It's surprising how Quibi has had trouble filling the top of the sales funnel and converting users to paid given how much viral content and positive word of mouth you see on Twitter. Wait! That's not true.
Does Quibi have a premature scaling problem?
Spending capital on growth before you have a product that people want to buy (AKA premature scaling) is a giant bonfire of cash. Andy Rachleff puts it this way: “If you don’t have exponential word of mouth growth, you don’t have product/market fit.” First nail it, then scale it.
Long time Netflix board member and 🐐 entrepreneur Rich Barton: "If you really have a flywheel, it is OK to spend money to get it spinning. It is OK to do un-economic things to hand-crank stuff, so long as once it is spinning you can take your hand away.” No flywheel? CAC kills!
Skipping the product/market fit phase and going right to marketing at scale is .... well, not wise. "Hundreds" of people using the service would have revealed there is no word of mouth? Why did Quibi skip discovering/proving what Andy Rachleff calls "the value hypothesis" first?
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