So will they struggle? Not in the short term, but in the long term as major telecommunication carriers, CE vendors like Sony and Apple, and TV companies like Seven Media and Foxtel start rolling out content delivery systems up against them in the Australian market.
Also set to compete with the local movie vendor is Blockbuster, which is set to roll out a major online download site. It already has 400 stores and over a million rental customers. Other contenders are search engine players like Google, Yahoo and MSN.
Right now Quickfix has as its biggest competitor, Telstra, which while not delivering download numbers for movies, does admit that its game downloads are extremely "Healthy" and that its DVD home delivery service is booming.
Talk to Quickflix executives and they all talk about the success of Netflix in the USA "We are modelled on Netflix" said one executive. The only problem is that Netflix is starting to find the going getting tough with major analysts asking, is the Netflix business model broken or edging past its prime. Will the company survive a triple-feature of lost subscribers, stock plunges and bloody price wars with archrival Blockbuster?
