By Evan DeSimone
Australian streaming platform Quickflix announced today that it has dropped its campaign to acquire an unnamed Chinese television and film studio based in Shanghai, citing Chinese regulatory requirements as a major factor in the decision.
Initially launched in 2003 as an online DVD rental service, Quickflix quickly conquered its nearest competitors, acquiring rival HomeScreen in 2005 and absorbing the DVD library of Big Pond Movies in 2011 after that company decided to drop its DVD-by-mail service. Shortlty thereafter, in 2012, Quickflix launched its SVOD service in Australia and New Zealand.
Quickflix is one of a rapidly dwindling number of local Australian streaming platforms. Faced with falling subscriber rates and increased competition, competitor EzyFlix announced its closure last week. Quickflix has also been struggling to retain users since Netflix made its debut in the country earlier this year. The streamer has lost 12% of its subscriber base since June according to quarterly earnings reports.
Back in May, Quickflix entered into a deal to resell content from Foxtel’s rival streaming service Presto. That deal was scuttled in early August, reportedly due to technology issues. At that time, Quickflix announced that it had entered discussions to acquire the unnamed Chinese studio and expand into China. With that deal now aborted, the company’s future remains in question.