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Quibi reportedly lost 90 percent of early users after their free trials expired

theverge.com

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Re: Quibi reportedly lost 90 percent of early users after their free trials expired

#11

Post by griffinkelly »

philistine wrote: post #7
creaghpatr wrote: post #2

>According to the firm’s new report on Quibi’s early growth, the short-form video platform signed up about 910,000 users in its first few days back in April. Of those users, only about 72,000 stuck around after the three-month free trial, indicating the app had about an 8 percent conversion rate. I fully expect Quibi to crash and burn under the weight of the content costs among other things, but is an 8% conversion r…

I’d be shocked to hear that only 8% of people convert with Netflix for example. Or Disney+ or any of the streaming services.

Do those companies publish their numbers since they're public?

Re: Quibi reportedly lost 90 percent of early users after their free trials expired

#12

Post by _fat_santa »

Quibi seems to be trying to convert a users who would normally kill 5-10 minutes on Snapchat or Instagram into killing that same time on their platform. The problem is that this user pool is perfectly content killing thier 5-10 minutes on Snapchat or Instagram and convincing them that they actually need the "Snapchat or Netflix" is going to be very hard, especially when they charge a subscription.

If I am only willing to kill 5-10 minutes on my phone, my investment in whatever it is ill be killing time on is very low. So I suspect it's going to be very difficult to convince these users to pay a monthly fee for a service when Snapchat offers a similar level of gratification for free.

Re: Quibi reportedly lost 90 percent of early users after their free trials expired

#13

Post by mynegation »

sulam wrote: post #10
creaghpatr wrote: post #2

>According to the firm’s new report on Quibi’s early growth, the short-form video platform signed up about 910,000 users in its first few days back in April. Of those users, only about 72,000 stuck around after the three-month free trial, indicating the app had about an 8 percent conversion rate. I fully expect Quibi to crash and burn under the weight of the content costs among other things, but is an 8% conversion r…

Around twice that would be typical for content service trials.

But who has that kind of conversion rate? Disney with all its weight managed to convert not much more than that - percentage wise, although much more in absolute terms and article make that point. Are there any data points from Netflix, Hulu, Spotify. Amazon Prime is a bit of a different beast, as it is a bundle.

Re: Quibi reportedly lost 90 percent of early users after their free trials expired

#14

Post by ObsoleteNerd »

8% is not a terrible conversion rate at all, and they’ve only just started. I’m not a Quibi user and have no vested interest in them either way but this is the third different article I’ve seen in the last week or 2 talking about how terrible they’re doing and now they’re about to crash and burn, because of an 8% conversion?

Comparing them to Disney is ridiculous too, it’s Disney! With multiple generations obsessed with their library and people literally counting down the days until their launch, they got a 10% conversion... but 8% is horrible and the end of Quibi?

Re: Quibi reportedly lost 90 percent of early users after their free trials expired

#15

Post by Nextgrid »

ObsoleteNerd wrote: post #14

8% is not a terrible conversion rate at all, and they’ve only just started. I’m not a Quibi user and have no vested interest in them either way but this is the third different article I’ve seen in the last week or 2 talking about how terrible they’re doing and now they’re about to crash and burn, because of an 8% conversion? Comparing them to Disney is ridiculous too, it’s Disney! With multiple generations obsessed w…

On the other hand, Disney has mountains of cash behind them while Quibi is VC-funded and VCs typically want to see results to decide whether to continue or cut their losses. Disney can get away with a terrible conversion rate forever while a startup can run out of funding very quickly.

Re: Quibi reportedly lost 90 percent of early users after their free trials expired

#16

Post by Macha »

mindvirus wrote: post #3
creaghpatr wrote: post #2

>According to the firm’s new report on Quibi’s early growth, the short-form video platform signed up about 910,000 users in its first few days back in April. Of those users, only about 72,000 stuck around after the three-month free trial, indicating the app had about an 8 percent conversion rate. I fully expect Quibi to crash and burn under the weight of the content costs among other things, but is an 8% conversion r…

Especially given that Disney managed 11% conversion with their awesome catalog and brand recongition. It seems 8% isn't so bad.

And Disney+ trials do roll over into subscriptions without user action which is mentioned as a factor elsewhere in this thread.

Re: Quibi reportedly lost 90 percent of early users after their free trials expired

#17

Post by duxup »

ObsoleteNerd wrote: post #14

8% is not a terrible conversion rate at all, and they’ve only just started. I’m not a Quibi user and have no vested interest in them either way but this is the third different article I’ve seen in the last week or 2 talking about how terrible they’re doing and now they’re about to crash and burn, because of an 8% conversion? Comparing them to Disney is ridiculous too, it’s Disney! With multiple generations obsessed w…

Did the user have to provide a credit card, are a lot of these 8% maybe just folks who forgot to unsubscribe?

I feel like this conversion rate thing really "depends".

Re: Quibi reportedly lost 90 percent of early users after their free trials expired

#19

Post by sulam »

mynegation wrote: post #13
sulam wrote: post #10

Earlier quoted context omitted.

Around twice that would be typical for content service trials.

But who has that kind of conversion rate? Disney with all its weight managed to convert not much more than that - percentage wise, although much more in absolute terms and article make that point. Are there any data points from Netflix, Hulu, Spotify. Amazon Prime is a bit of a different beast, as it is a bundle.

Spotify, Netflix. Also something like Tinder’s premium service is in the teens.

Re: Quibi reportedly lost 90 percent of early users after their free trials expired

#20

Post by danso »

ObsoleteNerd wrote: post #14

8% is not a terrible conversion rate at all, and they’ve only just started. I’m not a Quibi user and have no vested interest in them either way but this is the third different article I’ve seen in the last week or 2 talking about how terrible they’re doing and now they’re about to crash and burn, because of an 8% conversion? Comparing them to Disney is ridiculous too, it’s Disney! With multiple generations obsessed w…

The recent major articles about Quibi being a disaster are not been about conversion rate, but about its huge costs combined with questionable proposition (which was particularly affected by quarantine life changes), and its poor performance on app store charts:

https://www.vulture.com/2020/07/is-anyone-watching-quibi.htm...

> As of early July, over 5 million phones had downloaded the Quibi app. Of those, 1.5 million had registered to use it, and this was with Quibi offering a three-month free trial and doing saturation marketing. (When it paused the marketing during the Black Lives Matter protests, Quibi’s App Store ranking fell to No. 1,477.) In light of its disappointing user numbers, Quibi’s advertisers have reportedly asked to renegotiate their deals. The company was forced to go into capital-conservation mode. Executives took a 10 percent pay cut.

Also, 8% does not sound like a good conversion rate for the entertainment industry, even ignoring the disparity between subscription revenue and the hundreds of millions already spent for content:

> *Meanwhile, the 90-day free trials will begin expiring this month. The industry conversion rate from a free trial to a paid subscription hovers below 33 percent. According to research firm Parks Associates, if that holds true for Quibi, it could mean less than 500,000 people would be watching a network that spent hundreds of millions of dollars on brand-new premium content.

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