Quickflix board under fire
The Los Angeles film producer leading an attempted board spill of the Perth-based streaming service Quickflix says the company has a "misguided business model" and believes he has "majority support" from shareholders to sweep out its board.
In a move described by Quickflix founder Stephen Langsford as "fanciful", the group of overseas directors, backed by former Quickflix director Don Campbell, officially lodged a notice of meeting on Wednesday night after failing in its first attempt to spill the board in February.
Speaking to _WestBusiness _ from Los Angeles, film producer Matthew Joynes, who is the leader of the group representing Mr Campbell, said Quickflix did not understand its market.
Mr Joynes, who holds no shares in Quickflix, said the company's directors should fall on their swords or prepare to be "voted out by the owners".
"The simple fact, and the sad truth, is this company has failed to deliver something the consumer wants to buy and are prepared to pay for longer than a few months," Mr Joynes said.
"It has raised and (now) lost $40 million and it's not (even) at break even. Growth in America means profits."
In its March quarterly report, Quickflix, which was valued at $9.5 million yesterday, reported a $1.3 million loss.
This came despite its customer base increasing by 16 per cent to 118,557 and a 9 per cent jump in revenue to $5.2 million.
The company has seen its share price more than halve in the past six months and many analysts believe it is stuck in limbo between a DVD rental company and a streaming service without the financial clout to buy in-demand TV shows.
Mr Langsford, Quickflix's chief executive, defended the company's direction and said it was well-positioned to move on the increased interest around streaming services in Australia.
"I am sure our shareholders look forward to profitability, but we are well-established in a space that has significant upside in the market, and there is huge opportunity for us," Mr Langsford said.
"It's an opportunistic try-on. Frankly it's a distraction and I don't need advice on how to run the company from someone who doesn't own any shares."
