The troubled streaming media and DVD library company Quickflix is combining its business with a Chinese film and TV group.
Quickflix, which has been losing 5000 subscribers a month since Netflix launched in Australia in March, says it has entered into a non-binding memorandum of understanding with the unnamed Shanghai-based company.
They will form a global streaming platform for distribution of Chinese film and TV content into China and international markets.
Quickflix will acquire the production company for a consideration to be negotiated upon completion of further due diligence.
The undisclosed target company is profitable and generates free cash-flow, Quickflix says.
Quickflix in May announced it was becoming a reseller of Foxtel’s Presto but this week that deal collapsed.
The agreement was fundamental to the streaming media and DVD library group’s move to restructure and cut its content licensing costs to get closer to elusive profitability.