Just two months after its Aussie launch, video app Quibi is kaput

Mobile-only video app Quibi is shutting down, for good.

Founded in the US in 2018, Quibi only launched in Australia this August, and has failed to find enough paying users and advertisers to keep investors happy.

The company said in a statement this week that "Quibi is not succeeding", and now plans to shut down and sell its assets to pay outstanding liabilities with the balance going to shareholders.

The startup was the brainchild of one-time Disney Studio chief and DreamWorks co-founder Jeffrey Katzenberg and former Hewlett-Packard CEO Meg Whitman.

The service offered “movie quality” short-form original shows, but none hit the jackpot in the competitive content wars with more established players like Netflix.

Chance the Rapper, Will Smith, Joe Jonas, Jennifer Lopez, Kevin Hart and Liam Hemsworth were among Quibi's original creators, who pocketed advances to create content for the platform.

Quibi previously raised US$1.75 billion ($2.45 billion) from investors including major Hollywood players like Disney, NBCUniversal and Viacom to drive new users.

It launched in Australia with an ad-supported tier and an ad-free option for AU$6.99 per month.

Quibi’s Australian arrival came a month after Foxtel Media’s entertainment, live sports and lifestyle video streaming service Tubi, amped up its local presence.