Exhibit 99.1
July 16, 2020

Fellow shareholders,

We live in uncertain times with restrictions on what we can do socially and many people are turning to entertainment for relaxation, connection, comfort and stimulation. In Q1 and Q2, we saw significant pull-forward of our underlying adoption leading to huge growth in the first half of this year (26 million paid net adds vs. prior year of 12 million). As a result, we expect less growth for the second half of 2020 compared to the prior year. As we navigate these turbulent circumstances, we’re focused on our members by continuing to improve the quality of our service and bringing new films and shows to people's screens. Our Q2 summary results and forecast for Q3 are in the table below.

(in millions except per share data and Streaming Content Obligations)Q2'19Q3'19Q4'19Q1'20Q2'20Q3'20 Forecast
Revenue$4,923  $5,245  $5,467  $5,768  $6,148  $6,327  
Y/Y % Growth26.0 %31.1 %30.6 %27.6 %24.9 %20.6 %
Operating Income$706  $980  $459  $958  $1,358  $1,245  
Operating Margin14.3 %18.7 %8.4 %16.6 %22.1 %19.7 %
Net Income$271  $665  $587  $709  $720  $954  
Diluted EPS$0.60  $1.47  $1.30  $1.57  $1.59  $2.09  
Global Streaming Paid Memberships151.56  158.33  167.09  182.86  192.95  195.45  
Y/Y % Growth21.9 %21.4 %20.0 %22.8 %27.3 %23.4 %
Global Streaming Paid Net Additions2.70  6.77  8.76  15.77  10.09  2.50  
Net cash provided by (used in) operating activities$(544) $(502) $(1,462) $260  $1,041  
Free Cash Flow*$(594) $(551) $(1,670) $162  $899  
Adjusted EBITDA**$836  $1,107  $586  $1,084  $1,489  
Shares (FD)452.2  451.6  451.4  452.5  453.9  
Streaming Content Obligations*** ($B)18.5  19.1  19.5  19.2  19.1  
Note: Figures are consolidated, including DVD.
* Free cash flow represents Net Cash provided by (used in) operating and investing activities
** Adjusted EBITDA represents net income before interest expense and other income/expense, income taxes, depreciation and amortization of property and equipment and further adjusted to exclude other non-cash charges or non-recurring items
*** 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

Ted Sarandos appointed co-CEO and elected to Board of Directors
Ted joined Netflix over 20 years ago, and we are thrilled to appoint him to be co-CEO with Reed. “Ted has been my partner for decades. This change makes formal what was already informal -- that Ted and I share the leadership of Netflix,” says Hastings. Lead Independent director Jay Hoag says “Having watched Reed and Ted work together for so long, the board and I are confident this is the right step to evolve Netflix’s management structure so that we can continue to best serve our members and shareholders for years to come.”

Ted will also continue to serve as Chief Content Officer. In addition, Greg Peters has been appointed COO adding to his Chief Product Officer role. “We want Greg to help us stay aligned and effective as we grow so quickly around the world,” said Hastings.

The following information was filed by Netflix Inc (NFLX) on Thursday, July 16, 2020 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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