Roku will acquire the content library of the short-lived streaming service Quibi to expand its free channel, which includes commercials.
Quibi – whose name combines the words “fast” and “bite” – raised $ 1.75 billion from investors including major Hollywood companies such as Disney, NBCUniversal and Viacom, and produced shows it launched in snacks. 10 to 12 minutes, with the idea of serving people who have limited time to watch videos in places such as lines or transportation.
However, it entered a market already saturated with short videos from YouTube, TikTok, and other platforms whose content is essentially generated for free. 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 founded its company as a hub for other streaming services, but has recently started to store content for its free channel, Roku Channel.
With the acquisition, Roku will have 75 different shows 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 shows. This includes more than 12 shows that didn’t air before Quibi closed. The programs are aimed at an 18- to 35-year-old target group, an attractive segment for advertisers.
Roku spokesman Dallas Lawrence said the short form will work well for the Roku channel, as it has “natural commercial breaks built into the schedule.”
Quibi’s content, made to be viewed on cell phones, can still be viewed on mobile devices through the Roku app.
Roku says its channel reached 61.8 million people in the quarter, doubling from the previous year. During the pandemic, more people watch streaming entertainment because they stay at home, but there is also more competition. New services, including Discovery +, NBCUniversal’s Peacock, HBOMax, and others, have been launched to compete with services such as Netflix and Hulu.
Roku Channel features over 40,000 free movies and shows as well as 150 free linear TV channels.
Financial details of the deal were not disclosed on Friday.