Netflix Announces Second Quarter 2003 Ending Subscribers 0f 1,147,000, Up 71% Over The Prior Year
LOS GATOS, CA - July 1, 2003 - Netflix, Inc. (Nasdaq: NFLX) ended the second quarter of 2003 with approximately 1,147,000 total subscribers, within the revised range of the Company's guidance of 1,130,000 to 1,150,000 subscribers. The Company revised guidance on June 9, 2003. Subscribers grew 71 percent year-over-year from 670,000 total subscribers at the end of the second quarter of 2002 and 9 percent sequentially from 1,052,000 total subscribers at the end of the first quarter of 2003.
Paid Subscribers
Of the 1,147,000 total subscribers at quarter end, 96 percent or 1,101,000 were paying subscribers. The other 4 percent, or 46,000 subscribers, were new trial subscribers. Paying subscribers represented 94 percent of total subscribers at the end of the second quarter of 2002 and 96 percent of total subscribers at the end of the first quarter of 2003.
Household Penetration
Household penetration in the San Francisco Bay Area rose to 5.0 percent of households at the end of the second quarter of 2003, up from 3.2 percent at the end of the second quarter of 2002 and up from 4.6 percent at the end of the first quarter of 2003. Household penetration in the rest of the country reached 1.0 percent at the end of the second quarter of 2003, up from 0.57 percent at the end of the second quarter of 2002 and up from 0.90 percent at the end of the first quarter of 2003. Market research firm NPDTechWorld estimates that 54.3 percent of all U.S. households had a standalone DVD player as of the end of May 2003.
Second Quarter Earnings Release
Netflix will release its second quarter 2003 financial results on Thursday, July 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
Launched in 1998, Netflix is the world's largest online movie rental service, providing more than one million subscribers with access to a comprehensive library of more than 15,000 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 generally next-day delivery. 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.