Valuetainment - How Quibi Burned $2 Billion in 6 Months

00:00:00.120 So imagine you got this great business idea to compete with Netflix, Hulu, Amazon, and you go pitch the idea to NBCUniversal.

00:00:06.440 You go to Walt Disney, you go to Time Warner, Warner Brothers, JPMorgan Chase, Goldman Sachs, Alibaba, NBCUniversal.

00:00:13.160 And at the end of every single meeting, these guys say, yes, we're in.

00:00:15.980 And you don't raise $100 million, not a half a billion dollars, not a billion dollars.

00:00:19.940 You raise $1.8 billion and you launch this company April 6th, 2020, at a time where Disney's having record-breaking subscribership, Disney Plus, where you see Netflix, Tiger King blowing up, 34 million people watching the first 10 days.

00:00:36.580 You end up seeing all these guys getting the subscriber records.

00:00:39.800 And six months after you raise $1.8 billion, you shut down.

00:00:44.200 You know what that company's name is?

00:00:45.840 Quibi.

00:00:46.220 Wall Street Journal comes out two days ago saying, Quibi is shutting down barely after starting six months.

00:00:54.180 Can you imagine this?

00:00:55.080 Now, let's unpack this Quibi business model. 1.00

00:00:58.140 Let's see what they are.

00:00:58.900 So Quibi, a couple different things you need to know about Quibi.

00:01:01.820 Number one, their whole idea was we're going to make 10-minute videos, right?

00:01:04.820 So 10-minute short films and we're going to compete because nowadays, you know, the younger audience wants to watch movies on their phone.

00:01:12.600 They don't really want to go out there and watch it on TV.

00:01:14.440 They're going to watch it on their phone.

00:01:15.400 So let's make sure 10-minute clips.

00:01:17.120 Let's go get the biggest A-listers, right? 1.00

00:01:19.080 I'm talking any one of them.

00:01:20.200 You name them, they got them, by the way.

00:01:21.400 I got the list.

00:01:21.980 I'll show it to you.

00:01:22.820 All the big A-listers.

00:01:24.200 Let's pay them $100,000 per minute is what we're going to pay them. 0.90

00:01:28.900 And let's go compete with everybody else, right?

00:01:30.820 So now the leadership team of Quibi, when they came out, quick bites, big stories.

00:01:36.280 The guy holding the camera is Mario.

00:01:38.060 And Mario, are you not a fan of Quibi?

00:01:39.800 I am, man.

00:01:40.240 He's a fan of Quibi, so he's heartbroken.

00:01:42.080 He was crying a little bit earlier.

00:01:43.780 So Meg Whitman and Jeffrey Katzenberg are the ones who go out there and lead Quibi.

00:01:51.500 Now, Meg Whitman's resume, she took eBay from $8 million to $32 billion. 1.00

00:01:58.100 She even ran for governor in 2010 of California as a Republican.

00:02:01.340 She's worth $5.1 billion, 64 years old, FYI. 0.98

00:02:06.460 Do you know what her favorite show is to watch on TV?

00:02:08.540 History Channel, which the average age of History Channel is 50 plus.

00:02:12.920 The audience they were targeting was 18 to 24, 18 to 30.

00:02:17.100 They wanted the younger audience to consume their content.

00:02:20.200 Jeffrey Katzenberg on the other side, here's a man with a ridiculous, you know, resume that he has.

00:02:27.000 We're talking about, you know, The Little Mermaid, Beauty and the Beast, you know, The Lion King, Aladdin.

00:02:32.400 Can you imagine working on these big hits?

00:02:34.500 And he's worth $900 million.

00:02:37.940 Founder of Quibi, 69 years old.

00:02:40.980 They together come up and start this idea called Quibi. 0.95

00:02:44.300 I told you they raised $1.8 billion.

00:02:46.360 You can go to Crunchbase and see who the people are.

00:02:49.040 Alibaba, you got Warner, Walt Disney, Warner Brothers, Sony, I miss Sony.

00:02:55.660 They pretty much got everybody, right?

00:02:57.440 Now, when they started a company, they came out saying, we're going to give $100,000 per minute.

00:03:01.900 So when they said $100,000 per minute, whose attention did they get?

00:03:05.240 I'm going to go through this list fairly quickly, but try to, you know, hang in there with me when I'm going through the list.

00:03:10.580 You're going to know these names.

