Quickflix users drop 5% as it releases unlimited streaming
Quickflix paying customers dropped 5% to 113,036 in the March quarter, while revenue also fell $600,000 to $5 million, a substantial difference compared to the previous quarter.
Total customers fell 6% to 121,657
Paying subscriber churn rose 6.7% up from 5.5%.
The content provider said it cut operating and investing expenditure by almost 20% to $6.2 million, following a restructuring and streamlining of the business, which recently ran into major financial difficulties.
It now says it is “making significant progress towards its goal of cash flow break even.”
“Subscriber growth has temporarily reversed ahead of new channels building and replenishing the customer acquisition pipeline.” QF said in a statement.
The Internet content provider is announcing further content deals and partnerships over the coming quarter, recently announcing a Quickflix app for the Windows 8 platform and a deal with HBO to get access to hit US TV series like ‘Game of Thrones’ within hours of screening in the US.
It is already on a slew of devices – from iPhone, Androids, Xbox and Smart TVs.
“New partner promotions including those with device partners and direct marketing campaigns will underpin the company’s growth but it will take more than a quarter for growth momentum to build,” the company admitted.
With the cost reduction underway the company is shifting its focus to cost-effective customer and revenue growth.
The company completely reorganised and scaling back its marketing activity and refocusing on cost effective customer acquisition channels which are performance-based.
QF received $2.5 million in new funding from debt and equity raisings during the quarter, resulting in a balance of $3 million at the end of March.
QF won’t draw further on the BluePrint Partners loan facility under nominee Gleneagles Securities.