Sky rival gains backing in US

Quickflix, the Australian-based internet paytelevision service which branched out into New Zealand last year, has secured a A$5 million loan from a United States billionaire that should guarantee its short-term survival.

The company, which has lobbied for the greater regulation of Sky Television, agreed to accept the loan from investors led by media entrepreneur Alki David.

The Hollywood Reporter described David as one of Hollywood’s ‘‘biggest troublemakers’’ in an April article that said he once offered $1m to anyone who would streak in front of US President Barack Obama.

The son of a Greek Coca-Cola bottling magnate, the thrice-married David has also been a parttime actor and model agency owner.

The terms of the interest-bearing loan would allow David and his fellow investors to convert the debt to shares from June at a 20 per cent discount to Quickflix’s prevailing share price. It will need to be approved by existing shareholders at a meeting next month.

David, who will join Quickflix’s board, said he believed Quickflix’s growth prospects were ‘‘staggering’’.

Quickflix entered into an agreement with New Zealand’s Freeview last month. FreeviewHD viewers who connect their set-top boxes or TVs to broadband will be able to access Quickflix services via their Freeview electronic programme guides.

Freeview chief executive Sam Irvine has signalled that he expects the deal to be the first of many allowing viewers to receive pay-TV services through Freeview’s platform.

Trading in Quickflix shares was suspended for two weeks in November while the company sought funding and in the wake of the resignation of chief executive Chris Taylor.

The company is currently valued on the ASX at A$16.7m.

Quickflix provides entertainment programmes and films on an all-you-can-eat subscription basis and pay-per-view, but does not offer sports.