netfli hoovers

Netflix, Inc. Profile

100 Winchester Cir.Los Gatos, CA 95032 United StatesPhone : 408-540-3700Fax : 408-540-3737http://www.netflix.com

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PAGE iMar 05, 2011• •866-541-3770 HOOVERS.COM

Table of Contents1Company Overview

Key Information 1

Key Financials 1

Company Rankings 1

Key People 2

3Company Description

4Industry Information

5People

People 6

Board Members 8

8Biographies

Reed Hastings 9

Neil Hunt 9

Leslie J. Kilgore 10

Patricia J. (Patty) McCord 11

Andrew (Andy) Rendich 12

Ted Sarandos 13

13Company Financials

Financial Summary 13

Annual Income Statement 14

Quarterly Income Statement 15

Annual Balance Sheet 16

Quarterly Balance Sheet 17

Annual Cash Flow 18

Quarterly Cash Flow 19

Earnings Estimates 20

Financial Market Data 21

Historical Financials 22

23Competition

Competitors List 23

Competitive Landscape 24

PAGE iiMar 05, 2011• •866-541-3770 HOOVERS.COM

Company Overview100 Winchester Cir.Los Gatos, CA 95032 United StatesPhone : 408-540-3700Fax : 408-540-3737http://www.netflix.com

In a blend of technologies from multiple eras, Netflix steers couch potatoes away from the video store and straightto the mailbox or PC. Its website (Netflix.com) offers DVD rentals to more than 20 million subscribers for amonthly fee. Movies are delivered to customers via the US Postal Service or streamed to PCs or TVs. Netflix shipssome 2 million discs daily in the US. It does not charge late fees or have due dates, and its service employs userratings to predict individual preferences and make recommendations. Netflix boasts distribution centers in majorUS cities. An agreement with TiVo allows TiVo customers with certain DVR models to tap an online Netflix libraryof some 12,000 movies and TV shows.

Key InformationDUNS Number 799646716Location Type HeadquartersSubsidiary Status NoManufacturer NoCompany Type PublicPlant/Facility Size (sq. ft.) 165,000.00Owns/Rents OwnsForeign Trade ImportsAccountant KPMG LLPTotal Employees 4,3291-Year Employee Growth 6.10%Employees At This Location 166Year of Founding or Change in Control 1997Primary Industry 1542:Music, Video, Book & Entertainment RetailPrimary SIC Code 78410000:Video tape rentalPrimary NAICS Code 532230:Video Tape and Disc RentalLatitude/Longitude 37.23883 / -121.95539

Key FinancialsFiscal Year-End DecemberSales ($ M) $2,162.63M1-Year Sales Growth 29.48%Net Income $160.85M1-Year Net Income Growth 38.83%Total Assets $982.07MMarket Value $11,145.19M

