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published:
06-Sep-07
territories:
Australia
categories:
General market development
Key online rental company reports rapid growth
Australian online DVD rental market showed signs of healthy growth in the year to end July 2007. Leading independent operator Quickflix, listed on the Australian Stock Exchange, increased its total number of paying subscribers by 84% to 16,455 by the end of July 2007, compared with 8,939 a year earlier. A further 2,727 trial subscribers were using the service, compared with 1,171 the previous year, meaning that the proportion of trialists rose from 11.6% to 14.2%. Both new subscribers (up 72% to 4,207) and unique visitors to the company's website (+103% to 176,708) also increased substantially over the same period.
Established in December 2003, Quickflix is the second-largest online rental company in the Australian market after BigPond Movies (BM), which is owned and operated by national telco Telstra. Although BM does not release official subscriber numbers, a recent report by CCZ Equities accorded it a 68% share of the total online rental market at end June 2007.
Our take...
According to Quickflix's own analysis, by end 2006 fewer than one per cent of Australian DVD households subscribed to an online rental service. In contrast, Screen Digest analysis indicates that 2.4% of DVD households in the UK were subscribing to similar services by end 2006 and our US research partner Adams Media Research has calculated that in the US the figure had reached 9%. This serves to put the size of Australia's apparently dynamic online rental sector in context. Whilst the level of growth recorded is encouraging, it still has a long way to go before it will have any real impact on the country's traditionally strong rental market. Although the number of rental DVD units shipped has been falling since 2004, the sector still accounts for almost a third of consumer spending on DVDs. This is very similar to the US figure but more than twice the 14% share recorded by British rental spending in 2006.
The relative immaturity of the Australian online rental market is further illustrated by the ratio of trialists to paying customers in Quickflix's subscriber base. Typically fewer than 10% of active subscribers to thriving European online services such as LoveFilm or Glowria are benefiting from free trials at any given time, whilst for Netflix the figure has fallen to less than 5%.
However, the strong growth shown by Quickflix which—unlike Netflix or Glowria but in common with LoveFilm—has faced strong domestic competition from the start, reflects the way in which the company has aggressively marketed its service. It signed a promotional deal with Australia's leading technology retailer Harvey Norman last month (August) and a white-label deal with Woolworth's Big W division in June 2007. Quickflix also signed a marketing deal with Coles Online, a division of Australia's largest retail chain Coles Myer, for promotion of its service to the supermarket's online customer base in May 2006. Other marketing partners include Telstra's arch-rival Optus, television broadcasters Win Corporation and Special Broadcasting Service (SBS), cinema operator Hoyts and online portals Yahoo!7 and ninemsn.
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Analyst, market intelligence & notices
Reports
Articles
(10) 1-10 showing
DVD hardware overtakes the VCR
World DVD installed base outnumbers VCRs for first time
published:
01-Nov-07
territories:
Australia, Austria, Belgium, Brazil, Canada, China, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Italy, Japan, Korea. Rep [S], Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Portugal, Russian Federation, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand, UK, USA - Asia-Pacific, South and Central America, Central and Eastern Europe, Europe, International (exc.US/Canada), North America, Western Europe
David Scott
Movie piracy in Asia-Pacific
Most countries in the region are stepping up efforts to fight the theft of intellectual property, although the reputation of such states as China and Malaysia as hotbeds of piracy remains
published:
12-Jun-07
territories:
Australia, China, Hong Kong, India, Indonesia, Japan, Korea. Rep [S], Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand - Asia-Pacific
David Scott
Global video piracy still strong
Despite the seizure of over 130m counterfeit discs worldwide in 2006, piracy is still rife, with France, UK and Japan behind China in the top five piracy territories (by value)
published:
15-May-07
territories:
Australia, Brazil, China, France, Germany, Italy, Japan, Mexico, Netherlands, Spain, Sweden, UK - World
Richard Cooper
Rentmailer VoD offerings
Online DVD rental firms are building their portfolios with digital distribution in a strategy pioneered in the UK by DVD-by-post specialist LoveFilm and now spreading to Europe, the US and Australia
published:
25-Jan-07
territories:
Australia, France, Germany, UK, USA - Western Europe
Marie Bloomfield
Rise of high definition TV channels
At the end of 2006 there were 106 high definition television channels worldwide. We forecast there will be 250 by 2010, 120 of them in Europe
published:
25-Jan-07
territories:
UK, USA, Australia, China, Germany, Italy, Korea. Rep [S], Poland, Sweden, France - Europe, Nordic Region, North America
Vincent Létang
World video turns corner
World consumer spending on buying and renting video software fell for the first time in eight years in 2005. Consumers worldwide spent $51.8bn on video software in 2005 - down more than six percent on the amount spent in 2004. DVD software at a new high in 2005 - up five per cent compared with the previous year to $48.1bn - was insufficient to compensate for a 62 per cent fall to $3.4bn in VHS spending. In 2004 the digital format posted worldwide growth of 40 per cent, and retail sales of 1.9bn units. In 2005, growth slowed to 11 per cent in volume, generating retail sales of 2.1bn units.
published:
01-Nov-06
territories:
Australia, Austria, Belgium, Brazil, Canada, China, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Indonesia, Ireland, Italy, Japan, Korea. Rep [S], Malaysia, Mexico, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Russian Federation, Spain, Sweden, Switzerland, Taiwan, Thailand, UK, USA - Asia-Pacific, South and Central America, Central and Eastern Europe, Regional Totals, Western Europe
David Scott
Next-generation console games
Developers and publishers are lining up for fierce
competition between the next generation of games
consoles - Microsoft's Xbox 360, Sony's PlayStation
3 and Nintendo's Revolution. We analyse the runners
and riders and the strategies likely to be followed.
published:
01-Mar-06
territories:
Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK, USA - Central and Eastern Europe
Ed Barton
OZ online DVD renters square
Aggressive pricing policies are being introduced into
Australia's online DVD rental market in an effort to
stimulate a market with only 0.5 per cent penetration.
published:
17-Nov-05
territories:
Australia
David Scott
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Western Europe
Hardware Households
