|The once troubled internet streaming company is on the up, as it rides the popularity of watching 'binge TV' and movies on phones and tablets. Quickflix (QFX) paying customers rose to 118,500, up 16,000 or 16 per cent in three months to March 31, the highest its ever been, it said today. |
Revenue was up almost 10% on the previous quarter, to $5.2 million. Total user base (incl. trialists) rose to 137,000, up 13%. Subscriber numbers have not been that high since March 2012.
When the movie and TV streaming service first entered the scene in 2008, there was under 300,000 subscribers.
It is the third consecutive quarter of growth for the listed company, which has enjoyed return to growth after two years, CEO Stephen Langsford told Channel News.
User numbers were almost as high in March 2012, but after a period of heavy investment,getting the service up and running and developing Quickflix's device network was a "major distraction."
He says the company has now refocused on increasing subscriber base, after a dip in 2013 and is increasing marketing spend. Despite Foxtel getting there first, he anticipates big demand for Game of Thrones season 4, which Quickflix will screen after the finale is showed on the Pay TV service.
There has been strong underlying demand for content streaming, with users signing up on Quickflix- enabled devices like iPad, Galaxy smartphones and Smart TV's. Device registrations via the Quickflix app rose 25% in the March quarter.
Over 0.3 million devices are registered streaming Quickflix in Australia and New Zealand, up 24%.
50% of all streaming is to smart TVs and game consoles with the balance heading to mobiles, tablets, laptops and others. Streaming content facilitates 'binge TV', says quickflix CEO, and many customers watch 2-3 episodes of TV series at a time. The volume of hours streamed jumped a whopping 20% in the March quarter.
New licensing deals announced in the quarter is servicing demand, the Perth-based content company said. TV series Turn Detective has also seen a massive take up, says Langsford, who is tipping it as "the next Breaking Bad."
Quickflix says it's "well positioned to drive further growth" and says the streaming market in which it has established a lead is gaining acceptance.
The company also notes the threat of over-the-top (OTT) operators pushed Foxtel to launch Presto movies on-demand.
Quickflix's says its service is far superior than Presto and is not worried about the threat from the well known Pay TV giant, but believes it could help increase awareness of OTT options and "in turn benefit Quickflix."
It also reassured investors its dominant position in online DVD & Blu-ray rental puts it in an excellent position to significantly grow its share of the $1.5 billion market, even as demand contracts.
The OTT operator is now focused on sustaining growth and entering new partnerships in ANZ, and is in early stage discussions with investors and potential strategic partners in relation to expansion.
However, the launch of Quickflix on XboxOne, originally flagged for March has been pushed back until late April and is currently in testing.