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Netflix Passes 10 Million Subscribers, With 600,000 Net Additions Since the First of the Year

Posted on: Thursday, 12 February 2009, 07:30 CST

LOS GATOS, Calif., Feb. 12 /PRNewswire/ -- Netflix, Inc. (Nasdaq: NFLX), the world's largest online movie rental service, today announced it has surpassed 10 million subscribers, a milestone that reflects the widespread and growing appeal of the company's service. For one low monthly price, Netflix members can get unlimited DVDs delivered to their homes quickly and can instantly watch unlimited movies and TV episodes streamed over the internet to their TVs and computers.

In crossing the 10 million subscriber threshold last night, Netflix has added more than 600,000 net subscribers since January 1. The company recently reported having surpassed nine million subscribers in the fourth quarter of 2008 and having ended the year with 9.4 million subscribers.

The company attributed the recent surge in subscribers to growing consumer recognition of the value and convenience offered by Netflix and increasingly more ways to instantly watch a growing library of movies and TV episodes from Netflix on PCs, Intel-based Macs and TVs. Netflix ready devices now include the Roku digital video player, Blu-ray disc players from LG Electronics and Samsung, Microsoft's Xbox 360 game console and newer models of TiVo DVRs.

"Ten million subscribers is a symbolic but meaningful achievement for our company," said Reed Hastings, Netflix co-founder and CEO. "From a subscriber standpoint, Netflix is singularly focused on making movie enjoyment easy, and we'll strive to deliver on that promise in added and improved ways in the years to come."

Since the Netflix subscription service was launched in September 1999, it has added subscribers at an average annual rate of nearly 30 percent. Over that time, the company has been consistently recognized as a leader in customer satisfaction in Internet commerce. For eight straight surveys, Netflix has been independently rated the number one customer experience on the Web by the Ann Arbor, Mich., research firm ForeSee Results.

In announcing it has surpassed 10 million subscribers, Netflix today reiterated the guidance it provided to investors on January 26, including the guidance for first quarter ending subscribers of 10.1 million to 10.3 million subscribers and full-year ending subscribers of 10.6 to 11.3 million subscribers.

About Netflix

Netflix, Inc. is the world's largest online movie rental service, with more than 10 million subscribers. For one low monthly price, Netflix subscribers can get DVDs delivered to their homes and can instantly watch movies and TV episodes streamed to their TVs and computers, all in unlimited amounts. Subscribers can choose from over 100,000 DVD titles and a growing library of more than 12,000 choices that can be watched instantly. There are never any due dates or late fees. DVDs are delivered free to subscribers by first class mail, with a postage-paid return envelope, from 58 distribution centers. More than 97 percent of Netflix subscribers live in areas that generally receive shipments in one business day. Netflix has partnered with leading consumer electronics companies to offer a range of devices that can instantly stream movies and TV episodes to members' TVs from Netflix. For more information, visit http://www.netflix.com.

Forward looking statement

This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding previously announced guidance. The forward-looking statements in this release are subject to risks and uncertainties that could cause actual results and events to differ, including, without limitation: our ability to attract new subscribers and retain existing subscribers, especially in the current uncertain economic environment; our ability to manage our subscriber acquisition cost as well as the cost of content delivered to our subscribers; fluctuations in consumer usage of our service; the deterioration of the U.S. economy and its affect on online commerce or the filmed entertainment industry; conditions that effect our delivery through the U.S. Postal Service, including regulatory changes and postal rate increases; changes in the costs of acquiring DVDs or electronic content; customer spending on DVDs and related products; disruption in service on our website or with our computer systems; competition and widespread consumer adoption of different modes of viewing in- home filmed entertainment. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2008. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

SOURCE Netflix, Inc.

Source: PR Newswire

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