Quickflix restructures deals with major studios
Quickflix has reached in principle agreements with Hollywood studios to convert SVOD licensing commitments of more than $5 million into debt, repayable over three years.
The studios will get the option to convert debt to equity in that three years. The restructure follows Quickflix's deal announced in May to resell Presto film and TV content, subject to meeting certain conditions.
Quickflix has SVOD deals with Warner Bros, NBCUniversal, Sony Pictures and MGM.
Under the new SVOD reseller model, Quickflix’s cost base becomes mostly variable as content costs will no longer be subject to minimum guarantees.
The company says the restructure of licensing commitments with all licensors and adoption of the reseller model will significantly improve its operating margins and cash flow and enable it to compete with the larger SVOD players.
CEO Stephen Langsford tells IF, "This is a process we are undertaking with all SVOD licensors- we are well progressed with all." There is no timetable yet for the start of the Presto agreement but preparatory work is underway.
As a streaming service Quickflix also differentiates by offering transactional streaming and online DVD rental subscription.
Langsford added, “The restructuring of the company’s SVOD commitments is a major step towards repositioning Quickflix. 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.”