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. 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 $20 per month
Introduction of subscription video
on demand will drive faster growth
and greater consumption
page 3
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Nov-10
Trialists Paying subscribers
Subscriber growth
accelerating
4. quickflix.com.a
Subscriber acquisition rate increasing at
reduced cost
Quickflix is adding new subscribers
at double the rate of a year ago
Marketing cost to acquire each
customer has fallen 50%
Word of mouth referral is generating
1 in 3 of sign-ups
Retention levels maintained despite
high growth rates
Strong finish to FY10 driving growth
in early FY11
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-
10
20
30
40
50
60
-
5,000
10,000
15,000
20,000
25,000
30,000
FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY11 Q1
New sign-ups (# LHS) Marketing CPA ($ 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. 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. 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
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. 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. 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