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

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Quickflix 2010 AGM Presentation

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