GZV #10: Where did Quibi go wrong?
Startups. Trends. News. All From a Gen Z view.
This weeks themes
Frictionless Coffee Consumption ☕️
Gap year? 📓
Quibi 📺
Recently Funded Startups
Gen Z'ers may like Popshop Live.
Who are they?
Popshop Live is a mobile live streaming marketplace where talented individuals can create and host their own shopping channel
Why the rating (Pros)?
Gen Z'er loves influencers and some decisions in our lives are definitely due to what they advertise.
This platform may allow influencers to retain more of their earnings which, in turn, motivates them to use the platform.
Cons:
The influencer market isn't extremely large, and it becomes even smaller when you focus on influencers with a fashion-focus.
I'll be straight forward, guys will really not use this platform, it will mostly be fashion-focused females, so the audience may not be large enough.
Gen Z'ers will like Joe Coffee.
Who are they?
Joe Coffee provides a mobile ordering and loyalty platform for indie coffee to compete with national corporate chains.
Why the rating (Pros)?
Gen Z loves small, local coffee shops. When around them, we tend to visit them often, it has a certain indescribable trendy feeling that we love.
Gen Z also isn't known to be patient, we want our coffee when we arrive, Joe coffee covers this with a mobile ordering feature.
This platform removes friction from purchasing coffee from local shops, a game-winning strategy from our view.
Cons:
The main con we see is competitors that are trying to do the same thing with small local shops.
Gen Z Trend of the week - 🏫
Should I take a gap year?
This question has most likely run through 75% of college students heads in the past 3 months when thinking about their 2020-2021 school year. Let's dive in.
Why take a gap year?
Well, as I explained in a recent tweet, college isn't really going to be college. Especially if it goes online again.
Aren't you there to just get a degree?
Yes and no. While we value the education we are getting thats only half of it. The social experience of college is often described as "the best four years of your life" and we are likely going to miss over a year of "normal" college.
What would you do in place of school?
Most kids who are thinking about a gap year are looking into internship opportunities. Therefore, in place of an education, they can gain a meaningful work experience. Others are just going to look to work at a normal job to earn as much money as they can in their year off. Student may also look to take some online courses to learn a few skills while away from school.
What to look for with this trend:
- Education platforms that provide online courses for low-cost, think Udemy.
- A rise in fall/spring internships to help these students gain experience.
- Programs to replace education during this gap year, think coding academy.
Where Quibi Went Wrong
Quibi's three month trial recently ended and had a churn rate of 92%. This means only 8% of users converted into paying customers. Where did they go wrong? The length of content.
If you're wondering why you haven't seen this chart before it's because I just made it. So let me explain.
Quibi made a mistake with the length of their content when targeting the Gen Z market. Although we have a short attention span, it does't apply in all aspects. The entertainment area is one where that idea becomes variable.
>1 Min: Tik Tok isn't a show or series, it's individual videos that are all different. 0-60 second content pieces have worked for years through instagram and snapchat, Tik Tok just centralized in a very creative way. This allows us to enjoy the content for 2 minutes, 45 minutes, or just however long we'd like to stay on the app.
20-40 min: I used Netflix as the example here because most of Gen Z is active on this platform. This is where we get into telling a storyline, these shows have been 20-40 minutes for years now. We are used to this length and love it. So, trying to change existing consumer behaviors now becomes very, very hard.
The problem comes when you try blend these two together in the form of 10 minute content with a storyline.
10 Min: When Gen Z wants a storyline, we sit down and digest the content. When we want a quick fix, we go to Tik Tok. There isn't really an in-between. The only reason the interest isn't at 0 for 10 min is because youtube videos have a variety of length, some of which are 10 minutes. Even then, these videos aren't following a storyline.
Bottom line: When Gen Z consumes content with a storyline, like shows on Netflix, we are used to a 20-40 minutes length. When Gen Z consumes content withouta storyline, this is where content at 10 minutes can strive.
My recommendations:
1. Try to become the youtube for influencers. Instead of having influencers post content on youtube, move them to Quibi. This will require incentives for influencers.
2. Start to make 20 minute shows. It may be this simple. You have a great team and great talent, use it.
It will be exciting to see how Quibi decides to pivot in the coming months.
Quote of the week:
"*IF* product = 🥇 *THEN* everything else = ✅"
- A smart anonymous person
Feel free to email or text with any questions or comments about the newsletter, Gen Z, or startups.
thomas@genzvoice.com
203-628-6006