Prescreen Score Low Risk

Company RankingsS&P 50051 in FORTUNE's Fastest-Growing Companies

PAGE 1Mar 05, 2011• •866-541-3770 HOOVERS.COM

Key People

Name Title

Mr. Reed Hastings Chairman, President, and CEO

Mr. David Wells CFO

Mr. Neil Hunt Chief Product Officer

Ms. Leslie J. Kilgore Chief Marketing Officer

Ms. Patricia J. (Patty) McCord Chief Talent Officer

Mr. Andrew (Andy) Rendich Chief Service and DVD Operations Officer

Mr. Ted Sarandos Chief Content Officer

JC Berger VP and Controller

Ms. Deborah Crawford VP Investor Relations

Ms. Cindy Holland VP Content Acquisition


Company Description

The TiVo deal is an example of how movie rental is migrating from the mailbox to the set-top box or personalcomputer. By bypassing the post office, Netflix customers have instant access to movies and TV episodes foronline viewing. Netflix was an early entrant in the evolving world of Internet video. Its streaming service, launchedin 2007, allows customers to watch select movies and content on the Netflix website via their PCs. Looking toexpand its library of available selections to satisfy the growing appetites of its customers, Netflix has addedcontent from CBS, Disney, MTV Networks, and Sony. In 2011 it continues to explore agreements with pay TVchannels and networks, such as HBO, as it plans to invest aggressively in streaming content. Also, Netflix isexpanding its online streaming service internationally -- one country at a time. What is fueling the company'ssubscriber growth in 2011 is its push for $9.99-per-month subscriptions (for one DVD at a time plus streamingcapabilities) and $7.99-per-month pure streaming plans, expansion into Canada with pure streaming, and theability to tap into the now more than a couple hundred Netflix-ready devices on the market.Building on this service, the DVD rental company, in partnership with Roku, launched a set-top box that allowssubscribers to stream videos from the Netflix website to their TVs. The Netflix box is the first of several devices topipe Netflix's streaming service to TV sets. Netflix also is able to stream movies to LG Electronics' Blu-ray DVDplayers and VIZIO TVs. The company racked up similar content-delivery deals for TiVo digital video recorders,Microsoft Xbox 360 and Sony PlayStation 3 game consoles, Samsung Blu-ray players, and Sony's BRAVIA InternetVideo-capable HDTVs.The recession in the US helped Netflix sign up many new subscribers as more Americans looked to movies forescapism and stayed at home to save money. As a result, Netflix enlisted more than 3 million new subscribersduring 2010 while lowering its subscriber acquisition and service costs.Since its founding in 1997 by its chairman and CEO Reed Hastings, Netflix has been battling rival Blockbuster,which started up its own online rental offerings in 2006. Netflix saw its growth slow in 2007, which it attributes inpart to Blockbuster's aggressive expansion of its online rental business. While Blockbuster's 2010 Chapter 11bankruptcy filing may ultimately be a plus for Netflix, the company is facing new competitors, including Apple,Amazon.com, and Google, as a result of the shift to online movie downloads.In addition, Netflix faces other potential rivals that offer DVD rentals in Europe and online downloads of movies.Competition from Redbox, which operates DVD-rental kiosks, began to heat up as long ago as 2009. Redbox's $1DVD rentals and aggressive expansion has Netflix watching its back and proclaiming that kiosks will be its #1competitor. In turn, Netflix relaunched an ad campaign to offer $8.99 unlimited monthly DVD rentals. Redboxplaces its vending-machine-like kiosks outside convenient locales, such as grocery stores, discount stores, andubiquitous fast-food restaurants such as McDonald's. Redbox, however, is limited to 200 titles per kiosk andprimarily only recent releases.While one would think that Netflix generates more of its revenue from sales of recently released movies, thecompany uses its recommendation technology to keep the DVD shipments humming and a greater number of itsolder DVDs in circulation. In 2009 about 70% of the DVDs shipped were titles with release dates of greater than 13weeks. Netflix is able to increase demand for older titles that are sitting in its distribution centers byrecommending movies to users as they rate movies seen. Netflix also has leveraged its subscriber base by allowingcompanies to place ads in Netflix e-mails and on its signature red mailing envelopes.


Industry InformationHoover's Industries

> Retail

> Music, Video, Book & Entertainment Retail ( primary)> Nonstore Retail

> Internet Retail> Media

> Internet Content Providers

Denotes In-depth Industry Insight by Hoover's Editorial Staff

Primary SIC Code78410000 : Video tape rentalPrimary NAICS Code532230 : Video Tape and Disc Rental


People

Employees

Name Age SalaryTitle Bonus

Mr. Reed Hastings $1,000,000.00 --50Chairman, President, and CEOMr. David Wells -- --CFOMr. Neil Hunt $800,000.00 --49Chief Product OfficerMs. Leslie J. Kilgore $750,000.00 --45Chief Marketing OfficerMs. Patricia J. (Patty)McCord

-- --57Chief Talent Officer

Mr. Andrew (Andy) Rendich -- --42Chief Service and DVD OperationsOfficer

Mr. Ted Sarandos $900,000.00 --46Chief Content OfficerJC Berger -- --VP and ControllerMs. Deborah Crawford -- --VP Investor RelationsMs. Cindy Holland -- --VP Content AcquisitionMs. Lisa Nishimura -- --VP Content AcquisitionMr. Ken Ross -- --VP CommunicationsMs. Erin Ruane -- --VP Content AcquisitionMr. Steve Swasey -- --VP Corporate CommunicationsMr. David Hyman -- --General CounselMr. Richard N. (Rich)Barton

-- --43Director

Mr. A. George (Skip) Battle -- --67DirectorMr. Charles H. (Charlie)Giancarlo

-- --Director

Mr. Timothy M. (Tim) Haley -- --56DirectorMr. Jay C. Hoag -- --51DirectorMs. Ann Mather -- --49DirectorLee Hall -- --Regional ManagerBrent Wickens -- --Regional ManagerAndy Atkins -- --Director EngineeringJim Bobowski -- --Director-online Partner MarketingGeorge Bruder -- --Director Of Encoding Engineering

And OperationsKatie Bush -- --Art Director/senior UxdDeborah Crawford -- --Director - Investor Relations; Public

Relations ManagerJeff Egger -- --Director Content AcquisitionsBarry Enderwick -- --Creative DirectorPauline Fischer -- --Director Content Acquisition


Name Age SalaryTitle Bonus

Ken Florance -- --Director, Content Delivery;Information Technology Director

Bryony Gagan -- --Director Business And Legal AffairsMichael Hart -- --Director Of Engineering Api And

CommunityGautam Kotwal -- --Director-test EngineeringC S Lewis -- --Senior DirectorMatt Marenghi -- --Director Engineering-interactive TvKelly Merryman -- --Director Content AcquisitionLisa Mesh -- --Director, Product PlanningEddie Ogihara -- --Director Of ComplianceAroon Ramadoss -- --Director, Engineering For Business

Applications; Senior SoftwareEngineer

Renee Rodriguez -- --Director Of Technical AccountingAnd Sec Reporting

Jon Sanders -- --Director CinematchEva Tse -- --Director Data EngineeringJennifer Anderson -- --Senior Accounting Manager ContentSaldy Antony -- --Manager Instant StreamingBrad Christofferson -- --Manager Storage Engineering;

