Quickflix slashes jobs
The Aussie video-on-demand service has sacked one third of its workforce as it awaits an announcement about new funding.
(Credit: Sony; Quickflix)
The Australian Financial Review is reporting that Quickflix — the closest thing we have in Australia to Netflix — has slashed one third of its staff as it hits a cash crunch, with just AU$2.2 million in the bank.
Quickflix had previously halted its ASX trading, saying that it had an announcement about a new overseas investor, although worryingly it hasn't actually made the announcement yet.
Interestingly, LifeHacker spotted this titbit in the market update that it released yesterday when it announced the cuts: it costs Quickflix AU$60 for each new customer. That's mainly advertising costs, but, as LifeHacker pointed out, when you're only charging AU$14.95 per month for streaming, that's a long time until you're profitable.
Quickflix has put a lot of effort into partnerships this year, with its app now on the Xbox, PS3, Samsung tablets and mobiles, as well a number of smart TVs.
Let us know in the comments whether you're a subscriber, and why.
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The issue here is that while they have *some* good content, the selection simply isn't large enough to justify paying $15 a month yet. Add to this the fact that there are ways to access Netflix from Aus if you know where to sign up for a $5 a month VPN service. 8$ for netflix US $5 for VPN = 13$/mo for access to over 10000 titles, compared to $15/mo for QF's much smaller library... seems like a no brainer. Despite this I'm sure that as QF obtain more licences they should become as popular as Netflix is in the US. It will be massively profitable in the long term if it can make it through the tough times now and keep increasing the range of content.
But putting that aside, even if it were not possible to stream the most recent movies, because of cost, access to anything moderately modern would have been a start. I tried the service from Jan to Mar this year and the selection of movies was truly pitiful. I am seriously not joking when I state that the streaming movie selection was pitiful. Most were Z-Grade movies from the 1980s or earlier. Absolute shockers!
I would like QF to succeed because the streaming itself worked fine; however, the movie selection, as explained, was a shocker. Instead, I now use AppleTV across my NBN connection. That is breadth of movie selection that I expected from QF.
I have been with them for along time and noticed over the last few months how they have just deteriated so badly.
1: Their service has gone downhill badly
2: Takes months to get a new release which you can readily pickup at a video store
3: Discs are displayed as having them in sets when they havent got one or more
4: Told after waiting 2 months they would be getting a replacement disc for a tv series in a few months
5: Not replacing damaged or lost discs in sets and very frustrating when you are told you are on the top of their list to get it and they know they havent got it and might not have it for months--its readily available to purchase.This is deceptive/misleading
6: TOLD THEY WERE NEGIOTIATING a deal with aust post to deliver fast and wasnt true
7:Discs take longer to show up recieved--they havent enough staff
8: Discs taking longer to arrive--they havent enough staff
Overall quickflix isnt not worth the effort now and they are in financial trouble,laid off 1/3 staff recently{explains the drop in service}
I am only waiting on a couple discs from a tv series then Im gone--been telling friends not to give them ago now especially if you are after new releases and their streaming titles arent very many
Expecting them to go down the gurgler shortly--they were suspended on the stock exchange and shares have plummeted to 2cents
Heres why
http://www.nbr.co.nz/opinion/quickflix-crisis-ck
its a pity they used to be good