A rights issue by Australian media streaming Quickflix to raise $5.7 million to fund investment in content and marketing, ahead of the Netflix move to Australia in March, has failed its target.
Quickflix says its renounceable rights offer closed with only $650,814.73 raised. A total of 216,938,243 new shares to be issued at $0.003 per share, or around the current share price.
The company will now seek to place the shortfall to any party.
The US streaming giant Netflix has finally announced it will launch in Australia in March.
Quickflix believes competition will be good for the market generally, encouraging more people to use media streaming services.
Local Australian players are also entering the market.
Nine Entertainment and Fairfax Media have launched a $100 million joint venture, Stan, which is expected to come online early next year.
Quickflix, which has about 120,000 paying customers, says it has access to the largest potential streaming audience in the market because its service is available on the widest range of popular devices.
It combines subscription and transactional models, where subscribers access a entertainment for one price a month but can also pay more to see new releases or premium pay-per-view TV series.
Quickflix says its working to reduce the cost of content, its biggest expenditure, and is pursuing strategic partnering opportunities.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.