Manager, Engineering; SeniorUnix/san System Administrator

Warren Curry -- --Site Content CoordinatorLaurent De Segur -- --Senior ManagerJason Donadio -- --Corporate Accounting Manager


Board Members

Name AgeTitle

Mr. Reed Hastings 50Chairman, President, and CEO

Mr. Richard N. (Rich) Barton 43Director

Mr. A. George (Skip) Battle 67Director

Mr. Charles H. (Charlie) GiancarloDirector

Mr. Timothy M. (Tim) Haley 56Director

Mr. Jay C. Hoag 51Director

Ms. Ann Mather 49Director


BiographiesReed Hastings, Age 50

Current Company TitlesUnknown - Present : Chairman, President, and CEO

Current Company Compensation HistorySalary Bonus Total

$1,000,000.00 --2009 : $2,756,268.00

$994,231.00 --2008 : $2,760,854.00

$850,000.00 --2007 : --

$500,000.00 --2006 : --

$136,154.00 --2004 : --

$224,615.00 --2003 : --

$229,762.00 --2002 : --

$13,800.00 --2001 : --

Other Company AffiliationsDirector, Microsoft Corporation

Biography

Source : Company Web Site, 2010

Reed Hastings co-founded Netflix in 1997 and launched the subscription service in 1999. Netflixgrew to one million subscribers in less than four years, and reached 12.3 million subscribers bythe end of 2009. In nine out of ten surveys since 2005 Netflix has been ranked number one incustomer satisfaction across all of ecommerce by independent researcher ForeSee Results. In2010, the American Customer Satisfaction Index (ASCI) ranked Netflix number one forcustomer satisfaction among all e-retail, e-brokerage and e-travel sites. In the fall of 2005,Netflix was the winner of Fast Company's national Customers First Award, with Reed appearingon the cover of the October issue. Also in 2005, Time magazine added Reed to its "Time 100"list of the 100 most influential global citizens. Newsweek wrote that "Netflix revolutionized theway we watch movies." In March 2010, Barron¿s included Reed among its 30 most respectedCEOs of the year. In March 2007 Reed was appointed to Microsoft Corp.¿s board of directorsand he was inducted into the Video Business Hall of Fame in December. Earlier in his career,Reed founded Pure Software, which he built into one of the world¿s 50 largest public softwarecompanies. After a successful public offering and a number of acquisitions, Pure was acquiredby Rational Software in 1997. Reed is an active educational philanthropist and board member ofmany non-profits. In addition, he was President of the California State Board of Education from2000 to 2004. He has led successful statewide political campaigns for more charter publicschools and easier passage of local school bonds. Reed received a BA from Bowdoin College in1983 and an MSCS degree from Stanford University in 1988. He holds several patents. BetweenBowdoin and Stanford, Reed served in the U.S. Peace Corps as a high school math teacher inSwaziland.

Neil Hunt, Age 49

Title held since 1999 : Chief Product Officer


Current Company Titles1999 - Present : Chief Product Officer


$800,000.00 --2009 : $1,510,006.00

$795,000.00 --2008 : $1,507,164.00

$670,000.00 --2007 : --

Biography


Hunt has served as Netflix Chief Product Officer since 1999. Neil leads the Web sitedevelopment team that has designed and continuously improves the Netflix site, which hasbeen ranked nine out of 10 times by ForeSee Results as the #1 rated Web site for customersatisfaction. Neil's focus on customization and personalization ensures every Netflix member aunique experience every time they visit the site. This includes the movies they see on eachpage, the recommendations they receive on movies, and the critical account management toolsthey use, such as their dynamic queue to order movies. Proprietary, algorithmically-drivensoftware provides the service and competitive differentiation that have made Netflix one of themost prominent and admired brands on the Internet and has helped revolutionize the wayconsumers make home entertainment choices. On an average day the site facilitates about twomillion Queue adds and processes more than two million movie ratings. Neil is an accomplishedscientist who excels at leading development teams to create powerful software that is reliableand easy to use. He honed that ability through research at Palo Alto laboratories and a decadein the software industry. Beginning in 1991, Neil was responsible for the architecture andevolution of Purify and other developer tools for Pure Software while Netflix CEO ReedHastings was its chief executive. Rational Software Corp. acquired the firm in 1997. Neil thenserved as director of engineering for Rational, managing development of TeamTest, TestStudio,Visual Test and other software testing tools. Neil earned his doctorate in computer sciencefrom the University of Aberdeen, U.K., in 1986. During and afterward, he conducted research inseveral Palo Alto corporate laboratories. He has a bachelor's degree from the University ofDurham, U.K.

