It Costs Quickflix $60 To Sign Up Each Customer

Quickflix is the closest thing Australia has to a Netflix competitor, but setting up a system to stream movies isn't cheap. Quickflix has actually been suspended from trading since mid-November while it seeks new investors. In a market update today, it revealed an interesting factoid: merely acquiring a new customer costs it $60, which means you'll have to be using its $14.95 a month WatchNow service for at least five months before it makes anything at all.

That cost largely comes from advertising, according to the statement:

Cost of customer acquisition in FY12 increased to $60 per customer from $31 per new customer in FY11 as a result of increased investment in brand and traditional media. For an outlay of $4.0 million in FY11 Quickflix acquired 130,000 trialist signups whereas for an outlay of $9.8 million in FY12 Quickflix acquired only 160,000 trialist signups.

Ouch. Quickflix has also spent lots of money on ensuring WatchNow works on a range of platforms, including consoles (the Xbox 360 and the PS3), smart TVs from Panasonic, Samsung and Sony, and tablet devices from Apple and Samsung. In the future, Quickflix says add additional device support "will be limited to those new devices with a quick payback". Apparently, one of the devices Quickflix sees as offering a quick payback are BlackBerry 10 handsets; it was announced as a major partner at the BlackBerry Jam development conference in Bangkok today.

It's generally agreed that affordable legal options are one of the few ways to combat piracy. As such, no-one in the content creation business wants to see businesses such as QuickFlix fail, but the road ahead looks anything but certain right now.

Republished from Lifehacker


Comments

    If TV shows came out quicker it would be much better. I use Netflix and I still think that is slow but looking at the Quickflix page with all the shows and movies, it looks like its even slower to get new content.

    Wow what about us trial customers. I signed up for it with the xbox deal and it runs till 3rd Jan. To be honest I am very unimpressed with the movie selection that's included. Its all soo old. I doubt I will continue my subscription, unless I am missing something.

      That is the same problem that I found earlier this year, though I used my PS3. The deal seems cheap - until you realise that new movies are only available through the posted DVD service. The streaming service only has very old movies, most of which would rank about Z-Grade. I was incredibly disappointed with the offerings. In fairness, the service worked extremely well over my then ADSL service, but the (poor) choice of streaming movies was not worth 10 cents a month!

    Maybe less spending on marketing and more on acquiring new content would be better at increasing subscribers.

    I do use it alot, but am not seeing too much added content.

    We signed up for a free trial we got with a cheap DVD player (that broke as soon as we tried to use it, should've paid more attention to that in hindsight) & couldn't figure out where to just select a movie to watch & they had a selection that ranged from jack to crap.
    Gave up & used the ps3 & the streaming was seriously awful. Pretty much unusable & we have 8000 speed.
    Very disappointed.

    I've got a Quickflix membership and stream about 4 films a fortnight. Have no complaints except the choice of content is quite limited. Quite happy with what I get for $30 a month, you would spend more in a week filling your petrol tank. Plus with the free content you can get online, who needs T.V. or Foxtel ?

    Last edited 30/11/12 12:01 am

    I use Netflix + Unblock US and it costs $15 a month. Are you telling me that Quickflix is $30 per month? That is crazy.

    I've been using Quickflix since it first became available for the PS3. I've had no issues streaming content. Like everyone else I'd like to see more/better content _but_ there have been massive improvements since the launch.

    Personally I wish the company all the best, as I would like to see them succeed. Their model is the future of content distribution, and I really hope they weren't too early.

    If they do go under I don't know what that means for Netflix ever coming here...

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