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

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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

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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

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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

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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