Netflix, Inc. (NASDAQ:NFLX) is considering acquiring a portion of the local television and movie streaming business Quickflix that could be a harbinger of the United States’ streaming company in the Australian market. According to the Australian, Netflix and Quickflix were involved in “serious” discussions over a stake in the Perth-based company.
Netflix preparing for Australia
The intention of Netflix behind Quickflix might be the local content and platform deals that could be used by the company as a platform in the local market. According to the sources, Netflix is keen to acquire some stake in Quickflix to level up to the Nine Entertainment and other local media players, such as Seven and New Corporation, which are also in discussion with Quickflix.
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The online streaming giant is entering the Australian market for sure now, and the company with a subscriber base of 48 million in more than 40 countries including Australia is undergoing discussion for screening content in the local market.
It is believed that Netflix executives held a meeting with the Australian executives, last week, in Sydney to cut a deal for the Australian and New Zealand markets to TV and movie content. Both Quickflix and Netflix declined to comment.
Rivals also gearing up
Quickflix is a small fry in the online media game, with a market capitalization of around $13.8 million, but ever since Nine Entertainment decided to acquire 8% stake in the business, other media players in the sector have, also, started taking interest.
Nine Entertainments acquired 8% stake in Quickflix after it paid $1 million to acquire all of Time Warner subsidiary Home Box Office’s redeemable preference shares.
“Streaming video is a growth area in which NEC sees potential,” Nine Entertainment chief operating officer Simon Kelly told The Australian. Kelly added that Quickflix preference shares are a lucrative financial investment due to their equity and debt characteristics. Kelly kept himself away from commenting if Nine was targeting towards an all-out acquisition of Quickflix, saying that media company was still working towards rolling over its own streaming device in the current financial year under the project name Stream Co.