Leslie J. Kilgore, Age 45

Title held since 2000 : Chief Marketing Officer

Current Company Titles2000 - Present : Chief Marketing Officer


$750,000.00 --2009 : $2,074,568.00

$748,077.00 --2008 : $2,089,703.00

$700,000.00 --2007 : --

$650,000.00 --2006 : --


Salary Bonus Total

$503,846.00 --2004 : --

$315,539.00 --2003 : --

$217,692.00 --2002 : --

$190,000.00 --2001 : --

Other Company AffiliationsDirector, LinkedIn Corporation

Biography


Leslie Kilgore has served as chief marketing officer at Netflix since 2000. Leslie came to thecompany with more than a decade of consumer products and e-commerce marketingexperience at premier brands in packaged goods and online retailing. She believes that successresults when superior products and superior value are offered to the consumer and has madethis the underpinning of her career. Rapid, cost-effective subscriber acquisition is Leslie'sprincipal mission at Netflix. During her tenure, she has grown the Netflix subscriber base fromfewer than 100,000 to 12.3 million by the end of 2009. Since Leslie joined the company, Netflixhas evolved from a Bay Area phenomenon to a nationally distributed service ranked nine out of10 times since 2005 as the #1 online retailer for customer satisfaction by independentresearchers ForeSee Results and FGI Research. In January 2007 Netflix was named Innovatorof the Year for 2006 by the National Retail Federation and in October 2005 Fast Companymagazine named Netflix the #1 customer experience in American business. Knowing when toengage marketing channels based on the careful balance of cost and reach has been critical togrowing membership both exponentially and profitably. Beginning first with online advertisingand public relations designed to build off of the virulent enthusiasm of Netflix members and nowincluding national TV advertising, her efforts have sought to evangelize a better, moreconvenient and more cost effective way to rent movies. The success of these efforts areunderscored by the fact that more than 90 percent of trial members convert to payingsubscribers and more than 90 percent of those tell family and friends about the service. As abrand manager for The Procter & Gamble Co. from 1992 to 1999, Leslie oversaw the $600million Pantene and the $150 million Head and Shoulders brands. From 1999 to mid-2000, sheserved as director of marketing for Amazon.com ¿ responsible for increasing the size, loyaltyand profitability of the customer base ¿ during a time in which online retailing enjoyed explosivegrowth and established itself as a mainstream consumer channel. Leslie has a Master's degreefrom the Stanford University Graduate School of Business and a Bachelor's degree from TheWharton School of Business at the University of Pennsylvania.

Patricia J. (Patty) McCord, Age 57

Title held since 1998 : Chief Talent Officer

Current Company Titles1998 - Present : Chief Talent Officer

Biography



Patty McCord has served as Netflix Chief Talent Officer since 1998. Patty manages Netflix'sunique corporate culture, whose motto is "smart people, hard problems" and has a seeminglydisproportionate ratio of corporate employees (about 500) to total revenue (more than $1.6billion at the end of 2009). Under Patty's leadership, Netflix attracts and retains a dynamic,high performance workforce dedicated to superior customer experience, which has propelledthe company to be being named by ForeSee Results as the #1 Web site for customersatisfaction in nine out of 10 surveys since 2005. Patty believes that deftly managing the talentmix at Netflix is paramount to the success of the company. To ensure that she has the right mixof people at Netflix, Patty often asks, "Is what you love doing and what you're extraordinary atsomething Netflix needs someone to be great at?" Acknowledging the value of combining dataand values, Patty expects each employee to understand the key business objectives and relatethem to their own work. Metrics are at the core of every department, from customer acquisitionto number of discs shipped to customer demographics. While Patty's department serves as aconduit for communications between employees and management, she is adamant aboutkeeping a lean organization in which openness, approachability and honesty are valued aboveall else. Patty has more than 17 years of experience in human resources with high-techcompanies in the Silicon Valley. Prior to joining Netflix, Patty served as a consultant to variousstart-ups as a principal of Patty McCord Consulting. From 1994 to 1997, she served as directorof human resources at Pure Atria, now Rational Software Corporation, where she managed allhuman resources functions and directed all management development programs. From 1992 to1994, Patty was human resources manager at Borland International, where she implemented arecruitment strategy to double the engineering staff in one year. Prior to Borland she worked atSun Microsystems where she started the Diversity Programs Department.

Andrew (Andy) Rendich, Age 42

Title held since 2009 : Chief Service and DVD Operations Officer

Current Company Titles2009 - Present : Chief Service and DVD Operations Officer

2007 - 2009 : VP Operations

Biography

Andrew Rendich has been with Netflix Inc., based in Los Gatos, Calif., since 1999, rising to headof operations after serving in a variety of roles ranging from engineering services to executivemanagement. Since early 2007, Andrew has served as Vice President of Operations in chargeof Operations Engineering, Shipping and Receiving, and Customer Service. He oversees morethan 2,500 employees, including company officers, directors, managers and hourly associatesin 59 shipping and fulfillment centers nationwide and a national call center in Hillsboro, Oregon.Andrew¿s primary focus is to constantly improve the company¿s DVD rental service throughreducing service errors, such as late shipments and unplayable discs, and lowering costs byreducing scrap discs and optimizing direct labor. From 2003 to 2007 Andrew served as VicePresident of Systems Development at Netflix, which included the development of all systemsrelated to the DVD service, ERP, Customer Service and Content Purchasing. Andrew also playeda key role in developing the automation that drives the company's DVD service. Key focuseswere developing and leading a team of world-class engineers, developing a logistics system thathas a very high transactional rate in a short period of time while keeping the systems highly