00:03:12.100 Chrissy Tegan, you know the name.

00:03:14.700 Titus Burgess, let me continue here.

00:03:16.560 Chance the Rapper who did Punk'd, which was the old show I think Ashlyn Kutcher used to do back in the days.

00:03:20.800 J-Lo, Kristen Bell, Yara Shadidi, Tracy Morgan, Carly Claus, Nick Jonas, Gabriel Iglesias.

00:03:27.720 Ridiculous lineup right there.

00:03:29.380 Demi Lovato, let me continue here.

00:03:31.400 Andy Samberg, Liam Hemsworth, Christopher Waltz, Sophie Turner, Corey Hawkins, Reese Witherspoon, Kiki Palmer, Joel Kimbooster, Queen Latifah.

00:03:42.720 I mean, again, they got The Rock.

00:03:44.800 They got Kevin Hart.

00:03:45.900 They got John Travolta, Eva Longoria, Andy Garcia.

00:03:49.260 If I go on Trevor Noah, you know a lot of these names.

00:03:53.420 Tyra Banks, Joe Jones, Usher.

00:03:55.960 You know these names.

00:03:56.680 These are big names that they got.

00:03:58.560 They got all LeBron James.

00:04:00.400 They got all the big names and they still failed.

00:04:02.960 Why did they fail?

00:04:04.140 Why are they shutting down six months later?

00:04:06.080 Well, they also came up with a 60-minute version in Quibi for six minutes.

00:04:12.580 So 60 minutes did a six-minute version on Quibi, yet they're targeting an audience of 18 to 34 years old.

00:04:19.540 But they want to do 60 minutes on six minutes.

00:04:22.400 Wait a minute.

00:04:23.140 The average viewer of 60 minutes, you know how old it is?

00:04:26.180 60 years old.

00:04:27.580 And all of these actors may be rock stars.

00:04:29.840 But 18 to 34, huh?

00:04:31.660 Let's continue.

00:04:32.300 So what happens with Quibi? 0.76

00:04:33.840 Recently, when they shut down, this is what Katzenberg and Meg Whitten said two days ago, Quibi is not succeeding, okay?

00:04:42.340 Likely for one of two reasons.

00:04:44.140 Because of the idea itself wasn't strong enough to justify a standalone streaming service or because of our timing.

00:04:50.760 So what they're talking about, the fact that, you know, maybe the idea wasn't good or pandemic kind of hit and, you know, people were really consuming videos on their phones because they were at home.

00:05:02.160 So they weren't working.

00:05:03.020 They were watching stuff on their TV or their PC.

00:05:04.880 But I can tell you for myself, I'm 42 years old.

00:05:07.340 When the pandemic came and I was 41, I consumed more content on my phone than this.

00:05:11.880 Matter of fact, let's look at some data on what happened during this time.

00:05:14.860 So during the pandemic, this is an article from August 5th.

00:05:17.980 So it's not a today article, but this is from two months ago.

00:05:22.520 TV watching and online streaming surge during lockdown.

00:05:25.700 Ready?

00:05:26.800 Adults spend nearly six and a half hours a day watching TV and online videos.

00:05:31.080 One hour and 11 minutes per day spent watching streaming videos.

00:05:34.380 Double what it was before the pandemic.

00:05:36.060 12 million customers signed up to new services like Netflix, Amazon Prime, and Disney.

00:05:40.620 Viewing figures for video streaming services up 71%.

00:05:44.400 Watch this.

00:05:45.580 Quibi got 5.6 million subscribers.

00:05:47.980 In the first, when they first got started, their app was ranked number three.

00:05:51.980 The day they launched April 6th, their app was ranked number three.

00:05:55.120 Immediately, they were not even in the top 50.

00:05:57.760 And report says Quibi lost 92% of its original early users after free trials.

00:06:05.220 Meaning when they first came out, they got 910,000 users because they gave it away for free for a couple weeks.

00:06:11.700 Only 72,000 agreed to pay afterwards.

00:06:14.680 Think about this, what is taking place with them.

00:06:16.260 So now, Q2 was a tipping point in streaming wars.

00:06:19.620 Here's how the media giant stacked up.

00:06:21.500 If you look at some data here, Disney hit 60 million plus on Disney Plus.

00:06:28.140 60 million on track to crack their number.

00:06:30.760 They were just crushing it.

