Roku will acquire the content library of the ephemeral streaming service Quibi to expand its free channel, which includes commercials.
Quibi – the name combines the words “quick” and “bite” – raised $ 1.75 billion from investors that included major Hollywood companies such as Disney, NBCUniversal and Viacom, and produced programs which he threw in sandwiches for 10 to 12 minutes, with the idea of serving people with little time to watch videos in places like rows or transportation.
However, it entered a market that was already saturated with short videos from YouTube, TikTok and other platforms whose content is generated essentially at no cost. And it was also launched in April 2020, when the global pandemic changed the routine of millions of people who stopped moving from home to work. The service closed last month.
Roku set up its business as a core for other streaming services, but has recently begun accumulating content for its free channel, Roku Channel.
With the acquisition, Roku will have 75 varied programs linked to big names in the industry: Idris Elba, Kevin Hart, Liam Hemsworth, Anna Kendrick, Nicole Richie, Chrissy Teigen and Lena Waithe have appeared on Quibi programs. This includes more than 12 programs that failed to air before Quibi closed. The programs are aimed at an 18- to 35-year-old demographic, an attractive segment for advertisers.
Roku Dallas spokesman Lawrence said the short format will work well for Roku Channel, as there are “cuts to natural commercials built into the programming.”
Quibi content, created to be viewed on mobile phones, can still be viewed on mobile devices through the Roku app.
Roku says its channel reached 61,800,000 people in the last quarter, double the previous year. More people are watching streaming entertainment during the pandemic because it stays at home, but there is more competition as well. New services including Discovery +, NBCUniversal’s Peacock, HBOMax and others have been launched to compete with services such as Netflix and Hulu.
Roku Channel includes more than 40,000 free movies and programs, as well as 150 free linear TV channels.
No financial details of the deal were revealed on Friday.