reliable, available and cost effective. During Andrew¿s tenure at Netflix, daily DVD shipmentshave grown from a few thousand to more than 2 million. Andrew has overseen the developmentof automation that speeds up the shipping process, replacing legacy processes that inserted650 DVDs into a mailer per hour with automation that inserts more than 4,000 an hour, forexample. Andrew also oversees the company¿s liaison with the United States Postal Service,with which Netflix spends more than $450 million annually to deliver its iconic red envelopes.Prior to joining Netflix, Andrew spent eight years in engineering management and softwaredevelopment. He was Director of Engineering at Verax Systems in Rochester NY for five yearswhere he oversaw the development of the company¿s PC-based statistical process controlsoftware and development of proprietary micro-processor control data collection devices.Andrew has degrees in Computer Engineering and Computer Science from RIT and Alfred State.He lives in San Ramon, California with his wife and children.

Ted Sarandos, Age 46

Current Company TitlesUnknown - Present : Chief Content Officer


$900,000.00 --2009 : $1,089,714.00

$896,538.00 --2008 : $1,087,532.00

$810,000.00 --2007 : --

Biography

Ted Sarandos has led content acquisition for Netflix since 2000. With more than 20 years'experience in home entertainment, Ted is recognized in the industry as an innovator in filmacquisition and distribution. Ted oversees the Beverly Hills office of Netflix with a staff of 75people who manage the company's content acquisition through relationships with studios,networks, film makers and producers. As Netflix has grown to 12.3 million subscribers by theend of 2009, Ted has established Netflix as a successful film distributor within theentertainment industry. During Ted's tenure, the Netflix library has increased from 2,000 to100,000 titles on DVD and more than 17,000 movies and TV episodes available to watchinstantly on the computer and the TV. Ted has enabled Netflix to provide the broadest varietyof films for consumers as well as offer an alternate distribution method for smaller andindependent films that might not otherwise be seen. Ted began his home video career managinga metropolitan retail chain from 1983 to 1988. He then moved to video distributor ETD, wherehe served as Western regional director of sales and operations. Until March 2000, Ted was vicepresident of product and merchandising for Video City, where he negotiated the industry's firstDVD revenue sharing agreement and reduced the cost of content from all studios. Ted is aformer chapter president and board member for the Video Software Dealers Association. Healso serves on the Film Advisory Board for Tribeca Film Festival, the retail advisory board forthe Digital Entertainment Group, FIND Advisory Board and MediaRights.org, as well as a servingas a trustee for International Documentary Association. Ted has been included in Variety's"Global 50," a list of the 50 most influential people in independent film distribution, as well as



The Hollywood Reporter's "Indie Power 50." Ted lives in Beverly Hills with his wife Nicole andtwo children, Sarah and Tony.

Company Financials

Auditor

$2,162.63M

$160.85M

PublicCompany Type

1-Year Sales Growth

Prescreen Score38.83%1-Year Net Income Growth

29.48%

Low RiskKPMG LLP

Financial Summary

Fiscal Year-End December

NASDAQ (GS): NFLXHeadquarters

2010 Sales

2010 Net Income


Annual Income StatementAll amounts in millions of US Dollars except per share amounts.

Dec 2010

Revenue 2,162.63Cost of Goods Sold 1,357.35Gross Profit 805.27

Gross Profit Margin 37.24%SG&A Expense 364.39Depreciation and Amortization 338.70Operating Income 283.64Operating Margin 13.12%Nonoperating Income 0.00Nonoperating Expenses (15.94)Income Before Taxes 267.70Income Taxes 106.84Net Income After Taxes 160.85

Continuing Operations 160.85Discontinued Operations --Total Operations 160.85Total Net Income 160.85Net Profit Margin 7.44%

Diluted EPS from Continuing Operations 2.96Diluted EPS from Total Operations 2.96Diluted EPS from Total Net Income 2.96Dividends per Share --

Dec 2009

1,670.27

1,079.27591.00

35.38%289.08257.53191.94

11.49%0.000.25

192.1976.33115.86

115.86--

115.86115.86

6.94%

1.981.981.98

--

Dec 2008

1,364.66

910.23454.43

33.30%249.38242.84

121.518.90%

6.33--

131.5048.4783.03

83.03--

83.0383.03

6.08%

1.321.321.32

--

Dec 2007

1,205.34

786.17419.17

34.78%270.81224.99

91.167.56%

14.20

111.5044.5566.95

66.95--

66.9566.95

5.55%

0.970.970.97

--

Dec 2006

996.66

626.98369.67

37.09%261.68157.1464.41

6.46%4.80

80.3231.24

49.08

49.08--

49.0849.08

4.92%

0.710.710.71

--


Quarterly IncomeAll amounts in millions of US Dollars except per share amounts.

