I hope that this article gives you the answer to what happened to Rabb.it and where did it all go wrong for the company.
So, What happened to Rabb.it?
At the time when we discussed the tutorial on how to use rabbit, Rabb.it had over 4 million active users, so what went wrong with the company? Well, it did not have one but many issues. They did not have any revenue model planned for their business. This is something the business exists for, and the biggest issue they faced was they did not have investors. And in the starting years of any business huge capital is needed to fund the business and its operations. They planned to charge for their services from the users but by the feedback of people. The feedback was negative as they loved the app but not so much to pay for. The second option was to give advertisements, which to the advertisers was unappealing as advertising on top of someone else’s content to which we don’t have rights is obviously a matter to them. The user data could have been sold to the content creators. But again the creators won’t pay for it as the information they are selling is based on their content and purchasing content was not even an option because it is really expensive and they did not have a capital model for it. Rabb.it had to explain to their investors how they are not stealing content from the streaming services and are a legit business model. They had not done any marketing regarding the company or its product. Due to which it gets difficult to raise funds as they were unknown to the investors. Anyways, they got two investors who backed out of investing in Rabb.it at the last moment and they ran out of capital. They had to stop all their operations and on July 31, 2019, it was announced that its remaining assets, intellectual property, software stack, and several patents were acquired by streaming service Kast.
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