Overview

Company Profile

Netflix, Inc. (NASDAQ: NFLX) is the world's largest online movie rental service, with more than 11 million subscribers. For only $8.99 a month, Netflix members can instantly watch unlimited movies and TV episodes streamed to their TVs and computers and can receive unlimited DVDs delivered quickly to their homes. There are never any due dates or late fees. Netflix members can exchange DVDs as often as they want using a postage paid return envelope. Members can choose from a vast selection of DVD titles and a growing library of movies and TV episodes that can be watched instantly. Netflix is partnering with leaders in consumer electronics to bring to market a range of devices that can instantly stream movies and TV episodes from Netflix directly to members' TVs. These devices currently include Blu ray disc players and new Internet TVs from LG Electronics; Blu ray disc players from Samsung and Best Buy's Insignia brand; the Roku digital video player; Microsoft's Xbox 360 game console; TiVo digital video recorders; and, soon, the PS3 computer entertainment system and Internet TVs from Sony and VIZIO. For more information, visit http://www.netflix.com/.

Our subscribers love us... We have been rated No. 1 in online retail customer satisfaction by independent surveys from Neilsen Online and for nine consecutive periods by ForeSee/FGI Research. Over 90 percent of surveyed subscribers say that they would recommend our service to a friend.

...because we offer the best online rental experience. Continued focus on making the best service even better. We lead the rental market in content selection, offering 100,000 titles on DVD and a separate library of over 17,000 choices instantly streamed to your computer and your TV, bundled under one subscription plan. Personalized Choices. Proprietary software offers personal movie recommendations based on each subscriber’s individual movie preferences. Quick Delivery. 58 distribution centers enable Netflix to provide more than 97 percent of its subscribers with generally one-day delivery. 24/7 toll-free customer service.

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We’re the clear leader of online DVD rental. Since we invented online DVD rental in 1999, our total subscribers have grown at a compound annual rate of 64 percent. Strong growth – In just nine years, online DVD rentals has grown to an estimated 12 million subscribers at the end of 2008. Solid growth potential for many years – DVD rental totals approximately $8 billion annually, so we have room to grow as more people switch to online DVD rental.

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We intend to expand our leadership position in online DVD rental into Internet delivery of content. Many of our core competitive advantages transition well into Internet delivery of content: – Easy to use and intuitive website – Personalized movie recommendations based on more than two billion ratings from our subscribers – Relentless focus on continuously improving the customer experience – Proven competence in making unlimited subscription a profitable business model Consumer adoption of Internet delivery of content to the television will grow slowly, as have other new consumer technology products. As Internet delivery emerges, we are uniquely positioned to offer access to the widest range of content, through a bundled offering combining DVDs by mail with instant delivery over the Internet, all under one unlimited subscription plan.

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In Summary: Netflix growth strategies. Leverage our online DVD rental leadership to grow both subscribers and net income. Make the best product – and the best consumer experience – even better. Lead the expansion of Internet delivery of content by offering our subscribers both mail delivery and a continuously improving Internet delivery option.

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Hear from Netflix Executives

Andy Rendich Chief Service and DVD Operations Officer
	A conversation with Andy Rendich, Chief Service and DVD Operations Officer, as he discusses a day in the life of a DVD at Netflix. Click here to watch the video. March 2008

Ted Sarandos Chief Content Officer

A conversation with Ted Sarandos, Chief Content Officer, as he discusses the long life of the DVD format. Click here to watch the video. April 2007