Losses have doubled for Netflix competitor Quickflix

Kevin Spacey in Netflix series House of Cards. Photo: Getty Images.

Quicklfix, a competitor to the US streaming media giant Netflix which is launching in Australia at the end of this month, has added a record number of new subscribers but profits are still elusive.

The local video streaming service saw its losses more than double to $8.592 million for the half year to the end of December.

This included $2.9 million of write-down on the Quickflix technology platform and digital content.

However, revenue for the DVD and streaming media group was up 7% to $9.212 million.

Customers totalled 136,670 at the end of December. The number of paying customers was 117,106, a 15% increase over the previous twelve months.

Quickflix says there’s growing demand for streaming with more than 69% of paying customers using it. However, 64% also choose DVD services.

Investment in streaming content increased to $3.1 million during the half-year as the company expanded its subscription and pay-per-view offering.

Quickflix has $2.12 million in cash and says the second half has started with solid growth in new customer signups and a pipeline of upcoming partnership promotional activity which should build further momentum.

As well as Netflix, Quickflix is up against a range of new local competitors including Stan, a $100 million joint venture between Fairfax Media and Nine Entertainment.

“The streaming market is attracting major media and entertainment players and will continue to be very dynamic,” Quickflix said.

“The company continues to progress discussions with potential strategic partners and investors in relation to growth opportunities with Quickflix.”

(Disclaimer: Allure Media, the publisher of Business Insider, is 100% owned by Fairfax Media.)

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