The Entertainment Value Curve: Why TikTok is On Fire and Quibi Isn't

The Entertainment Value Curve: Why TikTok is On Fire and Quibi Isn't

In the fast-paced world of mobile video apps, success is not solely dependent on the viewing experience but also on the social experience it provides. This is evident in the contrasting fortunes of TikTok and Quibi. When Meg Whitman, former CEO of Quibi, described the platform as "one of the most disruptive and timely ideas," it seemed like a surefire hit. However, Quibi failed to capture the attention of users, while TikTok soared to new heights. So, what made TikTok a success and Quibi a failure?

One key factor lies in the concept of the Entertainment Value Curve. The Entertainment Value Curve is a formula that combines production value and social value to determine the overall entertainment value of a mobile video app. The Y-axis represents social value, which measures the level of personal connection viewers have with the content. The X-axis represents production value, which measures the quality of the content relative to the highest quality in the genre. By finding the right balance between these two factors, an app can achieve optimal product/market fit.

Different platforms have found varying degrees of success along the Entertainment Value Curve. Snapchat, for example, places a strong emphasis on social value, allowing anyone to create fun content using AR lenses. The production value may be low, but the social value is high, resulting in a highly engaging platform. Instagram took a different approach, lowering the production bar with features like IG Stories, making it easier for users to create and share lower production value content. The Explore feed also provides higher production value content with some personal relevance.

TikTok, on the other hand, places greater emphasis on topical content first and socially connected content second. Its design breaks down the barrier between the audience and the creator, creating a more intimate and engaging experience. The algorithm is also designed to give new content a chance at virality, leveling the playing field for creators. This combination of high social value and lower production value has resonated with users, resulting in TikTok's immense popularity.

Netflix, at the opposite end of the spectrum, focuses on high production value content. However, its social value is primarily derived from the connection between the viewer and the creator. The production value of Netflix shows is so high that only elite Hollywood content creators can meet the platform's standards. This limits the number of people creating content, reducing the social value.

Understanding the creation participation rate is essential in measuring social value. Platforms like Instagram have focused on increasing creation participation, encouraging more users to create content. The distribution of content also varies across platforms, with high production value platforms having shorter tails and low production value platforms having longer tails.

Quibi's downfall can be attributed to its failure to optimize for the Entertainment Value Curve. The platform added constraints like format, length, and viewing conditions, which made it harder to compete with the production value of Netflix. However, it did not supplement those constraints with increased social value, focusing too much on the "short" aspect rather than the shareability and social aspects that users crave.

The success of TikTok and platforms like Vine lies in their ability to tap into the snackable content trend. Snacks are not just enjoyable because they are quick; they are enjoyable because they are shareable. TikTok's looping feature makes it easy to share clips with friends, allowing for a social experience even when not physically together. This has become a form of gift-giving for Gen Z, further enhancing the social value of the platform.

So, what can businesses and creators learn from the success of TikTok and the failure of Quibi? Here are three actionable tips:

1. Prioritize social value: While production value is important, it's the social value that truly engages users. Focus on creating content that fosters a personal connection between the viewer and the creator. Encourage user-generated content and make it easy for users to share and engage with your content.

2. Find the right balance: The Entertainment Value Curve is all about finding the balance between production value and social value. Don't get caught up in trying to achieve high production value if it sacrifices the social value. It's the combination of the two that creates a truly engaging experience.

3. Tell a story: Investors and users alike respond to stories. When pitching your startup or creating content, lead with a compelling story that highlights the problem you are solving and why you care about it. Hook your audience early and keep them engaged throughout.

In conclusion, the success of mobile video apps like TikTok lies in their ability to find the sweet spot on the Entertainment Value Curve. By prioritizing social value and creating a platform that fosters personal connections, these apps have captured the attention and engagement of users. As businesses and creators, it's crucial to understand the importance of balancing production value and social value to create truly captivating content and experiences. So, go ahead, embrace the snackable content trend, and find your place on the Entertainment Value Curve.