Netflix Announces Second Quarter 2002 Ending and Acquired Subscribers
LOS GATOS, Calif., July 1 /PRNewswire-FirstCall/ --
Netflix, Inc. announced that it ended the second quarter of
2002 with 670,000 total subscribers. This represents a 118 percent
year-over-year increase over the 308,000 total subscribers at the end of the
second quarter of 2001 and an 11 percent sequential increase over the 603,000
total subscribers at the end of the first quarter of 2002.
In the second quarter of 2002, the Company acquired a total of 236,000 new
trial subscribers. This represents a 168 percent year-over-year increase over
the 88,000 new trial subscribers in the second quarter of 2001 and a
sequential decline of approximately 24 percent over the 312,000 new trial
subscribers in the first quarter of 2002. This compares to a 39 percent
sequential decline in last year's second quarter from the first quarter of
last year. Historically, the Company has experienced rapid growth in new
trial subscribers in the fourth and first calendar quarters, paced by holiday
sales of new DVD players, followed by a period of relative slow seasonal
growth in the second calendar quarter.
Netflix member growth has benefited from the increasing popularity of the
DVD format. Market research firm NPDTechworld reports that 31 percent of all
U.S. households have a standalone DVD player. In addition, Netflix has likely
benefited from the emergence of DVD players priced less than $100, further
accelerating mass-market growth.
Average monthly churn for the second quarter of 2002 was 6.7 percent.
This compares to average monthly churn of 7.1 percent in the second quarter of
2001 and 7.2 percent in the first quarter of 2002. Churn includes free trial
subscribers as well as paying subscribers who elect not to renew their monthly
Netflix subscription service.
Netflix will release its second quarter 2002 financial results on
Wednesday, July 24, 2002 after the market close. A web cast of the quarterly
conference call will begin at 2:00 PM PDT, and can be accessed via the web at
www.netflix.com or at www.prnewswire.com.
About Netflix
Launched in 1998, Netflix is the world's largest online DVD rental
service, with more than 670,000 subscribers and a comprehensive library of
over 11,500 titles. For $19.95 a month, Netflix subscribers can view as many
DVDs as they want and keep the movies 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. Based in Los Gatos, California, the company also
provides background information on DVD releases, including reviews, member
reviews and ratings, and personalized movie recommendations. For more
information on the company, visit www.netflix.com.