Netflix Announces First Quarter 2003 Ending Subscribers of 1,052,000, Up 74% Over The Prior Year
LOS GATOS, CA — April 1, 2003 — Netflix, Inc. (Nasdaq: NFLX) ended the first quarter of
2003 with approximately 1,052,000 total subscribers, 27,000 subscribers above the high end of
the Company’s guidance of 1,025,000. Subscribers grew 74 percent year-over-year from 603,000
total subscribers at the end of the first quarter of 2002 and 23 percent sequentially from 857,000
total subscribers at the end of the fourth quarter of 2002.
Paid Subscribers
Of the 1,052,000 total subscribers at quarter end, 96 percent or 1,009,000 were paying
subscribers. The other 4 percent, or 43,000 subscribers, were new trial subscribers. Paying
subscribers represented 93 percent of total subscribers at the end of the first quarter of 2002 and
93 percent of total subscribers at the end of the fourth quarter of 2002.
Household Penetration
Household penetration in the San Francisco Bay Area rose to 4.6 percent of households at the
end of the first quarter of 2003, up from 3.8 percent at the end of the fourth quarter of 2002 and
up from 2.8 percent at the end of the first quarter of 2002. Household penetration in the rest of
the country reached 0.90 percent at the end of the first quarter of 2003, up from 0.73 percent at
the end of the fourth quarter of 2002 and up from 0.57 percent at the end of the first quarter of
2002.(1) Market research firm NPDTechWorld estimates that 50.5 percent of all U.S. households
had a standalone DVD player as of the end of February 2003.
First Quarter Earnings Release
Netflix will release its first quarter 2003 financial results on Thursday, April 17, 2003 after the
market close. A web cast of the quarterly conference call will begin at 2 PM PST and can be
accessed via the web at
www.netflix.com or at
www.prnewswire.com.
About Netflix
Netflix (Nasdaq: NFLX) is the world's largest online movie rental service providing more than
one million subscribers access to over 14,500 DVD titles. For $19.95 a month, Netflix
subscribers rent as many DVDs as they want and keep them as long as they want, with three
movies out at a time. There are no due dates, no late fees and no shipping fees. DVDs are
delivered for free by first-class mail from regional shipping centers located throughout the
United States. Netflix can reach more than half its subscribers with generally next-day delivery.
The Company provides subscribers extensive information about DVD movies including critic
reviews, member reviews, online trailers, ratings and personalized movie recommendations. For
more information visit
www.netflix.com.
(1) In updating our household penetration statistics we discovered that Rancho Santa Fe, California contained
additional households and that our penetration in Rancho Santa Fe was 4% as opposed to the previously reported
26%. There was no adjustment to our subscriber numbers used in the calculation. The change was merely the
result of revised population data. There was also no change in previously reported penetration figures for our major
metropolitan areas.