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The฀joy฀of฀movies.฀.฀.
2004฀AN N UAL฀R E PO R T

Table of contents

  • Page 1
    The฀joy฀of฀movies.฀.฀. 2 0 0 4 ฀ A N N UA L ฀ R E P O R T

  • Page 2

  • Page 3
    ...฀online฀movie฀rental฀subscription฀service,฀providing฀nearly฀฀ 3฀million฀subscribers฀access฀to฀more฀than฀35,000฀DVD฀titles฀of฀movies,฀television฀ and฀filmed฀entertainment,฀spanning฀more฀than฀200฀genres.฀Our฀personalized฀ recommendations...

  • Page 4
    ...their฀DVDs฀within฀about฀one฀business฀day฀following฀shipment. 2 0 0 4 ฀ A N N UA L ฀ R E P O R T Letter฀to฀Shareholders In฀our฀first฀annual฀report฀following฀our฀initial฀public฀offering฀฀ in฀2002฀-฀a฀year฀in฀which฀our฀revenues฀doubled...

  • Page 5
    ... Movies฀delivered฀at฀super spider฀speed. Spider-Man฀2฀has฀been฀rented฀by฀over฀600,000฀Netï¬, ฀ix฀customers฀and฀is฀one฀of฀ our฀top฀50฀movie฀rentals.฀Over฀450,000฀Netï¬, ฀ix฀customers฀have฀rated฀the฀movie,฀with฀ an฀average฀rating...

  • Page 6
    [ ฀R EASON S฀TO฀LOVE฀N ETF LI X฀] Custom฀recommendations, whatever฀your฀taste. Mike฀Myers฀as฀Austin฀Powers฀in฀Goldmember.฀Other฀Austin฀Powers฀movies฀available฀through฀ Netï¬,ix:฀International฀Man฀of฀Mystery฀and฀The฀Spy฀Who฀Shagged฀Me.฀...

  • Page 7
    ...they฀will฀enjoy.฀฀ As฀members฀rate฀movies,฀our฀technology฀creates฀a฀customized,฀personal฀site฀based฀on฀each฀member's฀movie฀tastes,฀ which฀makes฀our฀titles฀more฀relevant฀and฀accessible฀to฀each฀subscriber.฀We฀have฀over฀525฀million...

  • Page 8
    ...outrageously฀positive฀ word-of-mouth฀advertising.฀ And฀we฀continue฀to฀invest฀to฀provide฀greater฀value฀to฀our฀subscribers.฀Improvements฀in฀2004฀included฀the฀fourth-quarter฀launch฀of฀"Friends,"฀which฀allows฀ consumers฀to฀share฀movie฀ratings...

  • Page 9
    ...฀LOVE฀N ETF LI X฀] A฀monster movie฀selection. Boris฀Karloff฀as฀Frankenstein's฀monster.฀Netï¬,ix฀has฀23฀movies฀inspired฀by฀Mary฀Shelley's฀classic฀ book,฀everything฀from฀the฀1931฀Karloff฀original฀to฀a฀2004฀production฀whose฀cast฀includes...

  • Page 10
    ...,฀฀ in฀theatrical฀revenue.฀The฀other฀top฀five฀films฀are฀also฀all฀available฀through฀Netï¬,ix:฀Titanic฀(1),฀ Star฀Wars฀Episode฀IV฀(2),฀Shrek฀2฀(3),฀and฀Star฀Wars฀Episode฀I฀(5).฀But฀Netï¬,ix's฀top฀renting฀ title,฀Mystic฀River...

  • Page 11
    ...movies,฀allowing฀customers฀with฀the฀click฀of฀a฀button฀to฀share฀lists฀of฀their฀favorite฀movies,฀television฀ and฀other฀filmed฀entertainment฀with฀select฀family฀and฀friends.฀ family฀who฀are฀also฀Netï¬,ix฀subscribers.฀We฀think฀Friends...

  • Page 12
    ...฀in฀Internet฀delivery฀of฀movies.฀Our฀long-term฀ strategy฀has฀always฀been฀to฀seize฀leadership฀of฀that฀new฀market฀by฀building฀฀ a฀large฀subscriber฀base฀and฀offering฀those฀subscribers฀the฀choice฀of฀mail฀or฀ Internet฀delivery. We...

