Quickflix seeks new funding to grow Australasian presence
BUSINESSDESK: ASX-listed streaming and on-demand video supplier Quickflix has engaged advisers to help attract new investment to grow its presence on both sides of the Tasman.
The Sydney-based company is looking at ways to accelerate subscriber growth through wider marketing channels and broader access to content from more working capital, it says in a statement to the Australian stock exchange.
Quickflix has started a formal process with local and international investors with a view to attracting new investment or entering into a strategic partnership or merger to grow its Australasian presence.
"We have invested heavily in building the platforms for future growth of our video on demand platform, which includes both streaming and pay per view services," executive chairman Stephen Langsford says.
"Additional investment in marketing and content will enable the business to rapidly expand."
Quickflix, which counts US pay-TV company Home Box Office as a cornerstone investor, launched its service into New Zealand this year.
The company has been critical of local content arrangements between pay-TV operator Sky Network Television and internet service providers, which prevent it from offering HBO.
The company has grown paying subscribers 59% to more than 110,000, with annualised revenue run rates of $20 million in the 2012 financial year, and is banking on significant growth from about six million Australian homes without pay-TV services.
"Quickflix believes its business model of combining subscription online DVD rental by mail and on-demand streaming accessible over a wide range of connected devices including smart TVs, games consoles and mobile platforms is the right model for the market," Mr Langsford says.
New Zealand and Australia are expecting a boom in content delivered over the internet after both governments embarked on taxpayer-subsidies major fibre network projects to stoke broadband uptake and improve the level of online services available.
Quickflix shares rose 30% to 5.6 Australian cents on the ASX yesterday.