Quickflix
Online DVD rental distributor Quickflix will be launching a digital download service in the next 12 months as it moves to aggressively grow its customer base from 25,000 paying subscribers to 50,000.
Quickflix founder and executive director Stephen Langsford confirmed that the company’s long anticipated plans to move their physical DVD distribution to an IPTV –style download model was still at the forefront of their growth strategy pending the resolution of the current market barriers he describes as the three c’s- connectivity, content and consumers.
At the Quickflix AGM last week, the company weighed in on the current legal stoush between the film industry and ISP iiNet over illegal downloads.
"We think most online consumers see download piracy as not worth the risk or the hassle. Consumers
want a hassle free and quality viewing experience on their flatscreen TV in their lounge room,” said MD Simon Hodge.
He added that the Quickflix service was the legitimate legal alternative to download piracy which will become increasingly appealing for mainstream consumers seeking better choice and convenience than the traditional video store. Quickflix believe that while the market waits for a robust communications infrastructure to be deployed consumers appetite for a legal, high quality digital movie distribution service akin to an iTunes will escalate.
Langsford said that Quickflix which was now stocking Blue Raywas ideally positioned for the transition to digital download services, yet
a number of factors need to align “before digital download becomes an attractive and economically viable service for mainstream Australian consumers.”
These include the widespread access to high speed broadband at reduced cost and uncapped connection of the internet to the lounge room through accessible devices; increased range of content from studios for the download release window and the recruitment of a significant entertainment buying online customer base.
“We expect the transition to download will be gradual and supplement existing consumption as the three C factors are progressed and consumers accept the new delivery format,” he said.
Leveraging from its online DVD rental model, Quickflix is building a membership base of Australian households who are actively buying entertainment online ahead of offering download services. It currently has 200,000 consumers in its online network community. The company will be bolstering its services to it online community in the year ahead including working with Slice Wireless to deploy a mobile film ordering and distribution platform. It is also developing a strong partnership network to accelerate growth wth mainstream brands such as BigW/Woolworths, NAB, iiNet and niche industry partners such as Moonlight Cinema.
While the company’s share price continues to take a pummeling on the ASX and the 19.9% stake formerly owned by Destra is now in the hands of receivers, Langsford believes that macro-economic factors favour counter cyclical growth in online DVD rental. “Online services have significant growth potential and are still early in the migration of consumers online. While access to faster broadband promotes increased online ecommerce, stay-at-home services should prosper in an economic downturn as consumers spend more time at home to save money.”