  • Page 13
    ...฀customers฀would฀recommend฀฀ ฀ Netï¬,ix฀to฀a฀friend 35,000 +฀ titles฀of฀movies,฀television฀and฀other฀filmed฀฀ ฀ entertainment฀ 200 +฀ genres ฀ 525,000,000 +฀ movie฀ratings 4,000,000 +฀ DVDs฀shipped฀per฀week 506฀ million฀in฀revenue...

  • Page 14
    Performance฀Measurements 2,610 $506 1,487 $272 857 456 $76 $153 $22 $7 Subscribers in฀thousands '01 '02 '03 '04 Revenue in฀millions '01 '02 '03 '04 Net฀Income฀(Loss) in฀millions '01 '02 '03 '04 $(21) $(39)

  • Page 15
    ... in Rule 12b-2 of the Act). Yes Í No ' As of June 30, 2004, the aggregate market value of voting stock held by non-affiliates of the registrant, based upon the closing sales price for the registrant's common stock, as reported in the NASDAQ National Market System, was $1,105,225,056. Shares of...

  • Page 16
    ... and Financial Statement Schedules ...43 Directors and Executive Officers of the Registrant ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and Related Transactions ...Principal Accountant Fees...

  • Page 17
    ...the same time with no due dates, late fees or shipping charges for $17.99 per month. In addition to our standard plan, we offer other service plans with different price points that allow subscribers to keep either fewer or more titles at the same time. Subscribers select titles at our Web site aided...

  • Page 18
    ... and pay-per-view services continue to offer a narrow selection of titles at specified times due to programming schedule constraints and technological issues relating to channel capacity. Traditional video rental outlets primarily offer new releases and devote limited space to display and stock back...

  • Page 19
    ... need for expensive retail outlets and allow us to service our large and expanding subscriber base from a network of low-cost shipping centers. We employ temporary, hourly and part-time workers to contain labor costs and provide maximum operating flexibility. Convenience, Selection and Fast Delivery...

  • Page 20
    ...address fields required to promote speedy and accurate delivery. Subscribers may pay for our service using a credit card, debit card or electronic check. We utilize third party services to authorize and process these payment methods. Throughout our Web site, we have extensive measurement and testing...

  • Page 21
    ... we help our subscribers quickly find titles they are more likely to enjoy. Ratings also determine which available titles are featured most prominently on our Web site to increase customer satisfaction and selection activity. Finally, data from our recommendation service is used to generate lists of...

  • Page 22
    ... of online subscription rental, the broad and deep selection of titles we offer subscribers, our ability to personalize our library to each subscriber based on the subscriber's selection history, personal ratings and the tastes and preferences of similar users through our recommendation service and...

  • Page 23
    .... Downloading of movies over the Internet is currently available from a limited number of providers, such as Movielink and CinemaNow, and typically involves delivery of content to a personal computer. We believe that our strategy of developing a large and growing subscriber base for DVD rentals and...

  • Page 24
    ... Lease Expiration Date Location Primary Use Los Gatos, California ...Beverly Hills, California ...Sunnyvale, California ... 66,400 4,000 115,000 October 2006 December 2006 April 2009 Corporate offices, general and administrative, marketing, and technology and development Content acquisition...

  • Page 25
    ... in California Superior Court, City and County of San Francisco. The complaint asserts claims of, among other things, false advertising, unfair and deceptive trade practices, breach of contract as well as claims relating to our statements regarding DVD delivery times. The complaint seeks restitution...

  • Page 26
    ... initial public offering on May 23, 2002. The following table sets forth the high and low sales prices per share of our common stock for the periods indicated, as reported by the NASDAQ National Market. 2003 High Low High 2004 Low First quarter ...Second quarter ...Third quarter ...Fourth quarter...

  • Page 27
    ......Sales ...Total revenues ...Cost of revenues: Subscription ...Sales ...Total cost of revenues ...Gross profit ...Operating expenses: Fulfillment ...Technology and development ...Marketing ...General and administrative ...Restructuring charges ...Stock-based compensation ...Total operating expenses...

