Quickflix Restructuring Studio Deals, Moving To SVOD Reseller Model
Quickflix has reached in-principle agreement with studios with which it has SVOD licensing arrangements to restructure existing commitments of in excess of $5 million into debt, to be repaid over three years.
The agreement additionally includes granting studios the option to convert debt to equity at a future point in time, with the restructuring part of a process Quickflix is undertaking with all its licensors as it moves to the SVOD reseller model.
Quickflix stated that under the reseller model its “cost base becomes mostly variable, including content costs which will no longer be subject to minimum guarantees that have historically impeded profitability”.
“The restructure of licensing commitments and adoption of the SVOD reseller model will significantly improve the company’s future operating margins and cash flow,” Quickflix stated.
“As an integrated reseller of SVOD, Quickflix can effectively compete with larger SVOD competitors, leveraging its significant investment in its streaming distribution platform which includes connected TVs, game consoles and other devices, and its customer base.”
Quickflix and Foxtel recently entered an agreement under which Foxtel’s Presto movie and TV SVOD service will be distributed by Quickflix to its customer base.
“The restructuring of the company’s SVOD commitments is a major step towards repositioning Quickflix,” Quickflix CEO Stephen Langsford commented.
“Studios have been very supportive and are keen to see Quickflix continue to develop and become a strong and growing provider in the high-growth streaming entertainment sector.”