Quibi Was Supposed to Revolutionize Hollywood. Here’s Why It Failed.

When Jeffrey Katzenberg and Meg Whitman were developing plans for a new streaming-video service called Quibi, they got a warning from advisers. Make sure it can be seen on TVs, not just phones.

The two executives didn’t follow the recommendation, according to people familiar with the matter, and designed the service exclusively for people on the go. The company eventually changed course after launching, and in October, it released TV apps for some of the biggest streaming-media platforms.

It...