The Australian media streaming and DVD lending company Quickflix has launched a rights issue to raise $5.7 million to fund investment in content and marketing.
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, early next year.
Quickflix, which has about 120,000 paying customers, says it has access to the largest potential streaming audience in the market because its service is available on the widest range of popular devices.
It combines subscription and transactional models, where subscribers access a entertainment for one price a month but can also pay more to see new release, premium pay-per-view TV series.
Quickflix says its working to reduce the cost of content, its biggest expenditure.
“The Company is working with licensors to align payment profiles for existing and future commitments to better match expected customer uptake and revenue growth,” Quickflix said in a statement.
The company says it is pursuing strategic partnering opportunities in Australia and the region as interest in the sector builds and industry players seek to get a foothold.
The rights issue offers five shares for every four shares held at an issue price of $0.003, or about the same as its last traded price.
(Disclosure: Fairfax Media owns Allure Media, the publisher of Business Insider Australia.)