The Government has offered Australia's three mobile operators, and vividwireless, renewal of their existing spectrum allocated on 15 year licences in the late 90s and early 2000s at set prices, while the Government expects to rake in $3 billion.
Colman added: "The impact of new formats requiring multiple inventories in video stores – DVDs, HD-DVD and Blu-ray DVDs – represents technologically perfect timing for change of market share between video stores and online companies such as QFX against rental store system. The looming market gap between HDTV consumer equipment (LCD/plasma screens/players) and software provisions by video stores and pay TV will provide a huge free kick to Quickflix."
Quickflix says it believes the download market to be severely constrained by three major factors: "inadequate broadband infrastructure; insufficient content because Hollywood protects the earlier DVD window as DVD delivers the vast majority of studio revenues and profitability; and ease of use – when enjoying movies at home consumers want a quality, no fuss experience, typically watched on a television. Movies on demand over the Internet has a long way to go before it achieves this benchmark."
Quickflix says its download movie strategy is "to continue to build the Quickflix brand and a large customer base introducing the download option through our world-class online interface as consumer demand is sufficient to justify the investment."
David Bass
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