The ‘emerging market Netflix’ limps towards an anti-climactic IPO

The plan was seductive. Southeast Asia's most successful entrepreneur starts a company that is the answer to Netflix in emerging markets, where he founded and took five tech companies public.

 

Five years later, Iflix, too, is on its way to an IPO. However, it reaches there a veritable flop, rather than the blockbuster Patrick Grove envisioned. And certainly nowhere close to its manifesto.

 

"We will lead the Internet entertainment revolution in emerging markets, redefining television for over 1 billion people," the Iflix manifesto declares.

 

Today, Iflix shares 10% of the market with Viu and HOOQ. Netflix is nearing 15%, and YouTube is at about 50%.

 

Iflix will lead the revolution, the manifesto screams, by "BOTHERING TO SHOW UP (where the 'Seasoned Players' didn't)."

 

Not only did those seasoned players show up (Netflix went global roughly a year after Iflix started), but more are knocking at the door. India's Disney-backed Hotstar, China heavyweights Tencent and Baidu, as well as local giants GoJek and Grab.

 

The manifesto's battle cry? Revolution "By being incredibly scrappy. Pioneering through unchartered territories, making our mark in countries all over the world. #WHATEVERITTAKES"

 

Iflix sold its Africa business last December, was last month reported to have exited the Middle East, and plans to shut its engineering hub in Prague next month.

 

"We're not serious people, but we do mean business."

 

Iflix burns through $7 million per month, giving it a short runway. Last year, investors shied away due to concerns around financials and future sustainability. That left Iflix desperate enough to consider an initial coin offering (ICO).

 

A company that shopped itself with a $1 billion price tag in its heyday was valued at $300-$350 million in its latest funding round, where producers got equity for content licence deals.

 

What started as a Netflix-like service offering monthly subscriptions for a mix of Hollywood and local content, is today an ad-supported service focused on local programming.