Roku acquires Quibi’s library of content

Roku announced Friday that it is acquiring the rights to stream all of Quibi’s library of 75 original shows to its more than 50 million users.

Why it matters: The deal is part of a broader effort by Roku to offer free content that the platform believes will help attract and retain subscribers.

Details: Specifically, the content from Quibi will help Roku attract a younger audience, which provides a lucrative advertising opportunity.

• All of Quibi’s content will live on Roku’s free, ad-supported channel. The Roku Channel is one of the most popular on Roku’s smart TV platform.
• Roku acquired Quibi Holdings, LLC, the company that holds all of Quibi’s content distribution rights following an internal restructuring.
• The deal is really just about acquiring content. No employees were acquired and financial deal terms were not disclosed.

What they’re saying: “The most creative and imaginative minds in Hollywood created groundbreaking content for Quibi that exceeded our expectations,” said Quibi founder Jeffrey Katzenberg.

• "We are thrilled that these stories, from the surreal to the sublime, have found a new home on The Roku Channel.”

The big picture: Quibi had struggled to hit its subscriber growth targets during the global pandemic.

• The app shut down just six months after launch. Its high-profile founders Meg Whitman and Jeffrey Katzenberg had touted it as a revolutionary new way to consume premium content on phones.

Go deeper: Quibi says it’s shutting down after six months