Netflix is being seen by many as a severe threat to local players in the Australian video-streaming market, especially for the pioneer Quickflix. However, still Quickflix founder Stephen Langsford is confident that his company will be able to ride the streaming wave.
Netflix a threat to local players?
Last week, celebrating its launch in Australia, Netflix threw a lavish party, and actors from Orange is the new Black and Marco Polo played perfect hosts, as champagne and cocktails were flowing wildly. Netflix CEO Reed Hastings and the stars interacted with the media and local representatives.
According to media analyst Steve Allen, the size of the streaming market in Australia is exaggerated, but Quickflix will be affected the most for sure, says a report from The Age. The fear of losing out to Netflix is paramount among local players, and they have all pulled up their socks well in advance to prepare themselves against the global leader. Players like Stan and Presto are putting their best defense forward by conducting loud marketing campaigns and spending big money to gain rights to content.
Quickflix: will it survive?
Quickflix began a decade ago as a company that offered DVDs on rent. It was an online business, and just four years ago it added the streaming services to its portfolio. The company’s shares have declined at a brisk pace, 98.6% in the last three years, says the report. Quickflix is facing trouble expanding its paying customer base as a consequence of a lack of capital.
Still, its founder is optimistic that his company will benefit from the publicity that the streaming has got in the recent months, and for this he thanks his rivals. Quickflix staff received mail from founder Stephen Langsford on the next day of the launch of Netflix in Australia. Through his mail to the employees, he inquired if they were still alive. “How’s everyone feeling?” he said. “We’re alive? Good – because we grew our customers yesterday.”
Langsford believes his company will be able to offer content sooner than rivals on the transactional streaming service, which requires fewer negotiations with rights holders, says the report. Also Langsford said he is working to improve the overall user experience, which could be implemented by the next quarter.
