Homegrown streaming TV service Quickflix has failed in a bid to become a reseller of Presto, the rival on-demand TV service backed by Foxtel and Seven West Media – but it could merge with a Chinese company.
On Tuesday, the company released a short statement about the failed Presto plan, saying that "the conditions precedent to the Foxtel Presto reseller agreement have not been met and that the agreement is therefore termimated."
"Quickflix is pursuing other opportunities in relation to content for its SVOD [streaming video on demand] service, including integrating alternative third-party SVOD channels into its platform."
Quickflix had been pinning its hopes on the reseller model after being hammered by the local launch of Netflix in Australia.
Its paying customers fell 13 percent between the March and June 2015 quarters, to 107,969. Quickflix's paying customers peaked at 122,862 last June. Its customer churn remains at around 10 percent.
Quickflix first revealed "its new strategic direction" in May, with plans to resell Presto among other third-party providers.
Chinese deal
Quickflix had been in a trading halt since Monday, hinting at "a potential corporate transaction with an international third party which may result in an acquisition".
The company today revealed it has signed a non-binding memorandum of understanding with a "Shanghai-based film and television company to combine their businesses".
Quickflix has been facing tough questions about its future following the sharp increase in competition in the streaming market.
Last week, Telstra announced its push into the streaming TV sector by aggregating the three leading services, Netfliex, Presto and Stan, a joint venture of Nine Entertainment Co and Fairfax Media.
Telstra TV will also see the telco bring Roku technology to Australia. Roku manufactures the Roku Streaming Stick, which competes with rival products such as Apple TV and Google Chromecast.
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