Quickflix claims paid user growth but admits it is losing $850,000 a quarter
Streaming service Quickflix has reported an 11 per cent drop in its number of trial subscribers, but claims its paying customers have risen 6 per cent in the last quarter during which awareness of SVOD services rose dramatically.
Between January and March, when new services Stan and Netflix launched and Presto overhauled its offering, Quickflix claims its subscribers lifted by 6,400 to 123,553 compared to the last quarter of 2014, it told the Australian Securities Exchange this afternoon.
However the number of customers on free trials had dropped from 19,564 to 17,348 between December and March. The accounts also showed the company is losing around $850,000 a quarter, with just $1.26m in cash on hand.
Quickflix subscriber numbers
In its statement the company said it is in discussions to “continue to progress with certain industry parties and investors in relation to growth opportunities with Quickflix.”
Year on year paid subscribers were up 4 per cent to 123,553, following a decline last quarter, although its churn rate of paying customers was 35 per cent year on year and 41 per cent quarter on quarter.
The online streaming service, run by Stephen Langsford, has previously signalled it would look for more capital raising from investors as the former DVD rental company seeks to develop a sustainable business model to take on its rivals.
The company’s attempt to bring in $5.7m in a capital raising and fund an extensive below the line marketing effort to ward off intensifying competition brought in just $650,000 from investors earlier this year.
Shares in the company today rose 33 per cent to $0.002 off the back of Friday’s record low price of $0.001, which gave Quickflix a market capitalisation of just $1.85m.
Last year StreamCo, the parent company of rival Stan, took a $1m stake in Quickflix with redemption rights should the company face a “liquidation event”. Since then Quickflix’s share price has continued to slide.
Nic Christensen
good grief…..just do the right thing, shut the doors and move on….
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It will be pretty impressive if Quickflix is still around in 6 months time.
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Need someone to buy them out as they have all the infrastructure set up.
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They haven’t got much to negotiate with. The people they are talking to just have to wait and see them get more desperate, the price dropping each month.
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I’ve just started a free trial and so far it’s been a terrible customer experience. The wrong URL to redeem was on the gift card prompting me to call (twice – as the first time they gave me the wrong URL), and now I’ve been waiting almost 2 weeks for the discs to arrive but still no sign of them. All the good shows are only on DVD and not available for streaming. Why would anyone invest in this kind of business?
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Hi Mumbrella team – any update on Netflix subscribers? Do they release that sort of info. Would be interested to hear. Cheers.
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Hi Frankie,
We’ll let you know when we do – they don’t seem to do market breakdowns, but when we have more info we’ll make sure it’s posted.
Cheers,
Alex – Editor, Mumbrella