Nine Nabs Quickflix Stake: Report

Written by Oonagh Reidy     21/07/2014 | 12:21 | Category: CONTENT & DOWNLOADS

Nine nabs Quickflix stake, reports suggests

Nine Nabs Quickflix Stake: ReportNine Entertainment Co. has purchased TV studio HBOs' preference shares in streaming company Quickflix, AFR reports.

Nine is believed to have paid $1 million for redeemable preference shares held by HBO, who invested $10 million in Quickflix in 2012, saving it from going kaput after a funding crisis. 

Australian-owned Quickflix has a licensing deal with Home Box Office (HBO) to show content like Entourage, Game of Thrones and Boardwalk Empire, which could prove advantageous to Nine, who are said to be launching a streaming service via Hybrid broadcast broadband technology (HBBtv). 

Quickflix currently has around 120,000 customers. 

The move by Nine could be seen as defensive giving it a foot into the on-demand TV market in light of the rumored entry of US giant Netflix, next year.

Quickflix denied any knowledge of the shares deal saying said it "has sought information from Nine in relation to this matter and will advise ASX of any material developments." 

The company were not available for comment today and Nine Co. were also not returning calls.  

Quickflix has spent the last 18 months spreading its content app to multiple devices but strategic tie-up's will drive growth and make the streaming company profitable, CEO Stephen Langford told CN.

Last month, the Perth-based content company secures $18 million in funding from private investors, and hired ex 20th Century Fox Pay TV boss David P Smith, to license content on its behalf. 

QFX shares rose 30% today to $0.013.