Listed internet streaming company Quickflix has signed a multi-million dollar deal with AAPT to host its movies and televisions shows in the telco's Australian data centres.
The deal is worth less than $10 million where Quickflix will pay AAPT to host its content. Quickflix chairman and chief executive Stephen Langsford said the move was part of a cost-saving program first announced last November.
"I think the large part of the cost program is now done and we're now resuming a focus on growth," Mr Langsford said. "We've gone from a peak cash burn of $1.5 million per month to our last quarterly report where it was down to $400,000 per month."
The consolidation of IT systems could also lead to faster downloads for customers. But both parties acknowledged that content streamed from Quickflix would reduce a customer's available monthly download quota, which varies between internet plans.
Mr Langsford said a standard definition movie would typically require a 1 gigabyte download. This means a TPG customer on a $50 per month plan could stream 500 movies while a Telstrauser on a $50 per month plan would only be able to download 50 movies per month.
AAPT chief executive David Yuille said data allowances were gradually increasing across Australia and that he was negotiating with a range of internet service providers to allow Quickflix movies to be downloaded outside the monthly quota.
"I don't know that Optus or Telstra will move on this because they've got their own plans," he said. "But we've got a lot of downstream ISPs who are excited about the idea.
"And a lot of this will change under the national broadband network."
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