Quickflix, the Australian DVD rental and media streaming company, is now seeking money from its customers after a rights issue fell well short of target.
The rights issue to raise $5.7 million to fund investment in content and marketing, ahead of the Netflix move to Australia in March, closed with only $650,814.73 invested.
The company has sent a letter to customers offering shares at $0.003 each. However, the shares last traded below this price, at $0.002.
“Quickflix as an early leader in online DVD rental and now as a pioneer of streaming of movies and TV series in Australia and New Zealand is operating in one of the fastest growing sectors globally in entertainment and media,” writes Stephen Langsford, Chairman and CEO.
The US streaming giant Netflix has finally announced it will launch in Australia in March.
Quickflix believes competition will be good for the market generally, encouraging more people to use media streaming services.
Local Australian players are also entering the market.
Nine Entertainment and Fairfax Media have launched a $100 million joint venture, Stan, which will come online early next year.
“Quickflix will take advantage of the increase awareness of the streaming category arising from the marketing efforts of major competitors and its existing presence in devices and other channels,” says Langsford.