LG, Panasonic and Sony are set to go head to head shortly, when they all launch next generation IP enabled TV’s capable of delivering a new Quickflix streaming service which will compete head on with Foxtel and Telstra TV.
Described as being identical to the US Netflix service, the new Quickflix offering will deliver thousands of movies direct to TV’s made by Sony, Panasonic and LG, to a Blu ray player or a PC.
TV vendors will take the Quickflix feed into their TVs via a thin client application with the TV Companies delivering software that adjusts the subscription feed to deliver a “superior movie” experience said one senior TV Company executive.
Earlier this month Quickflix who already has over 82,000 subscribers to their DVD service acquired the Telstra BigPond DVD home delivery service.
In an exclusive interview with SmartHouse, Stephen Langsford Founder & Executive Chairman said that it was exciting times ahead for Quickflix.
He admitted that he is now in direct competition with Telstra TV, Foxtel as well as Fetch TV and that the integration of the Quickflix service into TVs “will grow their business”.
He likened their new service to the US Netflix service which delivers movies as a DVD via the post or streamed into a TV.
Langsford said that his company’s aim is to attract a million customers in the next five years, and said the company is “looking forward to a very positive year ahead.”
Earlier this week Quickflix officially announced their relationship with Sony, deals with LG and Panasonic are set to be announced shortly.
The new Quickflix Blockbuster movie service and the recent acquisition of the Telstra DVD business is all about numbers Langsford admits.
Currently several IPTV players including Foxtel who this week acquired Austar for $2.5 Billion are scrambling to reel in subscribers in an effort to convince Hollywood movie houses that they have the numbers to secure first run movies at the same time that they are delivered to Blockbuster in Australia.
“We’ve had 80% growth this past year and we believe that our new service with TV manufacturers will deliver us additional growth” said Langsford.
“We aim to build our subscribers through a combination of DVD movies delivered via the post and via our TV subscription service” he added.
When asked whether he saw Quickflix as being similar to the US Netflix operation Lansford said “yes, we are very similar”.
“Our delivery technology is globally proven. We can stream movies over the Internet as long as a user has broadband speeds in excess of 1.5Mbs. We are confident that we have the content to compete and that we can deliver a good movie experience” said Langsford.
The first Quickflix online movie rental service delivered to a TV will be part of Sony’s Qriocity streaming service. (Pricing has not been announced).
Last week Quickflix has reported a 53 per cent increase in FY11 revenue to $11.8 million.
The company said its customer base grew 80 per cent year on year to 70,250, with total subscribers including trial customers exceeding 82,000.
For the fourth quarter, revenue grew 54% to $3.43 million, but average monthly revenue per paying customer dipped 3% to $16.25.
Monthly average churn fell 2% year-on-year, and 13% from the previous quarter, to 6.6%.
Earlier this week appointed former Telstra executive Chris Taylor as its new CEO.
QFX shares climbed 9.52% in Thursday’s trading to $0.115
