Quickflix Ltd (ASX: QFX) today announced that it has launched its movie streaming subscription service in New Zealand.
Quickflix will become the first home entertainment company to offer unlimited viewing of Hollywood movies and TV series streamed on-demand over the internet, in that country.
Subscribers in New Zealand will have access to movies over a growing range of web connected devices, including smart TVs, Blu-ray players, gaming consoles, PCs, Apple Macs, tablets and mobile phones.
Quickflix launched the same service in Australia in December 2011, which will soon be available through Samsung smart TVs, Galaxy tablets and smartphones in both countries, as well as Apple iPhones and iPads.
As I mentioned in this article this morning, the death of DVDs is coming. Quickflix is aiming to speed that process up.
Feature films have been licenced from major Hollywood studios including MGM, Warner Bros, Sony Pictures and NBCUniversal, as well as TV series content from HBO, USA's largest premium television company. HBO has also invested $10m in the company in exchange for 83.3m preference shares, which equates to a fully diluted interest of 15.7% on conversion.
The company also announced a content licencing arrangement with BBC Worldwide on the 7th March, to provide high quality TV series from the BBC Worldwide's catalogue of British drama and comedy.
Subscriber numbers are growing rapidly. During the December quarter, total subscribers grew by 24%. With the closure of Telstra Corporation Limited's (ASX: TLS) BigPond Movies DVD rental service on 30th September 2011 (and the transfer of its content library Quickflix), Quickflix how has a market leading position in Australia.
The Foolish bottom line
Revenues have grown by an average of more than 20%, over the last three six month periods. While the company has yet to report a profit, its unlikely to be much longer before it does. If these trends continue, and the company can capitalise, Quickflix could be one to watch.
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Motley Fool contributor Mike King doesn't own shares in Quickflix. The Motley Fool's purpose is to educate, amuse and enrich investors. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Click here to be enlightened by The Motley Fool's disclosure policy.