00:06:32.160 Netflix was crushing it.

00:06:33.260 Every data you pretty much look at was a great time for these guys.

00:06:37.020 Now, let's continue a little bit more with Quibi. 1.00

00:06:39.140 While they came out, rather than spending a chunk of their $1.8 billion advertising on TikTok or, you know, Instagram, 18 to 34.

00:06:48.480 Maybe not Facebook, but even Facebook because Facebook allows you to do a viral or Twitter.

00:06:52.940 Here's what they ended up spending their money.

00:06:55.080 They spent money advertising on Oscars.

00:06:59.160 Okay?

00:06:59.700 They spent money advertising Super Bowl.

00:07:02.760 They advertised during the Super Bowl.

00:07:04.920 Do you know what happened when they advertised on Super Bowl?

00:07:07.440 Let me read this article to you that I think is very important for you to see.

00:07:10.800 When they advertised on, what do you call it, on Super Bowl, do you know what the average viewer thought they were watching?

00:07:21.980 Watch this.

00:07:22.980 Okay, Quibi Super Bowl ad.

00:07:25.900 Okay, you ready?

00:07:26.680 Watch what it says here.

00:07:28.140 Quibi Super Bowl ad, 70%.

00:07:30.560 You got to see this.

00:07:32.040 This is just classic.

00:07:33.760 Hilarious.

00:07:34.580 When they came out with their ad, here it is.

00:07:38.340 When they came out with the ads, here's the article.

00:07:40.160 In the market research shows, it's Oscars and Super Bowl ads.

00:07:43.220 70% of respondents said they thought Quibi was a food delivery service.

00:07:49.280 How bad of a job can you do on advertising where I'm watching?

00:07:52.720 You spent $5.5 million on Super Bowl ads.

00:07:56.540 You could have spent that $5.5 million of ads on TikTok, Twitter, Instagram to get the 18 to 34.

00:08:02.100 So let's look at what kind of followership they got on TikTok.

00:08:05.200 They had 512,000 followers on TikTok.

00:08:08.200 13.4 million likes, which is not bad.

00:08:10.380 That's the audience you want to be on.

00:08:11.840 Facebook, they only had 50,000 likes, which by the way, it doesn't take a lot to get a lot of followers on Facebook.

00:08:17.120 You could have spent a million dollars and you would have blown up your Facebook and got things to go viral for people to spend money.

00:08:22.840 Twitter, they only had 57,000 followers.

00:08:24.720 Instagram, they only had 281,000 followers.

00:08:27.600 So they weren't really spending a lot of money there, but they did spend money on Oscars.

00:08:31.460 And by the way, the Quibi executive denies that this happened, meaning that people thought Quibi was a food delivering service.

00:08:37.420 So they completely missed the mark.

00:08:39.980 So now watch what happens here.

00:08:41.040 Blake Robbins comes out and tweets and he says, put David Dobrik's vlogs exclusively on Quibi on actual release schedule.

00:08:53.180 Also give Mr. Beast, which I don't know if you know who Mr. Beast is.

00:08:56.060 Obviously, he used the wrong name here.

00:08:57.180 But use Mr. Beast a massive budget and watch him create magic.

00:09:00.980 Because the question was asked, how would you fix Quibi?

00:09:04.360 That's what Blake Robbins said.

00:09:05.680 So Reid, the manager of Mr. Beast, comes out and said, we tried.

00:09:11.220 They said what?

00:09:12.140 No.

00:09:12.560 You ready?

00:09:13.160 This is Mr. Beast.

00:09:14.400 45 million subscribers.

00:09:17.040 He is exactly the audience that Quibi wants. 0.96

00:09:20.080 I just sorted by their most popular views.

00:09:22.800 His number one video has 101 million views.

00:09:24.980 Then 76, 76, 75, 74, 70.

00:09:27.460 So he didn't get lucky.

00:09:28.780 73, 72, 72, 68.

00:09:31.080 This guy is crushing it.

00:09:33.140 They could have got a guy like this.

00:09:34.500 But no, they're not interested.

00:09:35.380 They want more older stars who are A-listers to pay more money.

00:09:38.380 They don't want to get a guy like this.

00:09:39.460 Because who would follow somebody like this?

00:09:40.840 I mean, honestly, who would ever watch somebody like Mr. Beast?

00:09:44.040 Not a lot of people.

