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Quickflix "Positioning" With AAPT Deal

By Oonagh Reidy | Friday | 28/06/2013

QF Banks on "Extreme Performance" for Streaming

Internet content player Quickflix (QF) has signed a deal with one of Australia's largest telecommunications infrastructure companies, AAPT, to stream content via its Extreme Performance network.

The deal is a multi-year "cloud, CDN and network partnership", worth less than $10 million, reports the Australian Financial Review (AFR).  Computer and service infrastructure, cloud-based content and delivery and telecommunications services are among the other advantages for Quickflix. 

AAPT's Extreme Performance network will enable Quickflix to efficiently scale its movie and TV streaming to serve "millions" of users across Australia and New Zealand.

At last count, Quickflix had 121,657 customers for the March quarter - down 6 percent.

The Aussie streaming provider also says it will add more major and independent studio movie and US TV content to its menu in the near future. It recently added 'straight from the US' TV series' like Game of Thrones to rival Foxtel's offering. 

"The AAPT partnership gives a low-cost and very scaleable platform, allowing us to invest more in content. It also can augment unmetering, should we partner with ISPs on that," Quickflix CEO Stephen Langsford told Channel News. 

"Although with 200GB and plans for $50 [unmetering] it is becoming increasingly irrelevant. If a customer streams 30hrs a month of Quickflix, it still leaves plenty of capacity for everything else you need to do with your broadband."  

Langsford says the move is about cost-cutting and "positioning" the company for the next phase of growth, after the embattled content streamer ran into financial trouble, but was saved by a last-minute funding injection.

It is now focusing on a return to cost-effective growth and moving to cash-flow breakeven. Recently, it received a $1.7 million funding boost from global investor Crede Capital.  

''AAPT is providing the level of service and flexibility that an innovative company like ours needs,'' says Langsford.  

''They had a clear understanding of our growth strategies and a willingness to work with us as partners to help us achieve our growth and success.''  

AAPT's CEO David Yuile says: "Quickflix represented the new breed of high-growth digital media and entertainment players seeking rapid delivery of streaming content across AAPT's Extreme Performance national network." 
Quickflix shares remained unchanged at $0.017 on June 28.  

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