Netflix Inc (NFLX) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2012

Exhibit 99.1

January 23rd, 2013

Dear Fellow Shareholders,

Q4 capped a tremendous year for Netflix as Internet TV becomes an ever-growing part of people's lives:


•	we added nearly 10 million global streaming members in 2012,


•	we grew to over 33 million global streaming members,


•	we generated profits for the year 2012, despite large international investments establishing Netflix in 40 countries around the world, and


•	we developed several major original series, which debut this year.

Our summary results for Q4 2012 follow:



(in millions except per share data)	Q4 '11			Q1 '12			Q2 '12			Q3 '12			Q4 '12
Domestic Streaming:
Net Subscription Additions	0.22			1.74			0.53			1.16			2.05
Total Subscriptions	21.67			23.41			23.94			25.10			27.15
Paid Subscriptions	20.15			22.02			22.69			23.80			25.47
Revenue	$	476		$	507		$	533		$	556		$	589
Contribution Profit	$	52		$	67		$	83		$	91		$	109
Contribution Margin	10.9		%	13.2		%	15.6		%	16.4		%	18.5		%

International Streaming:
Net Subscription Additions	0.38			1.21			0.56			0.69			1.81
Total Subscriptions	1.86			3.07			3.62			4.31			6.12
Paid Subscriptions	1.45			2.41			3.02			3.69			4.89
Revenue	$	29		$	43		$	65		$	78		$	101
Contribution Profit (Loss)	$	(60	)	$	(103	)	$	(89	)	$	(92	)	$	(105	)

Domestic DVD:
Net Subscription Additions	(2.76)			(1.08)			(0.85)			(0.63)			(0.38)
Total Subscriptions	11.17			10.09			9.24			8.61			8.22
Paid Subscriptions	11.04			9.96			9.15			8.47			8.05
Revenue	$	370		$	320		$	291		$	271		$	254
Contribution Profit	$	194		$	146		$	134		$	131		$	128
Contribution Margin	52.4		%	45.6		%	46.0		%	48.2		%	50.1		%

Global:
Revenue	$	876		$	870		$	889		$	905		$	945
Net Income (Loss)	$	35		$	(5	)	$	6		$	8		$	8
EPS	$	0.64		$	(0.08	)	$	0.11		$	0.13		$	0.13

Free Cash Flow	$	34		$	2		$	11		$	(20	)	$	(51	)
Shares (FD)	55.4			55.5			58.8			58.7			59.1



	1

The following information was filed by Netflix Inc (NFLX) on Wednesday, January 23, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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