1997 2000 2003 2005 2007 2009

Reed Hastings and Marc Randolph co-found Netflix to offer online movie rentals

1999 2002 2004 2006 2008 2010

1997 2000 2003 2005 2007 2009

Netflix launches the subscription services, offering unlimited rentals for one low monthly subscriptions

1999 2002 2004 2006 2008 2010

1997 2000 2003 2005 2007 20091999 2002 2004 2006 2008 2010

Netflix launches personalized movie recommendation system that uses Netflix members’ ratings to accurately predict choices for all Netflix members

1997 2000 2003 2005 2007 20091999 2002 2004 2006 2008 2010

May, 22: Netflix makes IPO of 5,500,000 shares at $15.00 per share on Nasdaq. Total Members: 600,000

Dec, 31: Netflix ends 2002 with 857,000 members, up from 88% in 2001

1997 2000 2003 2005 2007 20091999 2002 2004 2006 2008 2010

Netflix launches Netflix prizes, promising $1MM to the first person/team who can achieve certain accuracy goals in recommending movies based on personal preferences. The company releases 100MM anonymous movie ratings ranging from 1to 5 stars, the largest such data ever released.

1997 2000 2003 2005 2007 20091999 2002 2004 2006 2008 2010

Netflix partners with consumer electronics companies to stream on the Xbox 360, Blu-ray disc players, TV set-

top boxes and the Apple Macintosh computer

Netflix announced partnership with Starz Entertainment

1997 2000 2003 2005 2007 20091999 2002 2004 2006 2008 2010

Netflix partners with consumer electronic companies to stream on

the PS3, internet TVs (Apple TV) and other Internet connected

devices

Netflix awards the $1 million Netflix Prize to the "BellKor's

Pragmatic Chaos" team of seven researchers from four countries; over three years the contest has

attracted more than 40,000 teams from 186 countries

1997 2000 2003 2005 2007 20091999 2002 2004 2006 2008 2010

Netflix is available on Apple iPad, iPhone and

iPod Touch, the Nintendo Wii, and other

internet devices

Netflix announced partnership with

Paramount Lions Gate and MGM

Netflix launches in Canada

Netflix went on to launch throughout Latin America, the Caribbean, UK and Ireland in 2011 and 2012. In Mar 2011, Netflix was also named one of Fortune Magazine’s “50 Most Admired Companies”

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -

5,000

10,000

15,000

20,000

25,000

30,000

456 857 1,487 2,610

4,200 6,300

7,500 9,400

12,300

20,000

23,600

27,000

Membership in '000

• Unique Customer Experience through Personalized Recommendation System – CineMatch™

• Business Objective: Maximize member satisfaction and month-to-month subscription retention

• Business Rationale: Maximize consumption of video content (maximizing value from existing inventory)

Reduce Cost

Maximize Profit -

Subscribers

• Unique Selling Point–No Late fees–Fast Delivery–Pre-paid return envelopes–Over 100,000 selections

1.Return at your convenience

2. Customized Experience

• The Long-Tail Advantage–Wide selection of obscure titles–30% of Netflix rentals were the

latest blockbusters against 70% of video rental stores–Partnership & Tie-ups with Major

Studios

Customers

Studios

CineMatch

Orders based on CineMatch Recommendations

RecommendsTo Customers

GivesRatings

Netflix provides value to both customers and suppliers