Quickflix to Stream on Xbox 36013 Nov, 2012 By: Erik Gruenwedel
Aussie-based SVOD service halts trading of its stock amid fears it has reportedly misstated subscriber numbers
Quickflix, Australia’s by-mail disc and subscription video-on-demand rental service, Nov. 13 announced it has inked a license deal with Microsoft. Under the deal, Quickflix’s SVOD service will be available to about 1 million Xbox 360 Live Gold members in the country and New Zealand.
Sydney-based Quickflix reported more than 129,000 subscribers as of Sept. 30, including more than 119,000 paying subs, which is up nearly 49% from the same period a year ago. Revenue increased 43% year-over-year to $5.3 million. About 30% of subs are streaming.
“[We] delivered stronger growth in the September quarter as it resumed a focus on subscriber acquisition following successful rollout of digital streaming over previous quarters,” the company said in a statement.
The service also inked technology deals with connected device manufacturers, in addition to streaming-content agreements with The Walt Disney Co., Starz Entertainment and independent studios, as well as the launch of kids’ content.
Quickflix recently signed a content license agreement with HBO and is transitioning from an emphasis on capital and technology development over the past 9 months, to operating its “post & play” online DVD rental and streaming services, in addition to growing subscribers.
The company ended the quarter with about $2.2 million in cash. Yet, cash reserves have dipped fuirther as Quickflix reportedly is seeking additional partners to expand service in New Zealand as well as up content license agreements between the two Commonwealth countries.
The move is also partly strategic as SVOD pioneer Netflix expands service in Scandinavia and the United Kingdom and Ireland. With established SVOD and disc rental service in Australia and New Zealand, publicly-held Quickflix positions itself as ideal acquisitions target should Netflix and/or Amazon’s LoveFilm Instant services seek to expand operations in the Commonwealth.