Quickflix wants to raise almost $6 million to help it secure new TV and movie content ahead of the arrival of US giant Netflix in Australia.

The move comes a day after US giant Netflix announced plans to launch in Australia and New Zealand in March.

Quickflix on Thursday said it would launch a renounceable rights issue of five new ordinary shares for every four held by eligible shareholders.

The new shares will be priced at 0.3 of a cent each, raising $5.7 million for the media company.

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“The funds raised from the issue will support the company’s strategic objectives and be applied to working capital as well as investment in content and marketing to achieve customer and revenue growth,” it said.

Quickflix said TV and movie streaming was growing rapidly in Australia and attracting interest from the likes of Netflix and other rivals.
As competition heats up, Quickflix is keen to cut costs.

It said it was in talks with licensors for movies and TV shows about how much it pays for programs, to ensure its bills better match expected customer and revenue growth.

“The company’s strategy is to move to sustainability through growing customers and revenue whilst rationalising costs,” Quickflix said.

Its shareholders were told in October the company expects to add more customers over the summer as it looks for a tie-up amid flat growth.

Quickflix has been in talks with parties about potential partnerships in its Australian and New Zealand markets as well as opportunities to enter Asia.

Losses blew out to $10.2 million in 2013/14, from a $6.4 million deficit a year earlier.

The launch of Netflix in 2015 is expected to ramp up pressure on Quickflix and pay-TV services such as Foxtel, which recently slashed prices in anticipation.

Yet Netflix’s antipodean offering is likely to lag the US version, given Foxtel owns exclusive rights to many popular shows.