Quickflix posts AU$850,000 in losses for Q1 2015

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Quickflix has thanked the buzz around the launch of rival video streaming services like Netflix for increased demand and growth in subscriber numbers for the first quarter of 2015.

But while its users might be streaming more hours of content, the company reported a cash loss of more than AU$850,000 for the quarter, with just AU$1.26 million on the books as at 31 March 2015, compared to AU$2.12 million at the end of the 2014 calendar year.

Quickflix now has more than 123,000 paying customers (not including those users on a free trial), which marks an increase of 6 percent on the previous quarter. Each of those customers is now worth AU$12.25 per month to the company in terms of cash receipts, down 7 percent on the previous quarter.

However, with 70 percent of the total Quickflix customer base using the service to stream content (as opposed to those that only use the Quickflix DVD delivery service), the company’s own numbers indicate that Quickflix didn’t crack the 100,000-customer mark for its streaming service.

By comparison, industry estimates put the number of subscribers for Netflix in the same period at roughly 200,000 before the service had even launched in Australia.

But despite the number of new providers that have entered the space, including Netflix, Quickflix reiterated its previous praise of competition and welcomed the arrival of rivals in the Australian streaming space.

“In a quarter in which streaming competitors Netflix and Stan launched their services in Australia, combining with increased promotion from Presto, Quickflix recorded a 6 percent increase in paying customers,” the company said in its results release.

“The combined promotional efforts of all competitors in the market and heightened media interest, is contributing to increased consumer awareness and demand.”

In addition, while streaming is the buzzword in the Australian entertainment industry, Quickflix was talking up its strength in the legacy DVD rental business.

“Quickflix has a broader service offering than its competitors,” the statement read.

“As the only streaming service to offer online DVD rental subscription in Australia, it not only can tap into the $1 billion per annum DVD market, but service the over 2 million regional and rural households estimated without access to broadband sufficient for streaming.”

Quickflix has been contacted for comment.