Quickflix pulls plug on Chinese acquisition

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As the competition in Australia's video on demand market heats up, claiming its first victim in the form of EzyFlix last week, it's sad to see pioneer Quickflix continue to struggle amid the new competition.

After abandoning its plans to resell Presto and instead announcing it would acquire an unnamed Chinese streaming service, today the company has announced that the deal is no longer on the table.

In a note to the ASX, Quickflix informed its shareholders that "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."

A Chinese strategy won't save them

But just because this deal has fallen through doesn't mean that Quickflix isn't super keen to take its brand of SVOD to the Chinese mainland.

"Quickflix recognises distribution of content into China and of Chinese content to the rest of the world is a significant opportunity and is continuing to develop a China strategy," the ASX announcement continues.

Of course, it's hard to see a Chinese deal – even if it does eventuate – saving the troubled company. In its most recent earnings report, Quickflix lost more than a million dollars last quarter and the company is left with less than $1 million in cash after multiple rounds of capital raising.

• This news won't help its standing in our Netflix vs Stan vs Presto vs Quickflix comparison