NetFlix 2002 Annual Report Download - page 33

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Please find page 33 of the 2002 NetFlix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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not be a good indicator of our future or long−term performance. The following factors may affect us from period−to−period and may affect our long−term performance:
• our ability to manage our fulfillment processes to handle significant increases in the number of subscribers and subscriber selections;
• our ability to improve or maintain gross margins in our business;
• changes by our competitors to their product and service offerings;
• price competition;
• our ability to maintain an adequate breadth and depth of titles;
• our ability to manage our inventory levels;
• changes in promotional support offered by studios;
• our ability to maintain, upgrade and develop our Web site, our internal computer systems and our fulfillment processes and utilize efficiently our shipping centers;
• fluctuations in consumer spending on DVD players, DVDs and related products;
• fluctuations in the use of the Internet for the purchase of consumer goods and services such as those offered by us;
• technical difficulties, system downtime or Internet disruptions;
• our ability to attract new and qualified personnel in a timely and effective manner and retain existing personnel;
• the amount and timing of operating costs and capital expenditures relating to expansion of our business, operations and infrastructure;
• our ability to effectively manage the development of new business segments and markets;
• our ability to maintain and develop new and existing marketing relationships;
• our ability to successfully manage the integration of operations and technology resulting from acquisitions;
• governmental regulation and taxation policies; and
• general economic conditions and economic conditions specific to the Internet, online commerce and the movie industry.