Quickflix aims for conversion

17/01/2014 - 09:30

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Online streaming and DVD delivery company Quickflix is banking on its growing number of trial customers buying subscriptions to keep growth on track.

Quickflix chief executive Stephen Langsford.

Online streaming and DVD delivery company Quickflix is banking on its growing number of trial customers buying subscriptions to keep growth on track.

The company, founded by Stephen Langsford, announced a 10 per cent increase in total active customers for the December quarter.

That included a 66 per cent increase in customers who signed up on a trial basis.

The number of paying customers increased by only 4 per cent, however, and revenue from customer receipts dipped 5 per cent.

The company said the decrease in customer receipts was due to the timing of a turnaround in the paying customer base, a “slight easing” in the amount each customer was spending, and timing differences around cash receipts and quarter ends.

It assured shareholders the current quarter was shaping up to be better, with revenue already tracking higher.

The significant increase in trial members is the result of a marketing drive, which the company hopes will ultimately translate into increased subscriptions.

A $5.5 million capital raising in the September quarter helped pay for increased marketing.

The company’s significant investment in online streaming capability in recent years appears to be producing results, with streaming activity 40 per cent higher in the December quarter compared to the same period a year earlier.

Quickflix also launched streaming capability with Playstation 4, LG Smart TVs, TiVo and the Amazon Kindle Fire, while Xbox capability is expected to be finalised this quarter.

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