Quickflix’s slow demise: corporate euthanasia would be kinder
The streaming service is effectively dead but the corpse could twitch for six more months.
When Quickflix went into administration last month, I figured that it was all over for the Australian streaming service bar the shouting. Yet it seems that the shouting is going to continue for a very long time.
While Quickflix has already held its first meeting of creditors, administrators Deloitte confirmed in a statement to the ASX yesterday that it had been granted approval to delay the second meeting until 21 October. In other words, it could be at least six months before Quickflix employees and shareholders know what's happening. While the letter notes that the company is hoping it will take less time, it isn't obliged to hold the meeting before that date.
I appreciate that the role of the administrator is to try and extract as much value from the remnants of the company as possible. But let's not kid ourselves. The option, hopefully raised in the statement, of someone looking to buy out or recapitalise Quickflix simply isn't going to happen. We already have a dominant global streaming company in Australia in the shape of Netflix, and two competitors, Presto and Stan, with the backing of major media companies. Quickflix hasn't been able to persuade regional players to buy into it or nail a partnership with Foxtel, so why will it be any different now?
That means the only substantial assets Quickflix has are an email database and a warehouse full of DVDs without covers. I suppose someone like hayu might want to buy the mailing list, but that's not going to raise oodles of cash. And who is going to want the DVDs? It's not like this is a Dick Smith situation where Ruslan Kogan perceived some value in the online brand.
As I've said before, Australia simply isn't a big enough market for multiple streaming players. It's time for Quickflix to flick the switch to OFF.
Angus Kidman's Findings column looks at new developments and research that help you save money, make wise decisions and enjoy your life more. It appears Monday through Friday on finder.com.au.