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Quickflix 2010 AGM Presentation

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

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Quickflix 2010 AGM Presentation

  1. 1. quickflix.com.a Annual General Meeting29 November 2010
  2. 2. quickflix.com.a 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. quickflix.com.a 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 $20 per month  Introduction of subscription video on demand will drive faster growth and greater consumption page 3 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Nov-10 Trialists Paying subscribers Subscriber growth accelerating
  4. 4. quickflix.com.a Subscriber acquisition rate increasing at reduced cost  Quickflix is adding new subscribers at double the rate of a year ago  Marketing cost to acquire each customer has fallen 50%  Word of mouth referral is generating 1 in 3 of sign-ups  Retention levels maintained despite high growth rates  Strong finish to FY10 driving growth in early FY11 page 4 - 10 20 30 40 50 60 - 5,000 10,000 15,000 20,000 25,000 30,000 FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY11 Q1 New sign-ups (# LHS) Marketing CPA ($ 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. quickflix.com.a 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.com.a 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. quickflix.com.a High customer engagement. Quickflix is a fun part of our subscribers’ day and social interaction. page 7
  8. 8. quickflix.com.a 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. quickflix.com.a 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. quickflix.com.a 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. quickflix.com.aEntertainment, Thank you. Any questions? Investors: investors@quickflix.com.au Media: media@quickflix.com.au

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