Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Quickflix 2010 AGM Presentation


Published on

Quickflix passing through 66,000 active subscribers and $9m p/a in revenue.

  • Be the first to comment

  • Be the first to like this

Quickflix 2010 AGM Presentation

  1. 1. Annual General Meeting29 November 2010
  2. 2. 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
  3. 3. 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 p.a. in Sep 10 quarter  Targeting the mass consumer market of over 6m households in city and regional areas 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 $20 per month  Introduction of subscription video on demand will drive faster growth and greater consumption page 3 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Nov-10 Trialists Paying subscribers Subscriber growth accelerating
  4. 4. Subscriber acquisition rate increasing at reduced cost  Quickflix is adding new subscribers at double the rate of a year ago  Marketing cost to acquire each customer has fallen 50%  Word of mouth referral is generating 1 in 3 of sign-ups  Retention levels maintained despite high growth rates  Strong finish to FY10 driving growth in early FY11 page 4 - 10 20 30 40 50 60 - 5,000 10,000 15,000 20,000 25,000 30,000 FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY11 Q1 New sign-ups (# LHS) Marketing CPA ($ per sign-up) 0% 15% 30% 45% 0% 5% 10% 15% FY05 FY06 FY07 FY08 FY09 FY10 FY11 Q1 Trialist % of total subscriber base (average,RHS) Paying subscriber net churn (average % per month,LHS)
  5. 5. 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. 9 600 1,300 2,000 Quickflix subscription DVD & Blu-ray rental DVD & Blu-ray retail PayTV subscription Revenue ($M) Quickflix: high growth in a $4B market
  6. 6. 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 page 6 - 10,000 20,000 30,000 40,000 50,000 60,000 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Quickflix growing its title range and subscriber base Title range (# titles) Subscribers # Cinema: 20 Titles Kiosk: 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
  7. 7. High customer engagement. Quickflix is a fun part of our subscribers’ day and social interaction. page 7
  8. 8. Now 2011 Future DVD Subscription  Simple low cost subscription Over 43,000 titles Latest release and classic movies, TV, sport, music, documentaries High quality and portable DVD & Blu-ray formats Available to anyone with a DVD player and internet add Streaming Digital streaming + DVD Low cost subscription Instant streaming access to the lounge room & mobile “Value” content bundles Premium PPV titles OTT delivery to selected devices to maximise reach Available to anyone with adequate internet and a compatible device No new STB required! Any movie anytime anywhere Expanded digital service + DVD Broad consumer choice across titles, format, quality & device Deep digital library Instant streaming to most popular devices Central entitlement, “buy once” for TV, PC, mobile Broaden addressable consumer base Quickflix subscription with digital streaming launching 2011 page 8
  9. 9. 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 $20M p.a. page 9 AnnualisedRevenue$M - 100,000 200,000 300,000 400,000 500,000 600,000 $0 M $20 M $40 M $60 M $80 M $100 M $120 M $10 M $20 M $50 M $100 M 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 Payingsubscribers Funded growth Self-funded growth accelerating
  10. 10. 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 page 10
  11. 11., Thank you. Any questions? Investors: Media: