While the Nine Entertainment is prepping to launch its own subscription-based video-on-demand platform, it has bought up all of HBO's shares in Aussie VOD service Quickflix.
Announced to the ASX, it was revealed that Nine Entertainment reached an agreement with HBO to acquire all of its 91.16 million redeemable convertible preference shares it holds in Quickflix, working out to be about a 8% stake in the company.
Video in Competition?
While it has been suggested that Nine Entertainment might be looking at a Quickflix takeover, the company has only said that the investment in Quickflix is opportunistic and offers an "attractive risk-reward profile".
However, the purchase of the shares by Nine Entertainment comes at a very volatile time in the VOD streaming space in Australia, as despite Nine Entertainment's new minority shareholding of Quickflix, it has been working on StreamCo Media, a subscription-based video-on-demand service not unlike Quickflix.
Set to launch later this year, StreamCo Media will be going up against Quickflix and Foxtel Presto, as well as a local Netflix, which is currently negotiating distribution and content rights for an Aussie launch.
The other two free-to-air broadcasters, Seven and Ten Networks, as well as cinemas Hoyts and Dendy, are also rumoured to be working on their own VOD services for Aussies.