Quickflix shares slump 25 per cent after private equity firm sells out
Troubled DVD rental and online streaming company Quickflix has seen its share price collapse a further twenty five per cent today, just a week after venture capital firm Cashel Capital Partners ceased to be a substantial investors in the company.
Quickflix shares today slumped to a record low $0.0015, giving the company a market capitalisation of $2.72m, after being worth $16.2m a year ago.
Asked about the further share slump co-founder and chairman of Quickflix Stephen Langsford conceded: “Our share price is volatile. Quite evidently its disconnected to the strong growth in streaming volumes and new customer signups we recently reported.”
Last week one of the company’s biggest investors Singaporea-based Cashel Capital Partners, sold more than 65m shares in the company.
I cannot believe this company still exists. I subscribed to them years ago and found it the single worst experience I have ever had with a company.
Not only was their customer service disgraceful, they also had a terrible product.
Does anyone have any proof that the Netflix US service has 200,000 Australian customers?
It’s turning into the industry’s most over-used rumour.
I like Quickflix, a DVD arrives within a day or two, can watch tv on iPad or laptop, service is generally quick, problems are sorted, cheaper than going to the movies
They tried to focus on making money rather than delivering a good service. They had so much potential. What a pity.
I find Quickflix service excellent. My kids particularly like watching their movies via their Xbox
Tick tick tick tick….
Anyone taking bets on when it will close? I’m betting it won’t make June 30.
The management team are to blame ……chasing 6-8 week free trials with high costs to service & then poor customer conversions after the trial period….can you imagine the cost of sending up to 6 dvds a week for 6 weeks????
Look at their website…you cant even sign up as a paying customer!! YOU MUST TRIAL FIRST.
I feel sorry for the shareholders…with a competent leadership team they could have been netflix…now they are a dvd store with some infrastructure to offload to new blood…..
Their media releases spouting growth are nothing short of a cover up….a growth in trial customers & decrease in your paying base is not a good news story….more trials = more front end expense with no guarantee of revenues and a decrease in paying customers shows that your service has an issue to be resolved……have they ever heard about retention strategies????
The 200K Netflix number comes from Pocketbook, a tech startup that analyses bank transaction data. Not only is it a small, likely unrepresentative sample, but from a highly tech skewed demographic.
Anyone thinking that there are 200K aussies with VPNs setup to stream Netflix from the US are kidding themselves.
I have been a paid subscriber with these guys for years. I currently get the mailed out DVD/BluRay movies (1 movie at a time). On the holidays I up my subscription to add streaming and 3 movies at a time (as I have more time to watch more content) and roll it back again when I go back to work. The streaming service works through the app on my tv and tablet. It does not buffer (but I have 100 megabit cable), although it sucks that when I travel I can not use it overseas, but I understand that is to do with the rights being for Australia only. I hope they stick around.
Must agree with majority of comments, i’ve tried Quickflix a few times now, and every time I come back I am flabbergasted how poor the offering is.
You pretty much pay to get access to content which you have to pay to watch (streaming service). If you want 10-20 year old content and poor quality streams you might like it.
I give them 6 months and they will be gone, other offerings (other than netflix) have better offerings and they have only just launched.
*Garbage streaming quality
*Small library with sparse updates/changeover
*Unfixed errors where episodes/movies won’t play or play something else entirely.
*Buffering problems
*Laughably overpriced (see reasons above)
But most importantly, trying to get out and cancel is like pulling teeth. There was no easy online ‘opt out’ option, it had to be done via phonecall during limited business hours and being on hold for indefinite period. This would be followed by customer service questioning your decision, followed by passive aggressive arguing and last minute begging on their end. Watch your bank account like a hawk, as several have been charged after cancellation.
All the while, they cry that Netflix is cheating (by offering a better service, something ‘Stan’ also has demonstrated in their short time)