00:09:44.960 Maybe only 45.3 million subscribers.

00:09:47.160 Which, by the way, if you combine NBC, ABC, CNN, Fox, you know, CBS.

00:09:51.780 If you combine all of those YouTube channels combined, he's got more subscribers than them.

00:09:56.100 Combined.

00:09:56.520 You can add ESPN on top of that.

00:09:57.940 Bloomberg on top of that.

00:09:59.040 He's still got more than they do.

00:10:00.220 He's got the eyeballs.

00:10:01.460 So now, here's an example.

00:10:03.360 Borat just comes out, right?

00:10:04.440 Now, if you're watching Borat Marketing, Borat's a genius.

00:10:06.680 And they're supposed to be marketing geniuses.

00:10:09.360 Meg Whitman is a genius.

00:10:10.780 She didn't get lucky taking eBay from $8 million to $32 billion.

00:10:15.220 Here's what David Dobrik did.

00:10:18.400 Team it up with Borat to promote the new movie.

00:10:20.720 Now, watch this.

00:10:21.360 Here's an 8.1 million subscriber channel.

00:10:23.220 I don't even think this is his main channel.

00:10:24.560 But it's one of his channels.

00:10:26.240 Watch what happens.

00:10:27.080 This video comes out two days ago.

00:10:28.460 Here's what the video looks like.

00:10:29.500 Watch this.

00:10:29.940 I want to bring you guys here today to introduce you guys to one of my friends.

00:10:33.300 He flew in all the way from Kazakhstan.

00:10:35.860 Watch this.

00:10:36.880 No, it's not.

00:10:39.720 Here's how you do marketing.

00:10:41.060 Watch what he does.

00:10:42.440 There's a $150,000 Tesla there.

00:10:44.760 Watch.

00:10:46.040 Oh, no!

00:10:47.520 No!

00:10:48.580 Oh, my God!

00:10:49.100 Oh, my God!

00:10:50.480 Back it up!

00:10:51.280 Back it up!

00:10:52.380 Okay.

00:10:52.740 Back it up!

00:10:54.660 Back it up!

00:10:55.420 Backs it up! 1.00

00:10:57.060 Fuck! 1.00

00:10:58.040 Okay. 1.00

00:10:58.780 You ready?

00:11:00.300 Hey, listen.

00:11:01.260 I will get this.

00:11:04.940 6.5484 million viewers in two days.

00:11:08.600 That's how you do advertising.

00:11:09.840 Okay?

00:11:10.580 You get these young guys know what they're doing.

00:11:13.100 If you would have gotten these younger people, they know what they do to promote Quibi. 1.00

00:11:17.280 Can you imagine what Mr. Beast would have done if he would have been on Quibi?

00:11:21.280 And they would have said, can you make a video?

00:11:23.100 76 million views.

00:11:24.380 Imagine the amount of eyeballs that I want to go watch a unique series with Mr. Beast.

00:11:29.600 Now, a couple of the names they could have gotten.

00:11:31.180 If you go do some research on who are the big YouTubers, I made the list over here for

00:11:34.220 myself.

00:11:34.840 Okay, you ready?

00:11:36.000 Logan and Jake Paul.

00:11:37.460 Whether you like them or not, that's your audience.

00:11:40.080 You got, we talked about it, Ninja, Emma Chamberlain, PewDiePie, Ryan, you know, Ryan the

00:11:45.620 kid that's got 22 million subscribers, makes 7 million a year.

00:11:48.520 You got, maybe even PewDiePie's a little bit older, but he'd still be good.

00:11:51.260 Eliza Koshy, Dolan Brothers, Tal Fishman, Meryl Twins, Tessa Brooks, Charlie D'Amelio, 20 videos

00:11:57.620 she's got on YouTube.

00:11:58.540 You ready?

00:11:58.880 She's got 20 videos on YouTube.

00:12:00.280 You know how many subscribers she's got? 0.98

00:12:01.720 Nearly eight and a half million subscribers.

00:12:03.200 You think you want that audience?

00:12:04.800 That's the audience that can market for you.

00:12:07.140 So then, one of the things they did, the mistakes that they made, let's unpack this.

00:12:10.340 When you're watching a video on Quibi, you couldn't take screenshots.

00:12:15.600 They turned up.

