Full Description

Netflix, Inc., incorporated on August 29, 1997, provides online movie rental subscription service in the United States to approximately 10 million subscribers. The Company offers a variety of plans and provides subscribers access to over 100,000 digital versatile disc (DVD) and Blu-ray titles plus more than 12,000 streaming content choices. Subscribers select titles at the Company’s Website aided by its recommendation service and merchandising tools. Subscribers receive DVD’s by United States mail and return them to the Company at their convenience using its prepaid mailers. After a DVD has been returned, The Company mails the next available DVD in a subscriber’s queue. It also offers certain titles through its instant-watching feature. Subscribers can watch streaming content without commercial interruption on personal computers, Intel-based Macintosh computers (Macs) and televisions.

The Company promotes its service to consumers through various marketing programs, including online promotions, television and radio advertising, package inserts, direct mail and other promotions with third parties. These programs encourage consumers to subscribe to its service and may include a free trial period. At the end of the free trial period, subscribers are automatically enrolled as paying subscribers, unless they cancel their subscription. All paying subscribers are billed monthly in advance. The Company stocks approximately 100,000 DVD titles. It has established revenue sharing relationships with studios and distributors. It also purchases titles directly from studios, distributors and other suppliers. In addition, the Company has more than 12,000 content choices licensed for streaming. The Company ships and receives DVDs throughout the United States. The Company maintains a nationwide network of shipping centers that allows it to provide delivery and return service to its subscribers.

The Company competes with Blockbuster, Movie Gallery, Redbox, Time Warner, Comcast, DIRECTV, Echostar, AT&T, Verizon, Best Buy, Wal-Mart, Amazon.com, Google, Apple and Hulu.com.