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Stock Symbol: NFLX

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Business Description
Netflix, Inc. is an online movie rental subscription service in the United States, providing more than 1,487,000 subscribers access to a library of more than 18,000 movies, television and other filmed entertainment titles. For the standard subscription plan, subscribers can rent as many DVDs as they want, with three movies out at a time, and keep them for as long as they like. There are no due dates and no late fees. Subscribers select titles at Netflix's Website, www.netflix.com, aided by the Company's recommendation service, receive them on DVD by first-class mail and return them to Netflix at their convenience using the Company's prepaid mailers. Once a title has been returned, the Company mails the next available title in a subscriber's queue. Netflix also provides information on DVD movies, including critic reviews, member reviews, online trailers, ratings and personalized movie recommendations.

Financial Information
For the nine months ended 9/30/04, revenues increased 90% to $362.3M. Net income totaled $16 million, up from $4.2 million. Revenues reflect higher average number of subscribers and an increase in distribution capability. Net income reflects an increase in gross profit margin.

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