1997 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010

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

1997 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010

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

1997 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010

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

1997 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 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 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 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 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010

Netflix partners with consumer electronics companies to stream on the Xbox 360, Bluray disc players, TV set-top boxes and the Apple Macintosh computer
Netflix announced partnership with Starz Entertainment

1997 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 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 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 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 Magazines 50 Most Admired Companies

Membership in '000
30,000
27,000 23,600 20,000

25,000
20,000

15,000
10,000
6,300 9,400 7,500

12,300

5,000
456 857 1,487

2,610

4,200

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

 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)

 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

Gives Ratings

Customers

CineMatch

Recommends To Customers

Orders based on CineMatch Recommendations

Netflix provides value to both customers and suppliers

Studios