  • Page 28
    ... plan of $17.99 per month allows subscribers to have up to three titles out at the same time with no due dates, late fees or shipping charges. Subscribers select titles at our Web site (www.netflix.com) aided by our proprietary recommendation service, receive them on DVD by U.S. mail and return...

  • Page 29
    ...to develop solutions for downloading movies to consumers. Our core strategy has been and remains to grow a large DVD subscription business; however, as technology and infrastructure develop to allow effective and convenient delivery of movies over the Internet, we intend to offer our subscribers the...

  • Page 30
    ... cost of revenues was $1.9 million higher, net income was $1.9 million lower and net income per diluted share was $0.03 lower for the year ended December 31, 2004. We will continue to periodically evaluate the useful lives and salvage values of our DVD library. Stock-Based Compensation We account...

  • Page 31
    ... offer other service plans with different price points that allow subscribers to keep either fewer or more titles at the same time. As of December 31, 2004, more than 95 percent of our paying subscribers paid $17.99 or more per month. Cost of Subscription Revenues: We acquire titles for our library...

  • Page 32
    ... assets related to equity instruments issued to certain studios in 2000 and 2001 and postage and packaging costs related to shipping titles to paying subscribers. Costs related to free-trial subscribers are allocated to marketing expenses. Revenue Sharing Expenses. Our revenue sharing agreements...

  • Page 33
    ...Marketing expenses consist of payroll and related expenses and advertising expenses. Advertising expenses include marketing program expenditures and other promotional activities, including revenue sharing expenses, postage and packaging expenses and library amortization related to free trial periods...

  • Page 34
    ...2003 2004 Revenues: Subscription ...Sales ...Total revenues ...Cost of revenues: Subscription ...Sales ...Total cost of revenues ...Gross profit ...Operating expenses: Fulfillment ...Technology and development ...Marketing ...General and administrative ...Stock-based compensation ...Total operating...

  • Page 35
    ... in a number of key areas, including increasing the in-stock rate and selection of titles as we expanded our DVD library and enhancing our Web site and recommendation service. We believe these improvements to our service increased subscriber satisfaction, which resulted in lower churn. • • We...

  • Page 36
    ...19 percent increase in monthly movie rentals per average paying subscriber. We believe the increase in monthly movie rentals was primarily attributable to the decrease in delivery time due to the expansion of our nationwide network of shipping centers. Postage and packaging expenses increased by $30...

  • Page 37
    ... increase in fulfillment expenses in absolute dollars in 2004 as compared to 2003 was primarily attributable to an increase in personnel-related costs resulting from the higher volume of activities in our customer service and shipping centers, coupled with an increase in credit card fees as a result...

  • Page 38
    ... increase in marketing expenses in absolute dollars in 2004 as compared to 2003 was primarily attributable to an increase in marketing program costs, primarily television and online advertising, to attract new subscribers. In addition, personnel-related costs increased in order to support the higher...

  • Page 39
    ... of the fully vested monthly stock option grants, coupled with a rising stock price. In addition, the increase was also attributable to higher compensation expenses associated with shares of common stock issued under our employee stock purchase plan. Interest and Other Income Year Ended December 31...

  • Page 40
    ... to, the number of subscribers who sign up for our service, the growth or reduction in our subscriber base, and our ability to develop new revenue sources. In addition, we may have to lower our prices and increase our marketing expenses in response to the aggressive competition from Blockbuster and...

  • Page 41
    ... the amortization of our DVD library as a result of increased purchases of titles during 2003, an increase in accounts payable as a result of our growing operations, an increase in deferred revenue due to a larger subscriber base and an increase in stock-based compensation expenses. This increase in...

  • Page 42
    ... on our operating results or financial position. In December 2004, the FASB issued SFAS No. 153, Exchanges of Nonmonetary Assets, which eliminates the exception for nonmonetary exchanges of similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do...

  • Page 43
    ... to attract a large number of subscribers who have traditionally used video retailers, video rental outlets, cable channels, such as HBO and Showtime, pay-per-view and VOD for in-home filmed entertainment. In addition, direct competition to our service, namely from services like Blockbuster Online...

