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Quickflix: "We've got to get ourselves to profitability"

Stephanie McDonald | Jan. 25, 2013
Quickflix has grand plans for 2013.

However, Quickflix still has grand plans for 2013. In October last year the company struck a deal with Optus Wholesale to offer its online movie and DVD rental services to the telco's wholesale service providers.

This would allow Optus resellers to provide Quickflix services to their customers on one bill.

So far, Exetel is the only Optus reseller who has confirmed it plans to offer Quickflix services, with the ISP still finalising pricing details.

"We're trying to make effectively what is the Netflix or the Amazon play ... which is a subscription service where people can stream as much as they want for a set fee and also [receive] DVDs and Blu-Ray [titles] by postal service, again where people can pay one fee," Parsons says.

He says Quickflix would also like to introduce technology that would allow users to pause a program on one device and resume play on another device. The company also wants to collect ratings data from televisions, computers and mobile devices.

The Netflix threat

At CeBit in October last year, Parsons said the company was trying to keep US competitor Netflix out of the country by signing agreements with as many companies as it could for exclusive rights to devices.

Quickflix has now signed agreements for exclusive streaming rights on more than 200 devices.

"We're always concerned and we've taken on a particular strategy to roll out to as many devices and [to] as many platforms as we could as fast as we could to try [to] get a first mover advantage," Parsons says.

"As a business we're both trying to be super progressive and leading edge and we have one eye over our shoulder [for] players that have more money and larger content stores than we do internationally. It's something that we're constantly thinking about."

While Netflix has been battling it out in the US courts over an alleged "unfair advantage" it received from the US Postal Service, Quickflix is currently in discussions with Australia Post to enable postal delivery of its DVDs up to one day sooner.

Quickflix already has a partnership with the postal service, but Parsons says opportunities have been identified which would enable DVDs to be delivered sooner.

"There's a huge amount of technology that can go into speeding up how DVDs in Sydney, for example, [that] might land in a post box in Perth or Adelaide and how you can do that even faster than regular mail. That's where a partnership with Australia Post is critical," he says.

The NBN to drive future growth

While the National Broadband Network (NBN) is not yet bringing any benefits to Quickflix's business, Parsons is hoping it will have a significant impact in the future and it will encourage people who were on patchy broadband to sign up to its service.


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