Quickflix, one of several SVOD competitors digging in to battle Netflix when it launches down under in March, closed Q3 with AUS$2.7 million in the bank and is looking in the next several weeks to raise more than AUS$6 million to help keep the invader’s beachhead to a minimum.
Quickflix said it would use the cash to “support the company’s strategic objectives,” and, to bulk up content and marketing efforts aimed at growing its customer base.
It could be in for a bit of a rough haul.
Third quarter numbers announced in October were anything but stellar.
While the streamer occupies a bit of a catbird seat in the market, thanks to its first-mover advantage and an attractive array of content, including Netflix’s own Orange is the New Black, HBO’s Game or Thrones and True Blood, among others, it’s paid mightily for that content, identifying it as its biggest expense.
It’s currently working with content providers in hopes of trimming some costs and to “align payment profiles for existing and future commitments to better match expected customer uptake and revenue growth.”
But that growth also is problematic, with plenty of competition locally and Netflix moving in.
It has about 120,000 streaming only customers paying AUS$10 a month each, but that may be more than 80,000 fewer than the number that already are acquiring Netflix by using VPNs… and paying US$10 a month.
In Q3, Quickflix reported that it added streaming-only subs but lost 3.8% of its overall customer list. The company, like Netflix before it, operates a DVD by mail business that, if you buy it with streaming, costs $AUS13 a month.
Quickflix has deployed to an impressive number of game consoles, smartphones, tablets and other devices, and says its registered on about 500,000 of them.
The company, meanwhile, is looking for “strategic partnering opportunities” in the market, especially as OTT, SVOD and online video gain traction and (cue the Jaws music) companies like Netflix move onshore.0