In May, Quickflix announced it would be partnering with fellow Australian streaming platform, Presto, to offer its customers Presto’s subscription video content. That deal fell through Tuesday, when Quickflix said in a statement commercial conditions had not been met.
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“The Shanghai-based company produces original Chinese language film and TV, participates in coproduction in China and worldwide markets and has a slate of future production including a coproduction with a US studio”.
Late last week, Quickflix asked the ASX to suspend trading on the company announcing it was in the midst of talks with an global buyer and then asked for a further extension on Monday.
The troubled local Netflix competitor Quickflix has announced that its reseller deal with Presto has collapsed.
Netflix launched to much hype in Australia in March, causing a mass exodus of Quickflix customers in April and May.
The proposed takeover is subject to due diligence and regulatory approvals and Quickflix said it would provide a market update by August 20.
Paying customers declined by 13% to 107,969 in the June quarter, a loss of 15,584. The company said it was pursuing other content to add to its service, including deals with other streaming services.
For a company that now has less than a million dollars on its books, Quickflix also noted that its Shanghai-based counterpart “is profitable and generates free cash-flow” and that, combined, the companies would have “a significantly improved financial outlook”. While the company first welcomed the arrival of another ‘-flix’ in Australia, saying Netflix would help to grow interest in streaming across the board, Quickflix has since owned up to losing customers to its rival.
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“Quickflix has made a considerable investment over a number of years to create a leading scalable streaming platform supporting a wide range of major consumer devices”, the company said in a statement to the ASX.
