Quickflix turmoil as CEO quits
Quickflix, the Australian firm that introduced internet-only pay-television to New Zealand in March, appears in turmoil following financial uncertainty and the resignation today of its chief executive, Chris Taylor, and two directors.
Trading in the company's shares on the ASX, where the firm was valued at A$25.3 million, was suspended on Thursday and Quickflix said in a statement today that trading was not expected to resume until the end of next week.
Quickflix said negotiations were continuing over the future funding of the company.
"The directors and management are currently pursuing several options and working through a restructuring plan to reduce costs and capital requirements," it said.
Taylor will leave the company in March.
Quickflix hoped to establish itself in the New Zealand and Australian pay-television markets before the forecast arrival of larger United States-based competitors such as Netflix, but appears to have been constrained by a relative lack of content and by the restrictive data caps offered to most broadband consumers in the region.
The Commerce Commission said in May that it had identified two companies that might join Quickflix in competing with Sky Television by providing television services online at a cost of about $10 a month, and another that planned to sell movies online. However, so far that extra competition has not eventuated.