Quickflix (ASX: QFX) and Rewardle (ASX: RXH) have announced a partnership that will see the companies work together in an attempt to drive customer acquisition for Quickflix while adding value and increased engagement for Rewardles merchants and members.
Quickflix, a TV and Movie streaming and DVD rental service, believes to see value in teaming up with Rewardle’s customer loyalty program. Rewardle is a next generation membership, points, rewards and payments platform operating as the modern-day digital version of traditional local merchant “get one-free” loyalty card programs. They have over one million members using local business such as cafés, gyms and fast food stores. Under the agreement Rewardle will integrate special offers for Quickflix streaming entertainment as rewards that will be made available to members for redemption via its platform.
Following the release of Netflix and increased competition among streaming providers in Australia, Quicklfix is hoping the partnership will increase customer awareness and uptake.
According to Quickflix CEO Stephen Langsford “Rewardle is enjoying rapid growth and represents an exciting new channel to reach our target audience. Quicklfix has established a great streaming platform and is bolstering its subscription streaming content in partnership with Presto.”
After a strong finish at the end of last year, Rewardle has since made a net loss of $4.2 million for the first half of the 2015 financial year. Rewardle is hoping the addition of a Quicklfix to its rewards programs will increase customer uptake and value for shareholders. Rewardle MD Ruwan Weerasooriya stated “Movie and TV streaming entertainment serves as a fantastic, high-value member reward incentive. It is an exciting new category for Rewardle to participate in and we are delighted to be partnering with Quickflix which shares our spirit for innovation and being at the forefront in driving new consumer behaviour.”
In September last year we at Wise-Owl issued a float watch for Rewardle. We recognised that the company is reliant on external capital and that there are limited barriers to entry leaving the company exposed to competitive risks.