BigPond Movies Sells Out To Quickflix

Competition for DVD rental by mail in Australia essentially just disappeared. Telstra's BigPond Movies division is selling its rental business to rival Quickflix, and will stop postal rentals after September 30 2011.

Telstra wants to concentrate on direct download of movies instead, via its T-Hub and through PCs. Quickflix has talked up its plans to offer downloads -- the obvious future for movie rentals, especially in a post-NBN universe -- but doesn't yet have a product.

When I tested Quickflix earlier this year, I found that slow delivery speeds by mail were the biggest problem. In its announcement to the ASX, Quickflix says that buying out Telstra's inventory will ensure it can offer "next-day delivery in all major cities". It will be interesting to see if that happens -- and also if Quickflix can become a profitable business when it's the only game in town.


    Quickflix won't turn into a monopoly that can abuse its position though, since they still have to compete with direct download, DVD vending machines and just not having a DVD mail service.

    I am a current member of Quickflix, have been for years, but the unreliability of getting one of the first few choices means that I am thinking of dropping it. If they put there prices up or anything, I will no doubt just cancel immediately.

    I never understood how this is even profitable? Renting a movie from a store or downloading are much more practical than having one posted to you. It seems like one of those gimmicks that you said to yourself "there is no way that'll be successful" and yet companies still offer it.

      More practicable is it? Only if your local store has what you want which is unlikely if you want anything even slightly non mainstream. Quickflix has 44,000 titles, my local store has maybe 2000. Now do you understand?

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