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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IPTV has been launched prematurely in Oz without adequate content. I am a Quickflix DVD early subscriber and their DVD library is excellent (55,000 titles now and maybe 5000 at beginning) and also an iiNet IPTV subscriber (Fetch TV) in which the films in their MovieBox (30 films a month included with subscription) are a mix of "B" grade and even "C" grade - woeful. They have about 1000 late release movies "on demand" at $6 or $7 pay-on-demand and older release at $4 per view but dont try to watch Saturday night as downloading takes 1 or 2 hours and sometimes seizes. At least many of their TV channels (Travel Channel, National Geographic, Discovery, etc) are available immediately on demand. I subscribed to iiNet IPTV mainly for these specialist channels. At least iiNet has the cash flow from internet to pull their IPTV up by its bootstraps and experiment with pricing and service models!
Posted by MikeInAdelaide
I think Restricted_access' comment is somewhat over the top - the library of QF content does have movies and shows that many people would want to watch - it even has some HBO series, which you can't get in Aus without purchasing dvds or paying for the much more expensive Foxtel channels.

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.
Posted by ResoLite
QF is going broke because its content is pitiful; truly pitiful. I don't want to pay 10 cents a month for a bunch of Z-Grade movies that no-one has heard of and no-one cares about. Content is King, and QF has no decent content.
Posted by Restricted_access
What sort of stuff would you want?
Posted by Nic Healey
Good question Nic. I signed-up with the expectation that QF was a streaming service with access to recent movies. It turned-out recent movies were only available via DVD. To state the obvious, I expected those to be available for streaming. I guess that I expected the movie selection to be like AppleTV or Bigpond or something similar.

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.
Posted by Restricted_access
Well it looks like Quickflix is dying.
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
its a pity they used to be good
Posted by hadenough

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