ASX-listed movie and TV streaming service Quickflix has reported losing 13 percent of its paying customers in the June quarter, which it puts down mainly to the launch of Netflix in Australia and an accompanying “unprecedented level” of free-trial promotions by other operators.
Quickflix customer numbers plunged 14 percent to 121,127 and revenue for the quarter crashed 15 percent to $4.2 million, leading to a cash outflow of $1 million and leaving Quickflix with just $900,000 at the bank.
The news comes as Quickflix shares remain in suspension on the ASX, pending what the company says are “advanced discussions” on a possible “corporate transaction” – perhaps an acquisition offer.
The company adds that Quickflix is planning an upgrade of its user interface, to be launched later this year, and which will include “new content discovery features which take advantage of viewing and profiling data accumulated over the past 10 years and more.”
But it adds that the near-term outlook will continue to be “a challenging one” for Quickflix.
