Australia’s Quickflix cancels China acquisition

Australian streaming service Quickflix has pulled out of its deal to acquire a Shanghai-based film and TV company, which it first announced earlier this month.

Facing a growing tide of competition at home, the streaming platform was planning to reinvent itself as an online distributor of content into China and other international markets.

“Based on due diligence of the Shanghai-based company and advice received in relation to Chinese regulations and restrictions, Quickflix has decided that it will not be proceeding with an acquisition,” the company said in a statement to the Australian Stock Exchange.

The statement continued: “Quickflix recognises distribution of content into China and of Chinese content to the rest of the world is a significant opportunity and it is continuing to develop a China strategy.

“Quickflix is also pursuing opportunities for licensing and operating its studio-accredited streaming platform as a branded or white-label service in other international markets.”

In addition to Netflix, which entered the market in March, streaming services in Australia include Foxtel’s Presto and Stan, jointly owned by Fairfax Media and Nine Entertainment. Another service Ezyflix, owned by Access Digital Entertainment, ceased operations on August 18.

Quickflix made losses of nearly US$800,000 and saw subscriber numbers decline by 13% in the second quarter of 2015. It also recently cancelled plans to become a reseller of Presto, announcing that its conditions to proceed with the deal had not been met.