Forget YouTube or TikTok: start-up bets you’ll pay to watch its video clips, and it has the backing of Hollywood stars like Steven Spielberg and Chrissy Teigen

Quibi is preparing to offer movies, shows and other short form video designed for viewing on mobile devices

Founded by Jeffrey Katzenberg and led by Meg Whitman, Quibi will launch in April and has already sold its first-year advertising slots, to Google among others

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Would you pay a premium to watch short clips like you do now on YouTube? A new company, founded by Disney studios chief and DreamWorks co-founder Jeffrey Katzenberg, is betting that you will. Photo: Bloomberg

Published: 10:00pm, 12 Jan 2020Updated: 10:00pm, 12 Jan 2020

A start-up heavily backed by Hollywood is wagering that you’re ready to set aside YouTube and TikTok to watch star-studded short videos on your phone – for a price.

The company behind this billion-dollar bet is Quibi, which is preparing to offer movies, shows and other short form video designed for viewing in short bursts on mobile devices. It’s an enormous gamble, especially considering that several earlier efforts in mobile entertainment – most notably Verizon’s ill-fated Go90 service – fell flat.

Founded by former Disney studios chief and DreamWorks co-founder Jeffrey Katzenberg and led by former Hewlett Packard Enterprise chief executive Meg Whitman, Quibi is heavy on big ideas and Hollywood muscle. It has backing from all the major movie studios and entertainment companies, US$1 billion invested in original programming, and star power in the form of creators and producers from Steven Spielberg to Chrissy Teigen.

Quibi plans to launch on April 6. It will charge US$5 a month for an ad-supported service, and US$8 a month for an ad-free version.

Jeffrey Katzenberg (left) and Meg Whitman are photographed at their start-up Quibi. Photo: TNS

Company executives argued at last week’s CES that Quibi will offer the first entertainment platform designed exclusively for the phone.