Australian online content provider Quickflix Ltd is now facing serious competition, following the launch of Netflix, Inc. (NASDAQ:NFLX) services in Australia.
The launch of Netflix has led to uncertainties about the future performance of quickfix. This is because there is speculation that the fast rising giant might take over a big percentage of the Australian online content market.
The other local market players are making adjustments to gain competitive edge through additional spending on their marketing strategies, as well as securing rights to air content.
Quickflix is however facing the most uncertainties. This is because the company has experienced a slow growth rate, as well as a constant decrease in the share value for the past three years. Lack of finances has let the company’s inability to expand its customer base.
Quickflix founder however expressed optimism for his company’s survival. He believes that his company will reap some advantage from the publicity gotten within the last few months.
A day before Netflix launched in Australia; Stephen Langsford sent mail to his Quickflix workforce to enquire about their welfare. The quickflix founder has faith that his company will survive. He believes that the company will be able to provide content to subscribers faster than the rivals who are on transactional streaming services. The founder claims that his company is working on improving their services, as well as the overall viewer experience.
Netflix, Inc. (NASDAQ:NFLX), which has experienced massive success in the United States and the European market, has plans to take over the Australian market too. The company’s elaborate and comprehensive services are key to its success as well as giving the streaming giant the capacity to expand their reach.
There is no doubt that Netflix will deliver with their regular exceptionality in the Australian market. It is, therefore, a huge threat to quickflix and the other content providers in the continent. Whether quickflix will survive, the cut throat competition will depend on what countermeasures the company is willing to take.