Netflix Passes 10 Million Subscribers, With 600,000 Net Additions Since the First of the Year

LOS GATOS, Calif. — Netflix, Inc. (Nasdaq: NFLX), the world’s largest online movie rental service, today announced it has surpassed 10 million subscribers, a milestone that reflects the widespread and growing appeal of the company’s service. For one low monthly price, Netflix members can get unlimited DVDs delivered to their homes quickly and can instantly watch unlimited movies and TV episodes streamed over the internet to their TVs and computers.

In crossing the 10 million subscriber threshold last night, Netflix has added more than 600,000 net subscribers since January 1. The company recently reported having surpassed nine million subscribers in the fourth quarter of 2008 and having ended the year with 9.4 million subscribers.

The company attributed the recent surge in subscribers to growing consumer recognition of the value and convenience offered by Netflix and increasingly more ways to instantly watch a growing library of movies and TV episodes from Netflix on PCs, Intel-based Macs and TVs. Netflix ready devices now include the Roku digital video player, Blu-ray disc players from LG Electronics and Samsung, Microsoft’s Xbox 360 game console and newer models of TiVo DVRs.

“Ten million subscribers is a symbolic but meaningful achievement for our company,” said Reed Hastings, Netflix co-founder and CEO. “From a subscriber standpoint, Netflix is singularly focused on making movie enjoyment easy, and we’ll strive to deliver on that promise in added and improved ways in the years to come.”

Since the Netflix subscription service was launched in September 1999, it has added subscribers at an average annual rate of nearly 30 percent. Over that time, the company has been consistently recognized as a leader in customer satisfaction in Internet commerce. For eight straight surveys, Netflix has been independently rated the number one customer experience on the Web by the Ann Arbor, Mich., research firm ForeSee Results.

In announcing it has surpassed 10 million subscribers, Netflix today reiterated the guidance it provided to investors on January 26, including the guidance for first quarter ending subscribers of 10.1 million to 10.3 million subscribers and full-year ending subscribers of 10.6 to 11.3 million subscribers.