  • Page 44
    ... centers which provides subscribers with fast delivery of their rented DVDs. We are continually enhancing our service in ways that may impact subscriber movie usage. Such improvements include new product features on our Website as well as software and process upgrades. In addition, demand for titles...

  • Page 45
    ... incentive-based and fixed-cost marketing programs to promote our service to potential new subscribers. We obtain a large portion of our new subscribers through our online marketing efforts, including third party banner ads, pop-under placements, direct links and permission-based e-mails as well as...

  • Page 46
    ... support offered by studios; our ability to maintain, upgrade and develop our Web site, our internal computer systems and our fulfillment processes and efficiently utilize our shipping centers; fluctuations in consumer spending on DVD players, DVDs and related products; fluctuations in the use...

  • Page 47
    ...of value to our subscribers. If we are unable to maintain and enhance our technology to manage the processing of DVDs among our shipping centers in a timely and efficient manner, our ability to retain existing subscribers and to add new subscribers may be impaired. If we experience delivery problems...

  • Page 48
    ... adoption of DVD players, and if such adoption slows, our subscriber growth may also slow. We depend on studios to release titles on DVD for an exclusive time period following theatrical release. Our ability to attract and retain subscribers is related to our ability to offer new releases of filmed...

  • Page 49
    ... to being available from a small number of cable providers, VOD has been introduced over the Internet, as high-speed Internet access has greatly increased the speed and quality of viewing content, including feature-length movies, on personal computers. In addition, other technologies have been...

  • Page 50
    ... Web site or in our computer systems could result in a loss of subscribers. Subscribers and potential subscribers access our service through our Web site, where the title selection process is integrated with our delivery processing systems and software. Our reputation and ability to attract, retain...

  • Page 51
    ... our operating expenses and adversely affect our results of operations. Our subscribers pay for our subscription services predominately using credit cards, debit cards and electronic checks. Our acceptance of these payment methods requires our payment of certain fees. From time to time, these...

  • Page 52
    ... to attract subscribers may be adversely affected. Intellectual property claims against us could be costly and result in the loss of significant rights related to, among other things, our Web site, our recommendation service, title selection processes and marketing activities. Trademark, copyright...

  • Page 53
    ... for many potential subscribers due to inadequate development of network infrastructure and enabling technologies that address consumer concerns about network performance; security; reliability; speed of access; Ease of use; and • bandwidth availability. The Internet has experienced a variety...

  • Page 54
    ...of our management's time and attention, and could negatively affect our business operations and financial position. Recently enacted changes in securities laws and regulations have increased and may continue to increase our costs. Recently enacted changes in the laws and regulations affecting public...

  • Page 55
    ... analysts, investors and the financial community; announcements of developments affecting our business, systems or expansion plans by us or others; Competition, including the introduction of new competitors, their pricing strategies and services; market volatility in general; and the operating...

  • Page 56
    ... result of our growth, our limited operating history and the changing competitive landscape it is difficult to accurately forecast our revenues, gross margin, operating expenses, number of paying subscribers, number of DVDs shipped per day and other financial and operating data. Our inability or the...

  • Page 57
    Our independent registered public accounting firm audited the financial statements included in this Annual Report on Form 10-K and has issued an audit report on management's assessment of our internal control over financial reporting. This report appears on page F-3 of this Annual Report on Form 10...

  • Page 58
    ... Management and Related Stockholder Matters Information required by this item is incorporated by reference from information contained under the sections "Security Ownership of Certain Beneficial Owners and Management" and "Equity Compensation Plan Information" in our Proxy Statement for the Annual...

  • Page 59
    ... officers and directors 2002 Employee Stock Purchase Plan Amended and Restated 1997 Stock Plan 2002 Stock Plan Amended and Restated Stockholders' Rights Agreement Office Lease between the registrant and BR3 Partners Lease Agreement with Lincoln-Recp Oakland Opco, LLC, as amended Employment Offer...

  • Page 60
    ... Home Video Strategic Marketing Agreement between the registrant and Best Buy Co., as amended Lease between Sobrato Land Holdings and Netflix, Inc. Lease between Sobrato Interests II and Netflix, Inc Consent of Independent Registered Public Accounting Firm Certification of Chief Executive Officer...

