1. Strategic & Performance Analysis

2. The Evolution
1998 Offered DVD rentals
2000 Revenue sharing with Warner Bros. and Columbia
2002 Publicly Listed
2003 Subscribers top 1M
2007 Billionth DVD delivery
2010 Surpassed 20M subscribers & named #1 eComm
company for customer satisfaction

3. Technology Channels
Streaming Game Consoles
Mobile & Tablets Discs

4. ...what 3 movies would you stream over and over again?

5. Competitive Landscape
Product Life Cycle and Key Competitors
Subscribers by Provider
20
mln
Blu-Ray DVD
10
mln
VOD
Streaming
Video
5 mln VCR
Introduction Growth Maturity Decline

6. Financial Summary Chart 7
Margins remain healthy despite significant growth
40.0%
30.0%
20.0%
Netflix actively managing operating costs relative to sales while maintaining aggressive growth
10.0%
0%
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Sep-11
Gross Profit %
Operating Income % of Sales
-$13 bln Market Cap., $230 per share - $160 mln Net Income
- P/E Ratio= 85x vs. Peer group = 50x - Return on Equity= 26%
- $2.2 bln Sales (11’ growth 30%) - BB + S&P rating

7. User Growth
30,000
22,500
No. Subscribers
15,000
7,500
Mar-09 Jun-09
Sep-09 Dec-09
Mar-10 Jun-10
Sep-10 0
Dec-10
Mar-11
Sep-11
• Subscriber average growth at 40%
• Customer churn rates remain flat at 4%
• Impact to be seen following streaming cost increase in September 2011
• Potential offset with international expansion

8. Financial Summary
Ability to monetize subscriber growth
Average subscriber growth 40%
Manage churn rate below market average
n&
Focus on internal cost management
d itio
Maintain healthy gross margins C on wth
al Gro
anci or
Fit for Purpose Balance Sheet Fin ed f
thy ition
40% of assets are content related Heal os
P
High cash balances / Bank revolver capacity
Investment in Technology
Low / moderate Debt to Equity- 40%
Strong cash flow to service debt
Other Considerations
Cost pressure (competition, streaming video and international expansion)
Investors have significant expectations

9. Keys To Success
• Innovation
• Strong Alliances
• Quality . Brand . Size
• Cost Management