India, July 9 -- Quibi, Jeffrey Katzenberg's short-form, mobile-focused video streaming service, has encountered tough sledding since its launch on April 6.

After locking in lots of funding (about $1.75 billion at last count) and riding a wave of hype into the CES event in Las Vegas in January, the service has stumbled out of the block amid reports about underperforming usage paired with advertiser complaints, a pandemic that caused consumers to stay home, an initial lack of support for viewing on TV screens, a tricky lawsuit focused on one of Quibi's critical technology differentiators, and questions about whether many of Quibi's initial customers will pay for the service when free trials end.

Adding to the intrigue, The Wall Street Jo...