COMPANY BACKGROUND

1 Netflix was incorporated, though retail operations did not

997 begin until. This year Reed Hastings, and Marc Randolph to offer
online movie rentals.

1 The retail operations started. This year, Netflix launches their online
998 website, netflix.com and started the sales and rentals of DVD.

1 Netflix opened its main distribution center. This year, the

999 Marque Program were also created, which let customers to rent one
DVD at a time and select three to rent in the future for a low
monthly price.

2 New innovative program was created called CineMatch,

000 which provided customers with video title recommendation.

2 Marque Program were advertised with unlimited rentals for

001 much lower price per month.

2 An Initial Public Opening (IPO) for Netflix which they sold

002 roughly 6million shares of common stock for $15 per share.

2 First revenue report of Netflix which hits $6.5million on

003 revenues of $272 million.

2 A decrease in subscription cost was announced which

004 allows customers to rent three movies at a time with no due dates
or subscription fee.
 2 Netflix grew again one million subscribers in 10months,
005 thus reaching three million subscribers this year.
 2 Online streaming was introduced which allowed customers
007 to watch movies instantly on their personal computers rather than
to receive DVDs by mail.

2 Started to partner on some electronic companies, which

008 broadens the service of Netflix.

2 Netflix continue to partner on electronic companies which

009 made streaming available on gaming consoles and other internet
connected devices.

2 Netflix became available on apple devices and furthermore

010 enhance their reach by partnership on more electronic companies.
This year Netflix also decided to come out of the box by global
expansion.

2 In the middle of this year, Netflix hits 24million

011 subscribers and placed 60% price increase on all subscribers. The
DVD by mail company and stream demand company also split into
two. The latter to be called Quickster and the former to remain
Netflix.
Mission Statement of Netflix:

"Our core strategy is to grow our streaming subscription business domestically and
globally. We are continuously improving the customer experience, with a focus on
expanding our streaming content, enhancing our user interface and extending our
streaming service to even more Internet-connected devices, while staying within
the parameters of our consolidated net income and operating segment contribution
profit targets."

Proposed Vision:

In the year 2021, our vision is to be the world’s first choice in delivering wide range home
video entertainment content while providing our subscribers absolute convenience and innovative
solutions.

Proposed Mission:

Netflix Inc. strives to be the world’s pioneer in home video entertainment distribution and
is committed to provide high-quality series and movies, spurred by the customers, to call forth
innovation. We will accentuate our relations with our employees to be rational and well-founded
and to uplift the security for employment. We seek to possess genuine sense of responsibility to
our employees, our customers, our environment, and to the community in which we operate. We
will conduct our operations diligently and persistently, at the highest levels of ethics and
compliance, to obtain financial stability and provide healthy financial rewards for investors, and
ultimately be the leading provider of Internet subscription service for enjoying TV shows and
movies by continuously improving the customer experience, with a focus on expanding our
streaming content, enhancing our user interfaces and extending our streaming service to even more
Internet-connected devices, while staying within the parameters of our operating margin targets.