Struggling streaming service Quickflix makes play for chinese content

AFTER its efforts to find an Australian accomplice fell through, suffering online streaming service Quickflix has grew to become its sights to China. 

Quickflix has signed a memorandum of know-how to accumulate a Shanghai-primarily based film and television employer in a bid to form a global distributor of chinese language content material.

The pass comes just a day after Quickflix announced its agreement to resell content material from rival streaming provider Presto had fallen via.

Quickflix says the unnamed Shanghai agency is profitable and generates loose cash drift, which puts it in stark contrast to its Australian suitor, which has now not posted a profit during its 12-yr existence and misplaced $eight.6 million in the course of the primary half of 2014-15. It has no longer said how it'd pay for the acquisition, but Quickflix had simply $900,000 within the financial institution at the quit of June.

Quickflix was released in 2003 as a DVD-mail out enterprise and have become Australia’s first on-line streaming commercial enterprise in 2011.

however the business enterprise has persisted to burn via coins and has had to faucet its shareholders for additional finances a couple of instances, contributing to a dramatic slide in its share price, which has slipped from about 13 cents to $0.002 cents in only over three years. A recent try to raise money from its shareholders fell well short of its plans, bringing in only $650,000 of its $5.7 million target.

The launch of opponents Netflix, Stan and Presto has seen its clients numbers decline swiftly inside the past six months.

overall paying clients fell 12 according to cent to 108,000 at some point of the June region, while revenue dropped 15 consistent with cent to $four.2 million. The chinese business enterprise produces authentic film and tv, which Quickflix says could match properly with its streaming platform.

“Combining the Quickflix platform, with unique content and having access to large international audiences represents a sizeable possibility to free up the cost of Quickflix,” the company stated in a announcement.

The proposed takeover is challenge to due diligence and regulatory approvals and Quickflix stated it might provide a marketplace update with the aid of August 20.