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25 Brands Line Up for Debut of Mobile-Only Streamer Quibi

By Rich Duprey - Mar 12, 2020 at 10:54AM

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The short-form video platform has limited advertising to just 10 companies for its first year.

The new short-form video-streaming platform Quibi has yet to debut, but it has already sold out its entire card of advertising slots for the first year. Some 25 brands from 10 different companies have lined up to be part of the mobile-first streamer, which will offer original programming in a bite-sized, 10-minute-episode format.

The new service is scheduled to launch next month and intends to build on the foundations of short-burst video content that were laid by platforms like Facebook's IGTV on Instagram and Snap Originals.

Woman smiling at smartphone

Image source: Getty Images.

A new way to digest video

Quibi will carry original programming from the likes of Steven Spielberg, Steven Soderbergh, Guillermo del Toro, Sam Raimi, and others, as well as news from NBC and the BBC, and reality TV shows. The project was founded by Jeffrey Katzenberg, and Meg Whitman serves as CEO.

A report by Axios says Quibi will feature non-skippable ads from a roster of household name brands including Anheuser-Busch InBev's (BUD -1.46%) Bud Light; Procter & Gamble's (PG -0.03%) Charmin; and Doritos, Mountain Dew, and Pepsi from PepsiCo (PEP -0.13%).

Quibi limited the advertising to just 10 companies for the first year, which generated $150 million in revenue, and though it isn't expanding that group yet, the advertisers in it will be allowed to switch which products they promote during that period.

For example, Alphabet's (GOOG -2.27%) (GOOGL -2.46%) Google is among the first tranche of advertisers. It may push Google Cloud to start, then switch to YouTube or Waymo later on.

These early partners were also promised they would be exclusive in their verticals, so don't expect to see Coca-Cola ads on Quibi any time soon. Ads will run for 6, 10, or 15 seconds.

 

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool recommends Anheuser-Busch InBev NV. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOG
$118.12 (-2.27%) $-2.74
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$117.21 (-2.46%) $-2.96
The Procter & Gamble Company Stock Quote
The Procter & Gamble Company
PG
$149.73 (-0.03%) $0.04
Pepsico, Inc. Stock Quote
Pepsico, Inc.
PEP
$180.17 (-0.13%) $0.23
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
META
$167.96 (-3.84%) $-6.70
The Coca-Cola Company Stock Quote
The Coca-Cola Company
KO
$65.17 (-0.08%) $0.05
Anheuser-Busch InBev SA/NV Stock Quote
Anheuser-Busch InBev SA/NV
BUD
$52.51 (-1.46%) $0.78
Snap Inc. Stock Quote
Snap Inc.
SNAP
$11.56 (-7.96%) $-1.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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