewing. The activist hedge fund Elliott Management has committed to funding a lawsuit filed by Eko.
A recent report found that Quibi had given away its customers’ email addresses without their knowledge. “As soon as we heard about it, we fixed it,” Mr. Katzenberg said.A recent report found that Quibi had given away its customers’ email addresses without their knowledge. “As soon as we heard about it, we fixed it,” Mr. Katzenberg said.
Several executives, including Janice Min, left Quibi during its beta phase, and the company parted with another key team member in recent weeks: Megan Imbres, the top marketing executive, who declined to comment. A newly installed interim marketing executive for Quibi, Ann Daly, once the president of DreamWorks Animation, has worked with Mr. Katzenberg since 1997. He said the change had come about because of a “difference of opinion about what the strategy would be going forward.”Several executives, including Janice Min, left Quibi during its beta phase, and the company parted with another key team member in recent weeks: Megan Imbres, the top marketing executive, who declined to comment. A newly installed interim marketing executive for Quibi, Ann Daly, once the president of DreamWorks Animation, has worked with Mr. Katzenberg since 1997. He said the change had come about because of a “difference of opinion about what the strategy would be going forward.”
Updated June 5, 2020 Updated June 12, 2020
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Until recently, Quibi promoted its service as a whole, rather than marketing any particular show. That strategy has started to change. On a recent installment of “The Last Dance,” the ESPN documentary series on the 1997-98 Chicago Bulls, Quibi ran a commercial for “Blackballed,” a docu-series about the National Basketball Association's banning of the Los Angeles Clippers owner Donald Sterling. On the season finale of “Saturday Night Live” this past weekend, it advertised its reboot of the Comedy Central show “Reno 911!”Until recently, Quibi promoted its service as a whole, rather than marketing any particular show. That strategy has started to change. On a recent installment of “The Last Dance,” the ESPN documentary series on the 1997-98 Chicago Bulls, Quibi ran a commercial for “Blackballed,” a docu-series about the National Basketball Association's banning of the Los Angeles Clippers owner Donald Sterling. On the season finale of “Saturday Night Live” this past weekend, it advertised its reboot of the Comedy Central show “Reno 911!”
Quibi will enact the new strategy on a smaller scale, spending much less than the $470 million it had planned to devote to marketing in its first year, given that many of its potential customers are stuck at home.Quibi will enact the new strategy on a smaller scale, spending much less than the $470 million it had planned to devote to marketing in its first year, given that many of its potential customers are stuck at home.
“Until we are in an environment where we can get a return on our investment, we are going to keep our powder dry,” Mr. Katzenberg said.“Until we are in an environment where we can get a return on our investment, we are going to keep our powder dry,” Mr. Katzenberg said.
As Zoom and TikTok top the app charts, Mr. Katzenberg and other Quibi executives have been working on reducing their projections from the seven million users and $250 million in subscriber revenue they had estimated for Quibi’s first year. With television and film production shut down almost entirely, Quibi has also decided to slow the pace of its new releases so it will be able to offer fresh content until the start of 2021.As Zoom and TikTok top the app charts, Mr. Katzenberg and other Quibi executives have been working on reducing their projections from the seven million users and $250 million in subscriber revenue they had estimated for Quibi’s first year. With television and film production shut down almost entirely, Quibi has also decided to slow the pace of its new releases so it will be able to offer fresh content until the start of 2021.
Despite the difficult start, Mr. Katzenberg said he saw reasons for optimism. Eighty percent of Quibi’s viewers complete the episode they are watching, Mr. Katzenberg said. And once daily life returns to normal, he believes, people will go back to using their phones in ways that prompted him and his investors to bet on Quibi.Despite the difficult start, Mr. Katzenberg said he saw reasons for optimism. Eighty percent of Quibi’s viewers complete the episode they are watching, Mr. Katzenberg said. And once daily life returns to normal, he believes, people will go back to using their phones in ways that prompted him and his investors to bet on Quibi.
When asked if the success of TikTok gave him pause, considering that it is also a platform built on short-form video, albeit of the user-generated variety, Mr. Katzenberg seemed momentarily steamed.When asked if the success of TikTok gave him pause, considering that it is also a platform built on short-form video, albeit of the user-generated variety, Mr. Katzenberg seemed momentarily steamed.
“That’s like comparing apples to submarines,” he said. “I don’t know what people are expecting from us. What did Netflix look like 30 days after it launched? To tell me about a company that has a billion users and is doing great in the past six weeks, I’m happy for them, but what the hell does it have to do with me?”“That’s like comparing apples to submarines,” he said. “I don’t know what people are expecting from us. What did Netflix look like 30 days after it launched? To tell me about a company that has a billion users and is doing great in the past six weeks, I’m happy for them, but what the hell does it have to do with me?”