Dec 2010Quarter Ending

Revenue 595.92Cost of Goods Sold 390.79Gross Profit 205.13

Gross Profit Margin 34.42%SG&A Expense 81.96Depreciation and Amortization 338.70Operating Income 78.45Operating Margin 13.16%Nonoperating Income 0.00Nonoperating Expenses (3.89)Income Before Taxes 74.56Income Taxes 27.46Net Income After Taxes 47.09

Continuing Operations 47.10Discontinued Operations --Total Operations 47.10Total Net Income 47.10Net Profit Margin 7.90%

Diluted EPS from Continuing Operations 0.87Diluted EPS from Total Operations 0.87Diluted EPS from Total Net Income 0.87Dividends per Share --

Sep 2010

553.22

344.47208.75

37.73%98.37

233.4369.50

12.56%0.00

(4.09)65.4127.4437.97

37.97--

37.9737.97

6.86%

0.700.700.70

--

Jun 2010

519.82

314.93204.88

39.41%91.65

147.6077.34

14.88%0.00

(3.97)73.3729.8543.52

43.52--

43.5243.52

8.37%

0.800.800.80

--

Mar 2010

493.67

307.16186.50

37.78%92.4173.15

58.3511.82%

0.00(3.99)54.3622.0932.27

32.27--

32.2732.27

6.54%

0.590.590.59

--

Dec 2009

444.54

275.49169.06

38.03%84.24

257.5353.35

12.00%0.00

(2.01)51.34

20.4230.91

30.91--

30.9130.91

6.95%

0.550.550.55

--


Annual Balance SheetAll amounts in millions of US Dollars except per share amounts.

Current Assets

Inventories

Dec 2010

CashNet Receivables

Total Current Assets

--

Net Fixed Assets

265.46

128.57

194.50

640.97

181.01

212.53

Other Current Assets

982.07Total Assets

Assets

Other Noncurrent

Preferred Stock EquityCommon Stock Equity

0.00

Dec 2010

290.16

Shares Outstanding (M) 52.89290.16Total Equity

Shareholder's Equity

Long-Term Debt

Accounts Payable

Other Current Liabilities

Dec 2010

69.20Total LiabilitiesOther Noncurrent

Current Liabilities

234.12

2.08

691.90

222.82

163.67388.58

Short-Term Debt

Total Current Liabilities

Liabilities

Dec 2009

239.46

131.65

134.22

411.01

37.33

137.07679.73

0.00

Dec 2009

199.14

52.89199.14

Dec 2009

17.65236.57

1.41

480.59

91.47

133.48226.37

Dec 2008

221.57

124.95

139.88

361.45

--

131.55617.95

--

Dec 2008

347.15

52.89347.15

Dec 2008

16.7937.99

1.15

270.79

100.34

114.52216.02

Dec 2007

239.09

77.33

177.44

416.53

--

153.16647.02

--

Dec 2007

430.75

52.89430.75

Dec 2007

3.69--

--

216.27

104.44

108.13212.58

Dec 2006

27.99

55.50

400.43

428.42

--

124.86608.78

--

Dec 2006

414.21

52.89414.21

Dec 2006

1.12194.57

93.86

99.58193.45


Quarterly Balance SheetAll amounts in millions of US Dollars except per share amounts.

Quarter EndingCurrent Assets

Inventories

Dec 2010

CashNet Receivables

Total Current Assets

--

Net Fixed Assets

265.46

128.57

194.50

640.97

181.01

212.53

Other Current Assets

982.07Total Assets

Assets

Other Noncurrent

Preferred Stock EquityCommon Stock Equity

0.00

Quarter Ending Dec 2010

290.16

Shares Outstanding (M) 52.89290.16Total Equity

Shareholder's Equity

Long-Term Debt

Accounts Payable

Other Current Liabilities


69.20Total LiabilitiesOther Noncurrent

Current Liabilities

234.12

2.08

691.90

222.82

163.67388.58

Short-Term Debt

Total Current Liabilities

Liabilities

Sep 2010

240.75

125.06

113.11

492.25

138.39

152.98770.28

--

Sep 2010

191.98

52.89191.98

Sep 2010

31.54234.66

2.03

578.31

170.12

139.96312.11

Jun 2010

240.77

123.29

107.33

441.22

93.12

129.46693.97

--

Jun 2010

176.64

52.89176.64

Jun 2010

23.98235.18

1.97

517.33

120.03

136.16258.17

Mar 2010

244.11

127.17

79.86

379.54

55.57

141.59648.29

--

Mar 2010

146.74

52.89146.74

Mar 2010

22.41235.70

1.92

501.56

102.70

138.83243.45

Dec 2009

239.46

131.65

134.22

411.01

37.33

137.07679.73

0.00

Dec 2009

199.14

52.89199.14

Dec 2009

17.65236.57

1.41

480.59

91.47

133.48226.37


Annual Cash FlowAll amounts in millions of US Dollars except per share amounts.

