Streaming company Quickflix has announced to the ASX this morning it will not go ahead with the planned acquisition of an unnamed Chinese streaming company.

The ASX statement said the decision was based on advice Quickflix had received.

“Based on due diligence of the Shanghai-based company and advice in relation to Chinese regulations and restrictions, Quickflix has decided that it will not be proceeding with the acquisition,” the statement read.

However, the streaming company says it still wants to pursue a Chinese-based deal as it “recognises distribution of content into China and of Chinese content to the rest of the world is a significant opportunity and it is continuing to develop a China strategy”.

The proposed acquisition came to light a fortnight ago, after Quickflix terminated the deal it had made with Foxtel’s streaming venture Presto.

The deal had meant Quickflix would become a reseller of Presto content.

However, that fell through a day after the announcement Quickflix had halted its trading pending an acquisition with an international company.,

It’s been a tough crowd in the streaming video on demand (SVOD) market since Netflix entered the foray.

Recent statistics from Roy Morgan Research show Netflix is continuing to be the swelling giant in the SVOD arena, with the business now reaching 1.89 million people aged 14 years and older.