Roku will purchase the content library of the short-lived streaming service Quibi to expand its free channel, which includes ads.
Quibi – whose name combines the words “quick” and “bite” (bite) – raised $ 1.75 billion from investors that included large Hollywood companies such as Disney, NBCUniversal and Viacom and produced shows he released. in sandwiches. 10-12 minutes, with the idea of serving people with little time to watch videos in places like lines or transportation.
However, it has entered a market already saturated with short videos from YouTube, TikTok and other platforms whose content is essentially generated at no cost. And it was 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 created its business as a hub for other streaming services, but recently began storing content for its free channel, Roku Channel.
With the acquisition, Roku will have 75 assorted shows related to big names in the industry: Idris Elba, Kevin Hart, Liam Hemsworth, Anna Kendrick, Nicole Richie, Chrissy Teigen and Lena Waithe appeared in Quibi shows. This includes more than 12 shows that were not aired before Quibi closed. The shows target a demographic age of 18-35, an attractive segment for advertisers.
Roku spokesman Dallas Lawrence said the short form will work well for the Roku channel because there are “natural trade breaks built into the program.”
Quibi content, created to be viewed on mobile phones, can still be viewed on mobile devices via the Roku app.
Roku says its channel reached 61.8 million people in the last quarter, double the previous year. More people watch for entertainment during the pandemic because they stay home, but there is even 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 includes over 40,000 free movies and shows, as well as 150 free linear TV channels.
The financial details of the transaction were not disclosed on Friday.