Dec 2010

Cash and Cash Equivalents at the Beginningof Year

134.22

Net Cash Provided in Operating Activities 276.40Net Cash Provided by Investing Activities (116.08)Net Cash Provided by Financing Activities (100.04)Net Increase/Decrease in Cash and CashEquivalents

60.28

Cash and Cash Equivalents at the End ofYear

194.50

Dec 2009

139.88

325.06(246.08)

(84.64)(5.66)

134.22

Dec 2008

177.44

284.04(144.96)(176.63)(37.56)

139.88

Dec 2007

400.43

291.82(450.81)(64.00)

(222.99)

177.44

Dec 2006

212.26

247.86(185.87)

126.18188.17

400.43


Quarterly Cash FlowAll amounts in millions of US Dollars except per share amounts.


Cash and Cash Equivalents at the Beginningof Year

113.11

Net Cash Provided in Operating Activities 276.40Net Cash Provided by Investing Activities (116.08)Net Cash Provided by Financing Activities (100.04)Net Increase/Decrease in Cash and CashEquivalents

60.28

Cash and Cash Equivalents at the End ofYear

194.50

Sep 2010

107.33

179.68(57.90)

(142.90)(21.12)

113.11

Jun 2010

79.86

137.46(52.29)(112.06)(26.90)

107.33

Mar 2010

134.22

75.41(39.03)(90.74)(54.36)

79.86

Dec 2009

55.72

325.06(246.08)

(84.64)(5.66)

134.22


Earning Estimates

High Estimate

Average Estimate

Year ago EPS

28

Growth Rate

$0.63

27.10%

$0.71

$0.56

$0.78

Low Estimate

Consensus Recommendation

Dec 10

Number of Analysts

Current Quarter

48.17%$0.59$0.76$1.00

19

$0.87

Mar 11

Next Quarter

$2.81 $3.88

Current Year Next Year

Dec 10 Dec 10

29 28$3.04 $4.55$2.72 $2.85$1.98 --

42.08% 37.89%

Moderate Sell


Financial Market DataCurrent Information

Latest Short Interest Ratio

Dividend Yield 0.00%# of Institutional Holders

2.28

0.48Market Cap

41.32

52.89M$11,145.19M

52-Week High$210.72

65.75%

$247.5571.43

Last Close (04-Mar-2011)

52-Week Low

19.36%

5.29

Price/Cash Flow Ratio

Price/Sales Ratio

Price/Earnings RatioPrice/Book Ratio

Return on Assets

% Owned by InstitutionsLatest Net Insider Transactions

Long-Term Debt/Equity

Return on Equity

0.69--

38.46$67.03

Shares Outstanding

60-Month Beta

Dividend Rate -- Current Ratio 1.65

--

12 MonthGrowth 36 Month 60 Month

-- --

29.48% 21.51% 25.95%49.49% 45.05% 35.84%

Revenue GrowthEPS GrowthDividend Growth


Historical Financials

Income Statement

Year Revenue ($ M) Net Income ($ M) Net Profit Margin Employees

Dec 2010 2,162.63 160.85 7.44% 4,329

Dec 2009 1,670.27 115.86 6.94% 4,080

Dec 2008 1,364.66 83.03 6.08% 1,644

Dec 2007 1,205.34 66.95 5.55% 2,670

Dec 2006 996.66 49.08 4.92% 1,300

Dec 2005 682.21 42.03 6.16% 985

Dec 2004 506.23 21.59 4.27% 1,193

Dec 2003 272.24 6.51 2.39% 791

Dec 2002 152.81 (21.95) -- 495

Dec 2001 75.91 (38.62) -- 264

2010 Year-End Financials

Debt Ratio 80.69%Return on Equity 65.75%Cash ($ M) 194.50Current Ratio 1.65Long-Term Debt ($ M) 234.12Shares Outstanding (M) 52.89Dividend Yield 0.00%Dividend Payout --Market Cap ($ M) 9,292.88

Stock HistoryStock Price ($) P/E Per Share ($)

Year FY High FY Low FY Close High Low Earns. Div. Book Value

Dec 2010 209.24 48.52 175.70 70.69 16.39 2.96 -- 5.49

Dec 2009 61.65 28.78 55.09 31.14 14.54 1.98 -- 3.77

Dec 2008 40.90 17.90 29.89 30.98 13.56 1.32 -- 6.56

Dec 2007 29.14 15.62 26.62 30.04 16.10 0.97 -- 8.14

Dec 2006 33.12 18.12 25.86 46.65 25.52 0.71 -- 7.83

Dec 2005 30.25 8.91 27.06 47.27 13.92 0.64 -- 4.28

Dec 2004 39.77 9.25 12.33 120.52 28.03 0.33 -- 2.95

Dec 2003 30.50 5.34 27.34 305.00 53.35 0.10 -- 2.13

Dec 2002 9.10 2.42 5.51 -- -- -0.78 -- 1.69

Dec 2001 -- -- -- -- -- -10.57 -- --


Competitors ListGross Revenue Net Profit

MarginNet Operating Cash FlowCompany

$34,204.00M $3,495.00M3.37%Amazon.com (Top Competitor)

$65,225.00M $18,595.00M21.81%Apple Inc.

