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Netflix Announces Fourth Quarter 2003 Ending Subscribers Of 1,487,000, Up 74% Over The Prior Year

Jan 02, 2004
LOS GATOS, CA -- January 2, 2004 -- Netflix, Inc. (Nasdaq: NFLX) ended the fourth quarter of 2003 with approximately 1,487,000 total subscribers. Subscribers grew 74 percent year-over-year from 857,000 total subscribers at the end of the fourth quarter of 2002 and 15 percent sequentially from 1,291,000 total subscribers at the end of the third quarter of 2003.

Paid Subscribers

Of the 1,487,000 total subscribers at quarter end, 95 percent or 1,416,000 were paying subscribers. The other 5 percent, or 71,000 subscribers, were new trial subscribers. Paying subscribers represented 93 percent of total subscribers at the end of the fourth quarter of 2002 and 96 percent of total subscribers at the end of the third quarter of 2003.

Household Penetration

Household penetration in the San Francisco Bay Area rose to 5.9 percent of households at the end of the fourth quarter of 2003, up from 3.8 percent at the end of the fourth quarter of 2002 and up from 5.4 percent at the end of the third quarter of 2003. Household penetration in the rest of the country reached 1.3 percent at the end of the fourth quarter of 2003, up from 0.73 percent at the end of the fourth quarter of 2002 and up from 1.1 percent* at the end of the third quarter of 2003. Market research firm The NPD Group estimates that 63 percent of all U.S. households had a standalone DVD player as of the end of November 2003.

Fourth Quarter Earnings Release

Netflix will release its fourth quarter and fiscal year 2003 financial results on Wednesday, January 21, 2004 after the market close. The release will include guidance for 2004. A web cast of the quarterly conference call will begin at 2 PM PST and can be accessed via the web at ir.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 15,000 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 80 percent of 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.

*This figure was previously reported incorrectly as 1.2%, due to the fact that the San Francisco Bay Area was inadvertently included in the calculation for the rest of the country.

IR CONTACT:
Deborah Crawford
Director of Investor Relations
408 317-3712

PR CONTACT:
Lynn Brinton
Director of Corporate Communications
408 317-3726
Categories: Press Releases
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