Exhibit 99.1
January 19, 2016

Fellow shareholders,

On January 1st, just a few hours after the quarter closed, we crossed 75 million members. Our quarter-end 74.76 million members put us at over 17 million net additions for the year, showing how much the world is embracing Internet TV. We think we’ll grow by over 6 million members in Q1 given our expansion of Netflix to virtually everywhere but China. We bring great stories from all over the world to people all over the world. Our summary results and Q1 forecast are below.
 (in millions except per share data and Streaming Content Obligations)
Q4 '14
Q1 '15
Q2 '15
Q3 '15
Q4 '15
Q1 '16 Forecast
Total Streaming:
 
 
 
 
 
 
Revenue
$
1,305

$
1,400

$
1,481

$
1,581

$
1,672

$
1,813

Contribution Profit
$
178

$
247

$
248

$
277

$
270

$
302

Contribution Margin
13.6
 %
17.7
 %
16.7
 %
17.5
 %
16.2
 %
16.7
 %
Paid Memberships
54.48

59.62

62.71

66.02

70.84

77.19

Total Memberships
57.39

62.27

65.55

69.17

74.76

80.86

Net Additions
4.33

4.88

3.28

3.62

5.59

6.10

 
 
 
 
 
 
 
US Streaming:
 
 
 
 
 
 
Revenue
$
917

$
985

$
1,026

$
1,064

$
1,106

$
1,160

Contribution Profit
$
257

$
312

$
340

$
344

$
379

$
416

Contribution Margin
28.0
 %
31.7
 %
33.1
 %
32.4
 %
34.3
 %
35.9
 %
Paid Memberships
37.70

40.32

41.06

42.07

43.40

45.40

Total Memberships
39.11

41.40

42.30

43.18

44.74

46.49

Net Additions
1.90

2.28

0.90

0.88

1.56

1.75

 
 
 
 
 
 
 
International Streaming:
 
 
 
 
 
 
Revenue
$
388

$
415

$
455

$
517

$
566

$
653

Contribution Profit (Loss)
$
(79
)
$
(65
)
$
(92
)
$
(68
)
$
(109
)
$
(114
)
Contribution Margin
-20.3
 %
-15.6
 %
-20.2
 %
-13.1
 %
-19.2
 %
-17.5
 %
Paid Memberships
16.78

19.30

21.65

23.95

27.44

31.79

Total Memberships
18.28

20.88

23.25

25.99

30.02

34.37

Net Additions
2.43

2.60

2.37

2.74

4.04

4.35

 
 
 
 
 
 
 
Total (including DVD):
 
 
 
 
 
 
Operating Income
$
65

$
97

$
75

$
74

$
60

$
50

Net Income*
$
83

$
24

$
26

$
29

$
43

$
11

EPS*
$
0.19

$
0.05

$
0.06

$
0.07

$
0.10

$
0.03

 
 
 
 
 
 
 
Free Cash Flow
$
(78
)
$
(163
)
$
(229
)
$
(252
)
$
(276
)
 
EBITDA
$
110

$
140

$
119

$
123

$
111

 
Shares (FD)*
432.5

433.8

436.1

437.6

438.3

 
Streaming Content Obligations** ($B)
9.5

9.8

10.1

10.4

10.9

 
*EPS and shares adjusted for 7-for-1 stock split. Q4'14 Net Income/EPS includes a $39m / $0.10 benefit from a tax accrual release related to resolution of tax audit. Q4'15 Net Income/EPS includes a $13m / $0.03 benefit from a tax accrual release related to resolution of tax audits.
**Corresponds to our total known streaming content obligations as defined in our financial statements and related notes in our most recently filed SEC Form 10-K

                                                                                                                                                    1

The following information was filed by Netflix Inc (NFLX) on Tuesday, January 19, 2016 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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