$124,280.00M $34,993.00M15.98%AT&T

$49,694.00M $2,206.00M2.78%Best Buy

$4,062.40M $29.30M(17.70%)Blockbuster Inc. (Top Competitor)

-- ----Columbia House

$37,937.00M $11,179.00M9.58%Comcast

$8,700.00M ----Cox Communications

$24,102.00M $5,206.00M9.12%DIRECTV

$12,640.74M $2,139.80M7.79%DISH Network

$2,350.37M $404.02M8.69%EchoStar

$29,321.00M $11,081.00M29.01%Google

$531.35M $26.60M1.29%Hastings Entertainment

-- ----HBO

$2.90M ----Hulu

$76,733.00M $2,922.00M0.09%Kroger

-- ----Redbox (Top Competitor)

-- ----Showtime Networks

-- ----Starz Entertainment

$65,357.00M $5,881.00M3.81%Target

$18,868.00M $5,218.00M6.93%Time Warner Cable

$106,565.00M $33,363.00M2.39%Verizon

$408,214.00M $26,249.00M3.51%Wal-Mart


Competitive Landscape

Annual Sales ($ M)EmployeesMarket Cap ($ M)

Netflix, Inc.

$2,162.63M4,329

$9,292.88M

Companies listed are Top Competitors.

Key Numbers

--

Blockbuster Inc.

$4,062.40M

$81,180.68M

Amazon.com, Inc.

$34,204.00M33,700

RedboxAutomated Retail,

LLC

--

--

Profitability

Gross Profit MarginPre-Tax ProfitNet Profit MarginReturn on EquityReturn on Assets

Netflix, Inc.

37.24%12.38%7.44%

65.75%19.36%

Return on InvestedCapital

33.39%

Blockbuster Inc.

53.56%(17.16%)(17.70%)

--(41.89%)

--

Amazon.com, Inc.

22.35%4.38%3.37%19.01%7.07%

17.90%


LLC

------------

Industry

30.95%4.79%1.14%

4.44%1.90%3.36%

Market

30.37%9.38%4.03%6.11%1.01%

2.79%

Valuation

Price/Sales RatioPrice/Earnings RatioPrice/Book RatioPrice/Cash Flow

Netflix, Inc.

5.2971.43

38.4641.32

Blockbuster Inc.

0.01-0.04-0.05

2.14

Amazon.com, Inc.

2.2968.03

11.2722.42


LLC

--------

Industry

1.0233.00

3.8312.79

Market

1.60--

2.3110.91

Operations

Days of SalesOutstandingInventory TurnoverDays Cost of GoodsSold in InventoryAsset TurnoverNet ReceivablesTurnover FlowEffective Tax Rate

Netflix, Inc.

--

12.429.4

2.6--

39.91%

Blockbuster Inc.

5.7

3.1118.8

2.463.5

--

Amazon.com, Inc.

13.7

9.936.9

2.126.6

23.51%


LLC

--

----

----

--

Industry

14.3

4.286.4

1.725.5

--

Market

45.7

7.051.9

0.28.0

--


Financial

Current RatioQuick RatioLeverage RatioTotal Debt/ EquityInterest Coverage

Netflix, Inc.

1.650.903.380.69

14.64

Blockbuster Inc.

1.130.29

----

(3.80)

Amazon.com, Inc.

1.331.002.740.03

39.38


LLC

----------

Industry

1.540.742.380.329.49

Market

1.461.37

5.921.11

7.97

Per Share Data

Per Share DataDividend Per ShareCash Flow Per ShareWorking Capital Per ShareLong-Term Debt Per ShareBook Value Per ShareTotal Assets Per Share

Netflix, Inc.

$39.82--

$5.09$4.77$4.43$5.49

$18.57

Blockbuster Inc.

$16.98$0.00$0.06$0.57$3.90

($2.38)$7.01

Amazon.com, Inc.

$75.01--

$7.66$7.48$1.42

$15.22$41.68


LLC

--------------

Industry

$36.26$0.13$2.90$4.87$2.55$9.68

$22.99

Market

$18.90$0.53$2.78$2.47$12.15$13.15

$77.89

Growth

12-Month Revenue12-Month Net Income12-Month EPS Growth12-Month Dividend Growth36-Month Revenue Growth36-Month Net Income Growth36-Month EPS Growth36-Month Dividend Growth

Netflix, Inc.

29.48%38.83%49.49%

--21.51%

33.93%45.05%

--

Blockbuster Inc.

(23.18%)------

(9.73%)------

Amazon.com, Inc.

39.56%27.72%24.02%

--32.11%

34.26%31.21%

--


LLC

----------------

Industry

9.86%12.04%9.79%

(10.37%)5.64%2.39%2.42%

(3.59%)

Market

1.17%23.14%

--2.18%0.47%

(6.41%)----


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