Quickflix begs customers for money after shareholders’ rejection

THIS could be the end of this media business. You know you’re in trouble when you have to ask your customers to give you money after shareholders said ‘no thanks’.

QUICKFLIX is going cap in hand to its customers for money after shareholders snubbed the online streaming service’s latest capital raising.

The Perth based company, the first movie and TV streaming business in Australia, is asking its 120,000 or so customers to buy up to $1 million in new shares.

In a letter to customers, chief executive Stephen Langsford said any funds raised would be put towards working capital and to invest in new content and marketing.

The company is looking to beef up its offering as it braces for an onslaught of competition in 2015.

Global giant Netflix will establish its Australian service in March, while Nine and Fairfax’s joint streaming venture, Stan, will launch early in the new year and Foxtel will expand its online Presto offering to include TV.

Quickflix is offering more than 330 million shares to customers at a price of 0.3 cents, which is above its current 0.2 cent share price.

The company, which was established in 2004, has accumulated tens of millions of dollars worth of losses in recent years, including a more than $10 million loss in 2013/14.

The move comes after shareholders took up just $650,000 of the $5.7 million worth of new shares on offer in its latest renounceable rights offer.