Quickflix (ASX: QFX) has engineered a coup in a deal with Telstra (ASX: TLS) that would see Telstra refer BigPond Movies DVD customers to Quickflix.
Quickflix will make a variable payment to Telstra based on the number of customers who transfer to its DVD rental service. Quickflix will also acquire BigPond's library of DVD and Blu-ray discs and equipment.
As a result of the agreement, Quickflix will significantly increase the depth of its library of latest release and catalogue movie titles.
In addition, the company is aiming to provide the whole of Australia with next day delivery in all major cities.
Telstra has advised its customers that it will close the DVD rental service of BigPond Movies on 30 September 2011.
Stephen Langsford, Quickflix founder and executive chairman, said “We are delighted to enter this agreement with Telstra and look forward to delivering a great service for BigPond Movies DVD customers who choose to continue with DVD rental."
Quickflix aims to become a major entertainment brand in Australia and attract a million customers within five years.
The company is already Australia's leading online DVD rental subscription company with almost 50,000 movies, TV series, documentary and sporting titles across 400 genres.
With over 80,000 active subscribers, 200,000 online members and a growing fan base in facebook, MySpace and twitter Quickflix is also Australia's leading online movie community generating over two million movie reviews and ratings.
Since 2004, Quickflix has delivered over nine million DVDs to households all over Australia.
In one swoop, this deal by Quickflix will add scale and customers to the company's business