spotify plans, page-3

I'm continually concerned when people tout any potential rival for QFX as a possible suitor.

What would QFX have that Spotify would actually be interested in?

Definitely not any technology? They have better IP in-house, and better (and more scalable) infrastructure.

Content deals? Spotify was able to enter the Australian market with their music streaming service by negotiating their own deals with the labels. In addition, their global size and scale would allow them to extract a lot more value than any of the current arrangements QFX currently holds.

Brand, marketing? Spotify is already a household name locally and while they don't disclose number of paid and unpaid subscribers, I have tell you that I know a lot more people with a Spotify account than a Quikflix. Spotify was also able to enter the Australian music streaming market with little to no marketing outside of word of mouth. They live and breath social marketing.

Customer acquisition? QFX currently services 120,000 paying customers, bringing in revenue of $15 each per month. If a competitor was to take the company over at the current market cap, just to churn these customers, they would be paying $100 per customer. There are a many cheaper ways to sign-up a relatively small % of the total market.

If Netflix or Spotify do enter this market it's not going to be via an acquisition of QFX, but I can promise you it will mark the last days of this business.

If you are holding out for a takeover offer, consider your options closely.