Worried operator REDD Quickflix was having a hard time this year. While the arrival of Netflix and Stan and Presto was good for the competition, it also meant that the pioneer REDD struggling to make money, start-up scheme after scheme remain valid.
Going into trading halt to restructure in late August, the company sent last update shareholders about how the plan is progressing.
The good news is that there is progress. The bad news is that, all things considered, it will still be a massive battle to claw back market share, based on the announcement.
Due to the poor
The first part of yesterday’s announcement was debt restructuring SVOD. He reached an agreement with the licensor for one release approximately $ 2 million of debt, and have negotiations going on to release another $ 4 million from other studios.
This is all good news, because the debt is bad (mmkay). But another way to reduce your debt is to save that Quickflix made by cutting 20% of its employees and reduce these costs by 33%.
Other cost-cutting measures will bring further savings in everything from call center support overheads executive board, passing through a meat grinder.
All up, Quickflix believes that it will save about $ 4 million a year through these spending cuts.
Of course, cost reduction is only half the battle. Quickflix should try to earn money to turn their fortunes around, and in order to do that, he needs to find new sources of revenue.
According to the report, Quickflix already “reached an agreement to enter partnership agreements with operators vault in Australia and New Zealand.” This will allow the company to make a small percentage of registrations for free (but still competing) SVOD platform.
The obvious conclusion is that Quickflix accept our advice and pulling out a subscription service, and focus entirely on its DVD-mail and premium video on demand platform.
Safe money is also on this platform as SVOD Presto, after a previous plan to resell Quickflix streaming platform.
We learn more when their outstanding Quickflix Releases June 30, 2015 annual financial statements, whenever could be.