00:12:16.180 Their technology was so ridiculous, where you would watch, you turn it around, you start

00:12:19.800 watching a movie right here, right? 0.67

00:12:20.920 10 minutes. 0.98

00:12:21.360 Ridiculous technology. 0.91

00:12:22.440 Very smooth. 0.98

00:12:23.260 Very swift.

00:12:24.440 But you couldn't take screenshots because they didn't want their content to be stolen.

00:12:29.980 The audience they want, wants screenshots.

00:12:32.540 To take a screenshot and send to a friend and say, watch this over here.

00:12:35.680 Watch this over here.

00:12:36.780 Watch this over here.

00:12:37.580 They couldn't get their users to advertise and work for them.

00:12:41.300 They prevented that from happening.

00:12:42.640 So imagine you get a new app that comes out with a bunch of regulations that you can't

00:12:46.260 use.

00:12:46.460 Do you like that?

00:12:47.260 Doesn't it need to be a little bit freer?

00:12:48.680 My good friend, Robert Kiyosaki, wrote a book once called Rich Dad, Poor Dad.

00:12:52.940 The book ends up selling, I think, 32 million copies that's up here.

00:12:56.620 You know what he said one time?

00:12:57.500 He says, Pat, you know the book's been sold 80 million times.

00:13:00.220 80 million copies have been sold, 32 million of which he got paid on, give or take.

00:13:04.280 Like, he said, I asked him a question.

00:13:07.760 I said, how do you feel about the fact that the book's being pirated?

00:13:09.860 You know what he said?

00:13:10.640 He says, I don't care if it's pirated.

00:13:12.120 You know why?

00:13:12.560 I said, why?

00:13:13.260 It's free advertising for me.

00:13:15.080 It's more advertising.

00:13:16.860 Quibi missed the big mark on basic advertising.

00:13:20.660 Let your users work for you.

00:13:22.660 But they didn't do that.

00:13:23.840 So what ends up happening, they got another lawsuit right now that's going on, which could

00:13:27.660 be one of the reasons why they're shutting down, because the company's batting a lawsuit

00:13:31.380 by an interactive company called Echo, which claims Quibi is violating its patents and

00:13:35.280 have stolen trade secrets.

00:13:36.980 The fight centers on a key feature of Quibi app that plays different videos for users,

00:13:40.360 depending on whether they are holding their phone horizontally or vertically.

00:13:44.060 By the way, they had a meeting with the Quibi team, and I think Katzenberg was in a 0.73

00:13:47.540 meeting when they presented the technology, and then they went and used the technology

00:13:51.080 on whether they used them or not.

00:13:52.360 That's what's being claimed right now, and Echo is backed up by a lot of strong, big

00:13:58.080 players.

00:13:58.660 So when big players sue you, you better be ready, because they're not just winging and

00:14:02.400 saying, here's a lawsuit for you.

00:14:03.520 When you get sued by big names, you better respect that paper's coming to you, so they're

00:14:06.940 suing them.

00:14:07.280 So I don't know what's going to happen right there.

00:14:08.900 Now, a couple things to be thinking about when we're going through this.

00:14:11.240 What mistakes?

00:14:11.840 Number one, know your customer.

00:14:13.900 And not only know your customer, know where your customer is.

00:14:17.100 So if you know who your customer is, you're going to say 18 to 34, great. 0.75

00:14:20.480 Where is your customer?

00:14:21.400 Maybe Insta, maybe TikTok.

00:14:24.760 Maybe I got to go get some of these big YouTubers. 0.94

00:14:27.220 If that's the audience you want, go get them.

00:14:29.340 Why are you getting bigger A-listers that you have to pay more money for just because they

00:14:33.540 have a bigger name?

00:14:34.140 They're in their late 40s, mid 40s.

00:14:36.160 Some of them, you got one in their 30s.

00:14:37.820 But go get some of these younger guys.

00:14:39.580 They missed the mark on that part right there.

00:14:41.060 The whole thing with marketing was a big mark.

00:14:42.980 The other thing we can learn from this, just because you have money, just because you have

00:14:46.480 big names, doesn't mean that they're hungry.

00:14:49.580 You know the whole idea about a startup guy that comes up and says, we're going to go out

00:14:52.800 there and take over the world?

00:14:54.040 That hunger goes away the richer you become for most people who are not visionaries.

00:14:58.920 For example, Elon Musk is not doing it to go out there and become rich and all this other

00:15:02.340 stuff.

