Oi puts an end to entertainment: Surprising announcement of cuts to streaming network

From 31st of December 2023, Oi Play, the streaming service of the Brazilian telecommunications company Oi, will cease its operations.

This outcome is intrinsically linked to the judicial recovery process initiated by Oi in 2016. The company was facing a delicate financial situation and several debts.

Streaming will be discontinued this year – Image: Oi Play/Reproduction.

Judicial recovery phase

The recovery judicial is a legal mechanism that allows companies in financial difficulties to reorganize their finances and avoid bankruptcy.

In the case of Oi, this process involved intense negotiations with creditors, shareholders and regulatory authorities, seeking a restructuring that would enable the company’s operations to continue.

Asset cuts and sales were strategies adopted as part of this process, aiming to reduce expenses, settle debts and, mainly, reorient the company’s focus.

The end of OI Play

In this context, the closure of Oi Play appears as a measure to direct resources to areas considered priorities, in particular, the expansion of fiber optic internet infrastructure.

High prices, many losses

In 2019, Oi accumulated losses which exceeded the R$5 billion mark, highlighting the urgency of measures to reverse the unfavorable financial situation.

The decision to close Oi Play was a response to one of the challenges faced by the platform: high subscription prices.

Non-Oi members, interested exclusively in the streaming service, were forced to pay almost R$100 per month, making it less accessible and competitive compared to other competitors.

It is important to emphasize that the end of Oi Play will not affect the company’s other operations, as stated by the company itself.

The decision to end new subscriptions aims to consolidate the resources available for restructuring and sustainable growth in strategic areas.

Current Oi Play customers will be notified of the end of the service by the end of December, thus ending the journey of those who enjoyed this digital content.

As streaming comes to an end, Oi now faces the challenge of concentrating efforts to implement strategies capable of sustainable recovery and consolidation of its position in the telecommunications market.