  • Page 61
    NETFLIX, INC. INDEX TO FINANCIAL STATEMENTS Page Reports of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets as of December 31, 2003 and 2004 ...Consolidated Statements of Operations for the Years Ended December 31, 2002, 2003 and 2004 ...Consolidated Statements of ...

  • Page 62
    ... of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the...

  • Page 63
    ... on the effectiveness of the internal control over financial reporting of Netflix, Inc. based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain...

  • Page 64
    ...Prepaid expenses ...Prepaid revenue sharing expenses ...Other current assets ...Total current assets ...DVD library, net ...Intangible assets, net ...Property and equipment, net ...Deposits ...Other assets ...Total assets ...Liabilities and Stockholders' Equity Current liabilities: Accounts payable...

  • Page 65
    ... 2004 Revenues: Subscription ...Sales ...Total revenues ...Cost of revenues: Subscription ...Sales ...Total cost of revenues ...Gross profit Operating expenses: Fulfillment* ...Technology and development* ...Marketing* ...General and administrative* ...Stock-based compensation ...Total operating...

  • Page 66
    ... losses on available-for-sale securities ...Comprehensive income ...Exercise of options ...Issuance of common stock under employee stock purchase plan ...Issuance of common stock upon exercise of warrants ...Deferred stock-based compensation, net ...Stock-based compensation expense ...Balances...

  • Page 67
    ... Amortization of DVD library ...17,417 43,125 80,346 Amortization of intangible assets ...3,141 3,146 1,987 Non-cash charges for equity instruments granted to non-employees ...40 - - Stock-based compensation expense ...8,832 10,719 16,587 Stock option income tax benefits ...- - 176 Loss on disposal...

  • Page 68
    ... plan, the Company offers other service plans with different price points that allow subscribers to keep either fewer or more titles at the same time. Subscribers select titles at the Company's Web site aided by its proprietary recommendation service, receive them on DVD by U.S. mail and return...

  • Page 69
    ...December 31, 2004, other assets included restricted cash of $1,000 related to a workers' compensation insurance deposit. Short-Term Investments The Company's short-term investments are classified as available-for-sale and are recorded at fair market value. Net unrealized gains (losses) are reflected...

  • Page 70
    ... assets related to equity instruments issued to studios, and postage and packaging expenses related to DVDs provided to paying subscribers. Revenue sharing expenses are recorded as DVDs subject to revenue sharing agreements are shipped to subscribers. Cost of DVD sales include the net book value...

  • Page 71
    ...DVD library. Fulfillment expenses also include credit card fees. Technology and Development Technology and development expenses consist of payroll and related costs incurred in testing, maintaining and modifying the Company's Web Site, its recommendation service, developing solutions for downloading...

  • Page 72
    ... of excluded outstanding stock options was $1.49, $17.03 and $30.71 for the years ended December 31, 2002, 2003 and 2004, respectively. The weighted average exercise price of the excluded warrants was $1.61 for the year ended December 31, 2002. Segment Reporting The Company is an online movie rental...

  • Page 73
    ...No. 25, Accounting for Stock-based compensation. This Standard requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. This eliminates the exception to account for such awards using the...

  • Page 74
    NETFLIX, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (in thousands, except share, per share and percentages) adopted the fair value recognition provisions of SFAS No. 123, Accounting for Stock-Based Compensation, in the second quarter of 2003, and restated prior periods at that time....

  • Page 75
    ... Web site and the Company's Web site over a period of 24 months. In addition, the Company is allowed to use the partner's trademark and logo in marketing the Company's subscription services. The Company recognized the fair value of these instruments as intangible assets with a corresponding credit...

  • Page 76
    ... of capitalized software development costs totaled $4,174 and $5,408 as of December 31, 2003 and 2004, respectively. Accrued Expenses Accrued expenses consisted of the following: As of December 31, 2003 2004 Accrued state sales and use tax ...Employee benefits ...Other ...Total accrued expenses...

  • Page 77
    ...the closing of the initial public offering in May 2002. As of December 31, 2003 and 2004, warrants to purchase 44,298 shares of the Company's common stock remained outstanding. In November 2000, in connection with an operating lease, the Company issued a warrant that provided the lessor the right to...