00:15:02.980 Elon Musk cannot help himself.

00:15:04.480 Jobs cannot help himself.

00:15:05.480 When he went to create a Pixar, he had a chip on his shoulder.

00:15:08.540 He wanted to prove a point.

00:15:09.820 You fired me, Apple.

00:15:10.920 Watch what I'm going to do.

00:15:12.140 There wasn't that element with Quibi.

00:15:14.340 It's just kind of like a business.

00:15:15.860 You know what?

00:15:16.220 It didn't work.

00:15:16.800 Did you see the statement?

00:15:17.980 Wasn't succeeding.

00:15:19.160 Maybe because of the idea.

00:15:20.700 Maybe because of timing.

00:15:21.840 But it's not succeeding.

00:15:23.040 So guess what?

00:15:24.020 We're just closing it down by two beasts, Katzenberg and Whitman.

00:15:29.000 These are not regular lightweight people, but they shut it down.

00:15:32.000 The other part of it is you're not connecting with your target audience.

00:15:36.960 Are you a tech company?

00:15:37.820 Are you a media company?

00:15:38.660 Because I don't know if you know or not, even though they have all this great content, they

00:15:42.680 didn't own most of it.

00:15:44.080 The content wasn't theirs.

00:15:45.920 The content wasn't owned by them.

00:15:47.680 So are you just a software that does this?

00:15:49.700 Because if you're just a technology company, that's a different story, versus Netflix goes

00:15:53.860 out and says, we're going to buy this content.

00:15:55.260 We're going to pay for it.

00:15:55.820 We're going to own the content.

00:15:57.200 Quibi didn't own most of their content.

00:15:59.400 And money alone won't do it.

00:16:01.640 They didn't listen to their audience fast enough.

00:16:03.560 When you're coming up and you have an MVP product, audience is going to tell you, we

00:16:06.320 don't like this.

00:16:06.840 We don't like that.

00:16:07.340 We don't like this.

00:16:07.840 You got to be faster to make the changes.

00:16:09.680 We just launched an app three weeks ago, two weeks ago.

00:16:12.620 And from day one, one night we stayed here.

00:16:14.740 I had four Zooms and people were calling on midnight till one o'clock in the morning.

00:16:18.600 We're staying.

00:16:18.980 I'm here with all my staff members.

00:16:20.720 We're answering questions because you got to listen to your users.

00:16:23.860 If you don't listen to your users quickly, you lose them, especially if you say your target

00:16:28.040 audience is young.

00:16:28.880 And last but not least, a couple of things.

00:16:31.700 Why did they quit?

00:16:32.700 Why are you shutting down?

00:16:34.020 How do you know this is not going to work out?

00:16:35.640 Why are you closing up shop?

00:16:37.040 How do you know it's not going to work out?

00:16:38.520 You realize Netflix, nothing major happened to Netflix until Netflix came out with Orange

00:16:43.860 is the New Black and Netflix came out with the House of Cards.

00:16:47.320 Nothing happened to Netflix until they came out with that.

00:16:49.960 The moment they came out with that, I remember I got calls, text messages, people telling me,

00:16:54.340 watch House of Cards, watch House of Cards, watch House of Cards.

00:16:56.600 Of course, I'm about to go to Tuscany, Italy.

00:16:58.700 I come home.

00:16:59.860 I watched all the 12 episodes throughout the night.

00:17:02.080 I couldn't go to sleep.

00:17:03.100 I said, I'm going to sleep on the flight to Tuscany, Italy just because my dad, a guy

00:17:06.820 named Carl, all my friends, you got to watch this.

00:17:08.700 So then, babe, I guess we need Netflix.

00:17:10.600 And we've had Netflix since then.

00:17:12.360 So they gave up maybe a little too early where they could add a little bit more momentum.

00:17:16.240 Six months of giving up and they're going to give $350 million back to the investors

00:17:20.300 and they're just going to move on.

00:17:21.500 I don't understand that concept.

00:17:22.680 Maybe the lawsuit is bigger than we know.

00:17:25.320 I don't know.

00:17:25.880 But six months is too quick.

00:17:27.600 Amazon needed Transparent before they took off.

00:17:30.000 Hulu need the hands-made tail. 1.00

00:17:31.940 Even Disney had the Mandalorian.

00:17:33.700 Isn't that the Star Wars series that you like?

