On-demand video streaming service Hooq said on Friday it has filed for liquidation after it failed to grow rapidly and cover its increasing operating costs.
Hooq Digital, a joint venture between Singapore telecom group Singtel (majority owner), Sony Pictures, and Warner Bros Entertainment, said the company sailed through “significant structural changes” in the on-demand video streaming market for five years but is now struggling to provide sustainable returns to investors.
“Global and local content providers are increasingly going direct, the cost of content remains high, and emerging-market consumers’ willingness to pay has increased only gradually amid an increasing array of choices,” a Hooq spokesperson said in a statement.
The Singapore-headquartered firm will hold a meeting with its shareholders and creditors on April 13. In an exchange filing, Singtel said Hooq’s liquidation won’t have any material impact on its business.
HOOQ has amassed 80 million users in India, Indonesia, Thailand, Singapore, and the Philippines. The company counted India, where it entered into a partnership with Disney’s Hotstar in 2018, as its biggest market. The company also maintains a partnership with ride-hailing giant Grab to supply content in its cab.
More to follow…