SINGAPORE: HOOQ Digital, a video streaming service majority owned by Singapore Telecommunications (Singtel), said on Friday (Mar 27) it is filing for liquidation as it has not been able to grow sufficiently to provide sustainable returns or cover escalating costs.
HOOQ was started as a joint venture in 2015 between Singtel, Sony Pictures Television and Warner Bros Entertainment, but it has failed to make major gains as larger rivals such as Netflix expanded in the region.
"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 amidst an increasing array of choices," said HOOQ.
"Because of these changes, a viable business model for an independent, over-the-top distribution platform has become increasingly challenged," it added.
The liquidation is not expected to have any material impact on the net tangible assets or earnings per share of Singtel, the telecom operator said in a filing to the stock exchange. Singtel has an indirect 76.5 per cent effective stake in HOOQ.
HOOQ is part of Singtel's group digital life segment, which includes newer businesses such as digital marketing that the company has been trying to grow as part of its efforts to expand outside traditional telecom services.