Streaming service Quibi is "beginning to feel the pinch of its lackluster performance since launching last month, as major advertisers seek to defer payments and the company looks to cut losses," according to Mullin & Vranica of the WALL STREET JOURNAL. Advertisers including Pepsi, Yum Brands, Taco Bell, A-B InBev and Walmart "have asked for the changes because of concerns about the service's low viewership or the impact of the coronavirus pandemic on their businesses." Quibi as of last week had been "installed by users about 4.2 million times, and the company had signed up 1.5 million users to a free 90-day trial." Quibi is targeting "about seven million paying subscribers in its first year and planning to have 16 million customers in three years." Quibi execs said that an "over-reliance on scripted programming, a pool of inactive users and lower-than-hoped enthusiasm from some viewers all have affected the launch." Quibi CEO Meg Whitman said that the primarily short-form platform is "taking a number of steps to reduce costs, including delaying or postponing hiring." One source said that the company "guaranteed it would deliver a certain number of ad views over a certain period," but lower-than-expected viewership has "fueled worries that Quibi won't be able to meet those guarantees and will have to give additional ad time to make up for the shortfall" (WALL STREET JOURNAL, 5/27).