00:17:35.320 They came out with that.

00:17:35.940 And boom, next thing you know, it takes off.

00:17:38.060 You know, at this point of the game, a part of it for me was exciting because you saw

00:17:43.960 Goldman, Alibaba.

00:17:46.120 You're like, oh my gosh, this could compete.

00:17:48.400 Capitalism's great when you got a lot of different ideas competing against each other.

00:17:51.200 But the other part of it is, if you, let's just say the lawsuit's not the big issue.

00:17:56.260 Let's just say the lawsuit's not the big issue.

00:17:57.940 Let's say it's not.

00:17:59.260 Let's say you decide to completely change the strategy before you throw in the towel and

00:18:03.700 you say, let's go get these big YouTubers and why don't we give them a different perspective

00:18:07.580 than give them the money?

00:18:08.520 What's that?

00:18:09.360 Don't give them money.

00:18:10.500 Give them equity.

00:18:11.320 What do you mean?

00:18:12.120 Give them equity.

00:18:12.900 Say, here's 10 million shares that we want to go find talent.

00:18:16.880 Hey, Mr. Beast, you want some shares?

00:18:18.420 Let's go build this thing to a $100 billion company.

00:18:20.340 Hey, you know, Logan and Jake, you guys want?

00:18:22.860 Let's give you some shares.

00:18:23.900 So give them ownership where they sell it.

00:18:26.320 Not $100,000 per minute type of stuff and see what these young bucks could do. 1.00

00:18:30.400 I mean, obviously, Mr. Beast has got 45 million subscribers because he knows what he's doing.

00:18:35.400 Why throw in the towel?

00:18:36.880 That part I fully don't understand after six months, especially when you still have $350

00:18:41.280 million.

00:18:41.880 I do understand you need more money to go create more content.

00:18:44.800 Maybe your strategy needs a massive change.

00:18:47.680 Netflix used to send those DVDs.

00:18:49.680 Do you remember you would buy?

00:18:50.860 They would send you and they would not have sent another one until you send it back to

00:18:54.000 them.

00:18:54.420 And that was a system.

00:18:55.340 Even my wife used to do that all the time with Netflix. 1.00

00:18:58.000 Four movies came in, send them back.

00:18:59.860 Another four movies came in, send them back.

00:19:02.040 And then Netflix adjusted and went to a completely different approach.

00:19:05.080 That $150 billion company. 0.99

00:19:07.000 Just because this didn't work at first doesn't mean you throw in the damn towel, Quibi. 1.00

00:19:11.240 So unless if there's something darker, bigger that we don't know about, I think they shouldn't 0.96

00:19:17.460 have given up.

00:19:18.180 And I think they should have gone at least for six more months, 12 more months.

00:19:21.440 Test this one more thing out and see what would have happened with these big YouTubers.

00:19:25.880 And then from there, if it failed, you don't lose a lot of money.

00:19:29.120 You gave up equity.

00:19:30.420 You didn't give up money.

00:19:31.420 You gave up equity.

00:19:32.740 Let them also go fight for it.

00:19:34.160 Anyways, I don't know.

00:19:34.900 That's my thoughts.

00:19:35.540 What do you think about what happened to these guys?

00:19:38.380 And if you're watching this video saying, Pat, you know, I enjoyed the way you broke down

00:19:41.820 this whole Quibi concept.

00:19:43.140 I got another video I want you to watch.

00:19:44.680 It's a whole concept about Disneyland and Disney World.

00:19:47.220 What happened to Disneyland?

00:19:48.860 Both Disney owned company, both ran by Bob Chapin and if I'm saying the name correctly,

00:19:54.700 and Bob Iger and executive chairman and CEO.

00:19:58.280 One is in LA.

00:19:59.300 One is in Anaheim.

00:20:00.340 One is in Florida.

00:20:01.500 One is in California.

00:20:02.920 California one still isn't open for 200 plus days.

00:20:04.920 Florida wasn't open July 11th.

00:20:06.980 What's the difference?

00:20:07.780 If you haven't seen that video, I highly recommend you click here to watch that video as well.

00:20:12.300 And then if you're not subscribed to the channel, please do so.

00:20:14.320 Thanks for watching, everybody.

00:20:15.140 Take care.

00:20:15.600 Bye-bye.

Valuetainment - October 27, 2020

How Quibi Burned $2 Billion in 6 Months

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