  • Page 78
    ...no warrants were outstanding in connection with the integration and distribution agreement. The Company calculated the fair value of the warrants using the Black-Scholes valuation model with the following assumptions: the terms of the warrants ranging from 4 to 10 years; risk-free rates between 4.92...

  • Page 79
    ... Company in California Superior Court, City and County of San Francisco. The complaint asserts claims of, among other things, false advertising, unfair and deceptive trade practices, breach of contract as well as claims relating to the Company's statements regarding DVD delivery times. The complaint...

  • Page 80
    ... (Deficit) Equity Initial Public Offering On May 29, 2002, the Company closed the sale of 11,000,000 shares of common stock and on June 14, 2002, the Company closed the sale of an additional 1,650,000 shares of common stock in an initial public offering at a price of $7.50 per share. A total of $94...

  • Page 81
    ... such other amount as the Company's Board of Directors may determine. Under the 2002 Employee Stock Purchase Plan, shares of the Company's common stock may be purchased over an offering period with a maximum duration of two years at 85 percent of the lower of the fair market value on the first day...

  • Page 82
    NETFLIX, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (in thousands, except share, per share and percentages) addition, the Company's 2002 Stock Plan provides for annual increases in the number of shares available for issuance on the first day of each year, beginning with 2003, equal ...

  • Page 83
    ...-value method prior to the Company's initial public offering in May 2002. The fair value of employee stock options granted after the initial public offering, as well as the fair value of shares issued under the employee stock purchase plan, was estimated using the Black-Scholes option pricing model...

  • Page 84
    ... per share, respectively. 9. Income Taxes The provision for income tax expense consists of the following: Year Ended December 31, 2002 2003 2004 Currently payable Federal ...State ...Total current ...Amounts credited to equity for realized benefit of additional tax stock option deductions ...Total...

  • Page 85
    ...operating loss carryforwards expire beginning in 2005 to 2013, if not previously utilized. As of December 31, 2004, approximately $2,903 of the valuation allowance related to benefits of excess tax deductions for stock options which will be credited to equity when realized. 10. Employee Benefit Plan...

  • Page 86
    ...) March 31 Quarter Ended June 30 September 30 December 31 2003 Total revenues ...Gross profit ...Net income (loss) ...Net income (loss) per share (1): Basic ...Diluted ...Subscribers at end of period ...2004 Total revenues ...Gross profit ...Net income (loss) ...Net income (loss) per share: Basic...

  • Page 87
    ...may lawfully do or cause to be done by virtue thereof. Pursuant to the requirements of the Securities and Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title...

  • Page 88
    ... officers and directors 2002 Employee Stock Purchase Plan Amended and Restated 1997 Stock Plan 2002 Stock Plan Amended and Restated Stockholders' Rights Agreement Office Lease between the registrant and BR3 Partners Lease Agreement with Lincoln-Recp Oakland Opco, LLC, as amended Employment Offer...

  • Page 89
    ... by Reference File No. Exhibit Filing Date Filed Herewith 23.1 31.1 Consent of Independent Registered Public Accounting Firm Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Certification of Chief Financial Officer Pursuant to Section 302 of the...

  • Page 90
    ... the related consolidated statements of operations, stockholders' (deficit) equity and comprehensive income (loss), and cash flows for each of the years in the three-year period ended December 31, 2004, management's assessment of the effectiveness of internal control over financial reporting as of...

  • Page 91
    ... in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who...

  • Page 92
    ... in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who...

  • Page 93
    ...for the year ended December 31, 2004 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Netflix, Inc. Dated...

  • Page 94
    ....com Stock฀Listing Netï¬,ix,฀Inc.฀common฀stock฀trades฀ on฀the฀Nasdaq฀Stock฀Market฀ under฀the฀symbol฀NFLX. Investor฀Relations For฀additional฀copies฀of฀this฀report฀ or฀other฀financial฀information: URL:฀http://ir.netï¬,ix.com฀ Email:฀ir...

  • Page 95
    What's฀in฀your฀queue? Netï¬,ix,฀Inc. 970฀University฀Avenue Los฀Gatos,฀CA฀95032 www.netï¬,ix.com