The leading independent online entertainment company in Australia, QuickFlix, has recorded impressive results over 2008, due to a dramatic shift in consumer viewing habits.
Due to the recent economic climate, consumers are opting for more price friendly alternatives to entertainment. It is becoming increasingly prevalent in today’s society for consumers to stay in and shy away from expensive luxuries, and as a result movie rentals have become immensely popular.
QuickFlix has obviously benefited from this boost in popularity and has just released their results for the six month period ending 31 December.
The highlights of the report included a membership increase of 28 per cent, a revenue rise of 27 per cent to $3.2 million and a low monthly customer churn (member cancelations) of 5 per cent. Not to mention a fall in operating costs of 22 per cent to $4.3 million and net operating losses of only $1.1 million, a reduction of 62 per cent from the previous year.
“QuickFlix is gearing up its marketing as Australian consumers tighten their belts and turn to value-for-money experiences at home,” commented managing director Simon Hodge.
Hodge also attributed the success of QuickFlix on the growing frustration many consumers have with existing television providers.
“QuickFlix is well positioned to leverage consumers’ growing frustration with the programming schedules and levels of advertising on the Free to Air and Pay TV networks. QuickFlix can be enjoyed by consumers at a time that suits them without having to invest in any new expensive technology such as PVRs,” he commented.
It was also mentioned that the company are currently in negotiations with parties to introduce a video on demand and IPTV service in addition to the DVD rental model, Hodge states the purpose of this is to keep at the forefront of technology.
The only real negative to report for the company has been its less than impressive share price performance. QuickFlix attribute this to the fact that their biggest shareholder, Destra, was forced into receivership. But since then Destra’s holding was subsequently acquired by other shareholders of the company including founding shareholders.