The Pandemic has caused a global dive in ad rates for every content distributer, not just Quibi:
“As TV networks start to run out of content to air and big advertiser draws like live sports are tabled, those companies are warning about severe advertising declines ahead.
“In recent days, companies including ABC and ESPN parent Disney, Fox Corp., AMC Networks, NBCUniversal parent Comcast, ViacomCBS and Discovery reported earnings that showed how TV is trending as advertisers are pulling spend or postponing campaigns until later in the year.”
AMC has reported an expected ad revenue decline of 30% in the second quarter compared to last year. So Quibi having to renegotiate rates with advertisers is as much about the global trend as their not meeting expectations for sign ups.
A concern that wasn’t mentioned in Chris’s WSJ share, or yours from profgalloway.com, is that customers now working from home or on furlough are more likely to blitz through available content faster than if they had watched during breaks at work. Maybe that’s why they didn’t originally allow viewing from your TV at home: the demand rate for new content in the pipeline would be slower if your viewing time was only while at work.