Local Netflix competitor, Quickflix, has gone into a trading halt on the ASX as the streaming media and DVD group tries to find a way to revive its business.
It’s looking for new funding, more revenue generating opportunities and a way out of its heavy minimum guarantee payment obligations from content licensing deals it did several years ago.
The company is in talks with the content owners to try to restructure those minimum payments so that it can continue to distribute TV shows and movies.
Quickflix, which has been losing 5000 subscribers a month since the launch of Netflix in March, is also looking at platform licensing for larger international markets such as Asia.
“Quickflix can be a viable player in the high-growth streaming sector if through this restructure it can address the legacy issues holding it back,” the company said in a note to the market.
The restructure is expected to take one month and will include a cost saving program.
The company is due to announce its annual results this week. Its losses more than doubled to $8.592 million for the half year to the end of December.
Two deals Quickflix had been negotiating have recently fallen through.
One was with Foxtel’s Presto, which would have seen Quickflix get rid of its content licensing overheads.
And the second was an acquisition of a media player in China. This would have given Quickflix an entry into the creation and distribution of Chinese language content.
Earlier this month locally-owned video streaming business EzyFlix shut, the first victim of Netflix’s launch in Australia.
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