Troubled Quickflix sees further drop in customers, says it lacks marketing budget to compete with rival streaming services

Quickflix21Struggling Australian video streaming and DVD rental company Quickflix (ASX:QFX) has revealed that its number of paying customers has fallen again, while customer trials have dropped by a third in just the last three months.

The company’s quarterly update was put out on the ASX on Friday evening, a time of the week often chosen by companies wanting to slip out bad news.

Shares in Quickflix have been suspended for the last two months while the company attempts to restructure its operations to reduce costs.

According to Friday night’s update,by the end of September, the loss-making company had just $840,000 left in the bank. It said that it has applied for a $620,000 rebate from the government by claiming tax back against research and development, which it hopes will arrive in the coming weeks.

The company said that revenues fell by 8 per cent to $3.9m. But it had also cut its operating costs by 26 per cent to $4m.

The quarter was the second in a row to see a reduction in the number of paying customers which have now fallen to 100,121.

The company said it has been unable to match the marketing budgets of the likes of Netflix, Stan and Presto.

At the beginning of the week, Quickflix said it had cut 20 per cent of its staff as it sought to bring down costs and evolve to a model which mainly involves helping other streaming services market to its customers on an affiliate model.

On the outlook for the company, Quicklflx said: “Competitors are expending enormous amounts of money on marketing and content in a bid to secure market share. Quickflix will not seek to compete head-on in this environment, rather it will focus on developing a niche.”


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