Post on 30-Jun-2015
transcript
quickflix.com.au
Annual General Meeting29 November 2010
quickflix.com.au
Highlights Australia’s leading online movie subscription
brand
Over 66,000 active transacting subscribers
Double digit growth rate per quarter
Revenues of $9m p.a (current run rate) tracking upwards with subscriber growth
Subscription contribution increasing with scale
Funded to increase share of video rental market
quickflix.com.au
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Subscriber growth to build market share
Over 66k subscribers using the service today
– Total subscribers up 70%– Paying subscribers up 40%
Revenue run rate up 35% to $9M in Sep 10 qtr
Targeting the mass consumer market of over 6m households in city and regional who already own a DVD or Blu-ray player- no set top box or additional device required to access our service
Most popular subscriptions fees at approx $20 per month
Introduction of subscription video on demand will drive faster growth and greater consumption
Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Nov-100
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Trialists Paying subscribers
Subscriber growth accelerating
quickflix.com.au
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Subscriber acquisition rate increasing at reduced cost Quickflix is adding new subscribers
at double the rate of a year ago
Marketing cost to acquire each customer has fallen 50%
Word of mouth referral is generating 1 in 3 of sign-ups
Retention levels maintained despite high growth rates
Strong finish to FY10 driving growth in early FY11
FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY11 Q1-
5,000
10,000
15,000
20,000
25,000
30,000
-
10
20
30
40
50
60
New sign-ups (# LHS) Marketing CPA ($ per sign-up)
FY05 FY06 FY07 FY08 FY09 FY10 FY11 Q1 -5%
0%
5%
10%
15%
0%
15%
30%
45%
Trialist % of total subscriber base (average,RHS)Paying subscriber net churn (average % per month,LHS)
quickflix.com.au
Physical DVD rental and retail stores market in decline. PayTV growing slowly with challenges to maintain high ARPU. Kiosks limited by sub-scale network. Set top box penetration tiny. Few barriers in the way of Quickflix sustaining growth.
Quickflix subscription DVD & bluray rental DVD & bluray retail PayTV subscription
9
600
1,300
2,000Revenue ($M)
Quickflix: high growth in a $4B market
quickflix.com.au
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Quickflix: 43,000 movies and
TV titles, adding 400 per month.
Everything from latest release box
office hits to classics, foreign, arthouse,
sport and documentaries.
Competitive advantages: Massive range of content, first release window after cinema
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10-
10,000
20,000
30,000
40,000
50,000
60,000
Quickflix growing its title range and subscriber base
Title range (# titles)Subscribers #
Cinema: 20 TitlesKiosk: 30 titles
Fetch TV: 100 movies + TV Channels
Video store: ~2,000 titles, rotating
Foxtel: ~2,500 titles rotating + TV channels
iTunes:~4,000 movies + TV show
quickflix.com.au
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High customer engagement. Quickflix is a fun part of our subscribers’ day and social interaction.
quickflix.com.au
Now 2011 FutureDVD Subscription
Simple low cost subscriptionOver 43,000 titlesLatest release and classicmovies, TV, sport, music, documentariesHigh quality and portable DVD & Blu-ray formatsAvailable to anyone with a DVD player and internet
add Streaming
Digital streaming + DVDLow cost subscriptionInstant streaming access to the lounge room & mobile“Value” content bundlesPremium PPV titlesOTT delivery to selected devices to maximise reachAvailable to anyone with adequate internet and a compatible deviceNo new STB required!
Any movie anytime anywhere
Expanded digital service + DVDBroad consumer choice across titles, format, quality & deviceDeep digital libraryInstant streaming to most popular devicesCentral entitlement, “buy once” for TV, PC, mobileBroaden addressable consumer base
Quickflix subscription with digital streaminglaunching 2011
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quickflix.com.au
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Subscription profitability improving with scale Subscription model provides a recurring revenue stream Current capital resources applied to drive growth to $20M p.a revenue Self-funded subscriber growth accelerates from $20M p.a
Annu
alis
ed R
even
ue $
M
$10 M $20 M $50 M $100 M$0 M
$20 M
$40 M
$60 M
$80 M
$100 M
$120 M
-
100,000
200,000
300,000
400,000
500,000
600,000
Service costs
Overhead
Content investment
Contribution for Marketing/Profit
Paying subscribers (RHS)
Estimated cost and contribution rates at future revenue levels*
*Revenues and costs based on DVD subscription model only
Paying subscribers
Funded growth
Self-funded growth accelerating
quickflix.com.au
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The year ahead Double revenue and subscriber base in 18
months and achieve self funding growth To do this we plan to:
– increased marketing activity to attract subscribers, spending $4M p.a
– increase our investment in content to over $2M p.a
– fund subscriber growth from operating cash flow & our capital resources
Continue to develop the best consumer offering in the marketplace which includes launching our subscription digital delivery service
quickflix.com.au
Entertainment, delivered
Thank you.
Any questions? Investors- investors@quickflix.com.au
Media- media@quickflix.com.au