"Still it sounds like the longer govts of both stripes stuff around over NBN..the longer it will take for Netflix to get here......"
How is that a problem for NFLX and not QFX? Surely anything to do with NBN roll out delays or internet infrastructure issues of any sort within Aus would also be a issue for QFX since their future is streaming?
"Quickflix, a company that would serve as a direct competitor to Netflix's Australian operations, welcomes the challenge."
Of course they do. He would hardly state otherwise, or the SP would tank tomorrow.
But all hype and talk about potential aside, how can a small Aussie market cap company, possibly compete against a multi billion dollar international in streaming video business?
Considering it's a business which (for content especially) has huge costs involved. NFLX spend something like 2-3b a year on content.
Then there is all the infrastructure and cloud space costs.
Unless of course, as hoped by some already, they team up with Amazon.
On their own, I can't see how they could compete price wise and on content, while still maintaining organic growth, a competitive price structure for the service and remaining profitable at same time.
Seems to me there is a lot of hope building by investors, hope of improved content, increased subscription numbers, hope of a M&A and most of all hope that NFLX doesn't enter the Aus market in strength no matter what the CEO tries to say otherwise.
Of course there is always the mail-order DVD business, not sure about Aus but video stores here seem to be getting replaced by DVD vending machines at most malls and supermarkets.
Anyway, look forward to the next quarterly, see how things are shaping up, especially in regards to increased content,subscription numbers and revenue.
Kat.
QFX Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
