Netflix saw declining revenues and profits from 2012-2015 as costs increased at a faster rate than revenues. Revenues grew 21.2% in 2012 but only 3.6% in 2015 while costs increased steadily each year, with general and administrative costs making up over 70% of revenues by 2015. The international streaming segment was the fastest growing segment but domestic DVD revenues declined sharply each year. Total subscribers grew 78.6% in 2015 but domestic DVD subscribers continued to drop each year.

1. Netflix Business Analysis 2015
Revenues and Profits
www.revenuesandprofits.com

2. Presentation Outline
2
‣ Overall Revenues And Profits Analysis
‣ Business Segment Revenues Analysis
‣ Key Business Metrics Analysis

3. Netflix Overall Revenues Analysis
3
Revenues (In $ Millions)
2012 2013 2014 2015
$6,780
$5,505
$4,375
$3,609
Revenue YoY Growth
2012 2013 2014 2015
21.2%
25.8%
23.2%

4. Netflix Costs Analysis
4
Costs (In $ Millions)
2012 2013 2014 2015
$407
$270
$180
$139
$651
$472
$379
$329
$824
$607
$470
$439
$4,591
$3,753
$3,117
$2,652
Cost of Revenues
Marketing
Technology and development
General and administrative
Costs As A Percentage Of Revenue
2012 2013 2014 2015
6.0%4.9%4.1%
3.9%
9.6%8.6%8.7%
9.1%
12.2%11.0%10.7%
12.2%
67.7%68.2%71.3%73.5%
Cost of Revenues as a % of Total Revenue
Marketing Expenses as a % of Total Revenue
Technology and Development Expenses as a % of Total Revenue
General & Administrative Expenses as a % of Total Revenue

5. Netflix Gross Income Analysis
5
Gross Income (In $ Millions)
2012 2013 2014 2015
$2,188
$1,752
$1,257
$957
Gross Margin
2012 2013 2014 2015
32.3%31.8%28.7%26.5%

6. Netflix Operating Income Analysis
6
Operating Profit (Loss) (In $ Millions)
2012 2013 2014 2015
$306
$403
$228
$50
Operating Margin
2012 2013 2014 2015
4.5%7.3%5.2%
1.4%

7. Netflix Net Income Analysis
7
Net Profit (Loss) (In $ Millions)
2012 2013 2014 2015
$123
$267
$112
$17
Net Margin
2012 2013 2014 2015
1.8%4.8%2.6%0.5%

8. Netflix Business Segment Revenues Analysis
8
Business Segments Revenues (In $ Millions)
2012 2013 2014 2015
$646
$765
$911
$1,137
$1,953
$1,308
$712
$288
$4,180
$3,431
$2,751
$2,185
Domestic Streaming International Streaming
Domestic DVD
Business Segments Revenue Share
2012 2013 2014 2015
9.5%13.9%20.8%31.5%
28.8%
23.8%
16.3%
8.0%
61.7%62.3%62.9%60.5%
Domestic Streaming International Streaming
Domestic DVD
Business Segments Revenue YoY Growth
2012 2013 2014 2015
-19.9% -16.0% -15.6%
147.8%
83.6%
49.3%
25.9% 24.7% 21.8%
Domestic Streaming
International Streaming
Domestic DVD

9. Netflix Subscribers Analysis
9
Netflix Total Memberships (In Millions)
2012 2013 2014 2015
4.9
5.8
6.9
8.2
30.0
18.3
10.9
6.1
44.7
39.1
33.4
27.1
Domestic Streaming International Streaming
Domestic DVD
Netflix Net Member Additions (in Thousands)
2012 2013 2014 2015
-863-1,163-1,294
11,747
7,347
4,809
5,6245,694
6,274
Domestic Streaming International Streaming
Domestic DVD
Netflix Total Memberships YoY Growth
2012 2013 2014 2015
-15.7% -16.8% -15.0%
78.6%
67.2% 64.3%
23.1%
17.0% 14.4%
Domestic Streaming
International Streaming
Domestic DVD
* Total memberships at the end of Q4 of the respective years.

10. Thank You
Revenues and Profits
www.revenuesandprofits.com