Singtel-operated video streaming service HOOQ Digital announced today (March 27) that it is applying for liquidation.
HOOQ was a joint venture founded in 2015 by Singtel, Sony Pictures Television and Warner Bros Entertainment. To date, Singtel holds an indirect effective share of 76.5 percent.
In addition, the company partnered with Grab in 2019 to provide on-demand video streaming through the Grab app and provide 10,000 hours of content to Grab users.
HOOQ said it had struggled to generate sustainable returns, meet rising content costs, and keep the platform operational.
“Significant structural changes” have been noted in the over-the-top video market (OTT) that make it more difficult to survive in this highly competitive landscape.
For one thing, global and local content providers are increasingly turning directly to viewers, which offers viewers a growing choice.
The cost of content has also remained high, while consumer willingness to pay has "only gradually increased," says HOOQ.
HOOQ will hold a general meeting and a meeting of creditors on April 13.
The liquidation is not expected to have a material impact on Singtel's net assets or earnings per share, the telecommunications company said in its regulatory filing with the stock exchange.
Selected image source: Mumbrella Asia