Singtel-owned video streaming service HOOQ Digital said today (27 March) that it is filing for liquidation.
HOOQ was a joint venture created by Singtel, Sony Pictures Television and Warner Bros Entertainment in 2015, and Singtel till today holds an indirect 76.5 per cent effective stake.
It also entered a partnership with Grab in 2019 to provide on-demand video streaming on the Grab app, then boasting 10,000 hours of content for Grab users to enjoy.
HOOQ said it has struggled to make sustainable returns and cover escalating costs of content and keeping its platform operational.
It cited “significant structural changes” in the over-the-top (OTT) video market making it harder to survive in this highly competitive landscape.
For one thing, global and local content providers have been increasingly going directly to viewers, giving viewers a growing variety of choices.
The cost of content has also remained high, while in contrast, consumers’ willingness to pay has “increased only gradually”, said HOOQ.
HOOQ will hold a shareholder meeting and a creditor meeting on April 13.
Its liquidation is not expected to have any material impact on Singtel’s net tangible assets or earnings per share, the telco said in its regulatory filing to the stock exchange.
Featured Image Credit: Mumbrella Asia
