Netflix Surpasses One Million Subscribers
Strong Customer Demand Shows Strength of Online Movie Rental Market
Netflix (NASDAQ: NFLX), the world's largest online movie rental service announced today it has surpassed one million subscribers. Netflix has nearly doubled its subscriber base each year since shifting to a subscription model in 1999, reaching one million members in less time than media giant AOL.
"We are excited and proud to have reached the one millionth subscriber level in record time while still early in the consumer adoption curve," said Reed Hastings, CEO and founder. "Our unrelenting focus on creating the best movie rental experience for our subscribers, along with the rapid adoption of DVDs, has propelled our growth to date. That growth will continue based on consumer enthusiasm for overnight delivery, no late fees and the largest library of DVDs available anywhere."
An extensive library of more than 13,500 titles -- far more than can be found at a neighborhood video store -- helps ensure members can view everything from the latest big Hollywood releases to hard-to-locate documentaries and independent films.
Better Movie Choices
Netflix makes it easier for members to find and discover movies they will enjoy. When members rate movies, Netflix customizes its site based on a member's movie tastes thereby making a library of more than 13,500 titles relevant and easily accessible. Members rented 97 percent of Netflix's movie titles in January, proving the efficiency with which the company recommends films.
Free and Fast Delivery
Members enjoy free shipping both ways, with more than 50 percent of members reached by generally next-day service. Netflix operates 16 shipping centers -- key to providing overnight delivery -- and plans to open more shipping centers throughout the country in 2003. By the end of the year, Netflix will increase the number of members reached with generally next-day service to 70 percent.
Launched in 1998, Netflix is the world's largest online subscription-based movie rental service, providing more than 1,000,000 subscribers with access to a comprehensive library of more than 13,500 DVD titles. For $19.95 a month, Netflix 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. DVDs are delivered directly to the subscriber's address by first-class mail from shipping centers throughout the United States. Netflix can reach more than half of its subscribers with next-day service. The company also provides background information on DVD releases, including critic reviews, member reviews and ratings and personalized movie recommendations. For more information on the company, visit www.netflix.com.
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the continued growth and the anticipated number and timing of our roll out of our shipping centers. These statements are subject to risks and uncertainties that could cause actual results and events to differ, including, without limitation: our ability to manage our growth; impacts to our operating margins; and, operating constraints or difficulties. 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 final prospectus dated May 22, 2002, relating to our initial public offering. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Web site: http://www.netflix.com/