What do you believe was Quibi's pricing objective and what pricing strategy do you think Quibi used? Now, put yourself in the shoes of the Director of Pricing at Quibi: what price and what pricing strategy would you recommend? Be sure to use evidence and concepts from the lecture and/or your textbook to substantiate your answer. Quibi launched on April 6, 2020. The mobile-first streaming service differentiated itself by developing content that was created to be bite-sized: shows were called chapters, and each lasted 5- to 10-minutes. The chapters were released over several days (not all at once like other streaming platforms). Viewers were not able to screen share or take screenshots of content for sharing or meme-making purposes. Also, the content was also only available via the Quibi smartphone app initially, but on October 19th, 2020 the app became available on Apple TV, Fire TV and Google TV/Android TV (no ROKU). Earlier this summer, Quibi added support for Apple's AirPlay (to let users launch streams on Apple TV boxes and other compatible devices from mobile apps) and Google's Chromecast and Chromecast-integrated TVs. In the lead-up to launch, Quibi had raised about $1.75 billion from high-profile investors, and an additional $150 million in advertising from blue-chip advertisers, including PepsiCo Inc., Walmart Inc, and Anheuser-Busch InBev SA. With the seed funding, Quibi invested heavily in highly produced, high-quality content; original content at launch starred and/or was produced by well-known talent, including Kevin Hart, John Travolta, Kirby Jenner, Chrissy Teigen, Idris Elba, Kristen Bell, Joe Jonas, Jennifer Lopez, Aaron Rodgers, Chance the Rapper, Liam Hemsworth, Sophie Turner, Reese Witherspoon and projects from directors including Steven Spielberg and Guillermo del Toro, among many others. A significant amount of unreleased content has already been produced and was scheduled for release in the upcoming months. To attract an audience, Quibi invested an estimated $63 million on TV, digital, and print ads, according to ad intelligence firm MediaRadar. Nearly 9% of that spend was on a 30-second commercial in the Super Bowl, which aired last February. While that's a significant amount of money on advertising, it trails when compared to how much four other major players spent at launch: Amazon Prime, Disney+, Hulu, and Peacock. Quibi's first-day app downloads were approximately 300,000, garnering a top 3 spot in app stores behind Tik Tok and Zoom. But downloads and daily users declined rapidly, and Quibi was tracking to achieve only 30% of its year one (Y1) paid subscribers goal of 7.4 million by April 2021. Streaming Service Monthly Fee Free Trial Advertising Quibi $4.99 14 days No Netflix $8.99 None No Hulu $5.99 30 days Yes Disney+ $6.99 None No Sling TV $30.00 3 days Yes YouTube TV $64.99 7 days Yes Apple TV+ $4.99 7 days No Peacock Free / $4.99 7 days Yes HBOMAX $14.99 7 days No Philo $20.00 7 days Yes Fubo $64.99 7 days Yes Amazon Prime Video $8.99 30 days Yes What do you believe was Quibi's pricing objective and what pricing strategy do you think Quibi used? Now, put yourself in the shoes of the Director of Pricing at Quibi: what price and what pricing strategy would you recommend? Be sure to use evidence and concepts from the lecture and/or your textbook to substantiate your answer. Quibi launched on April 6, 2020. The mobile-first streaming service differentiated itself by developing content that was created to be bite-sized: shows were called chapters, and each lasted 5- to 10-minutes. The chapters were released over several days (not all at once like other streaming platforms). Viewers were not able to screen share or take screenshots of content for sharing or meme-making purposes. Also, the content was also only available via the Quibi smartphone app initially, but on October 19th, 2020 the app became available on Apple TV, Fire TV and Google TV/Android TV (no ROKU). Earlier this summer, Quibi added support for Apple's AirPlay (to let users launch streams on Apple TV boxes and other compatible devices from mobile apps) and Google's Chromecast and Chromecast-integrated TVs. In the lead-up to launch, Quibi had raised about $1.75 billion from high-profile investors, and an additional $150 million in advertising from blue-chip advertisers, including PepsiCo Inc., Walmart Inc, and Anheuser-Busch InBev SA. With the seed funding, Quibi invested heavily in highly produced, high-quality content; original content at launch starred and/or was produced by well-known talent, including Kevin Hart, John Travolta, Kirby Jenner, Chrissy Teigen, Idris Elba, Kristen Bell, Joe Jonas, Jennifer Lopez, Aaron Rodgers, Chance the Rapper, Liam Hemsworth, Sophie Turner, Reese Witherspoon and projects from directors including Steven Spielberg and Guillermo del Toro, among many others. A significant amount of unreleased content has already been produced and was scheduled for release in the upcoming months. To attract an audience, Quibi invested an estimated $63 million on TV, digital, and print ads, according to ad intelligence firm MediaRadar. Nearly 9% of that spend was on a 30-second commercial in the Super Bowl, which aired last February. While that's a significant amount of money on advertising, it trails when compared to how much four other major players spent at launch: Amazon Prime, Disney+, Hulu, and Peacock. Quibi's first-day app downloads were approximately 300,000, garnering a top 3 spot in app stores behind Tik Tok and Zoom. But downloads and daily users declined rapidly, and Quibi was tracking to achieve only 30% of its year one (Y1) paid subscribers goal of 7.4 million by April 2021. Streaming Service Monthly Fee Free Trial Advertising Quibi $4.99 14 days No Netflix $8.99 None No Hulu $5.99 30 days Yes Disney+ $6.99 None No Sling TV $30.00 3 days Yes YouTube TV $64.99 7 days Yes Apple TV+ $4.99 7 days No Peacock Free / $4.99 7 days Yes HBOMAX $14.99 7 days No Philo $20.00 7 days Yes Fubo $64.99 7 days Yes Amazon Prime Video $8.99 30 days Yes