Netflix Opens New Shipping Center
Kansas City Facility Speeds Movie Delivery in Several States
LOS GATOS, Calif., March 29 -- Netflix (NASDAQ:NFLX) , the world`s largest online movie rental service, today announced the opening of a shipping center in Kansas City to serve more than three million residents across Missouri, Kansas, Nebraska, Iowa and the Oklahoma panhandle.
Regional shipping centers are an important part of Netflix`s ongoing strategy to provide next-day movie delivery to its members. Netflix now reaches more than 80 percent of its members with generally one-day delivery.
"Netflix members already love the convenience of online access to more than 18,000 movies," said Reed Hastings, Netflix CEO and co-founder. "Overnight delivery makes it even easier to enjoy great movies."
The continued opening of shipping centers reinforces Netflix`s leadership in the online movie rental market it pioneered. The centers strive regionally to replicate Netflix`s success and experience in the San Francisco Bay Area, where it opened its first facility five years ago. Today more than 5 percent of all households in the Bay Area are Netflix subscribers. The region has received generally next-day delivery for four years.
Netflix has said it expects five percent of all U.S. households to become Netflix members by 2006, resulting in five million members and generating $1 billion in revenue.
Additional shipping centers throughout the United States serve the following metro markets: Atlanta, Austin, Boston, Chicago, Cleveland, Dallas, Denver, Detroit, Fort Lauderdale, Greensboro, Houston, Los Angeles, Minneapolis, New York, Newark, Orlando, Philadelphia, Phoenix, Portland, Richmond, Rochester, San Jose, Seattle, St. Louis, Tampa and Washington, DC.
About Netflix
Netflix is the world`s largest online movie rental service, providing more than one million subscribers access to over 18,000 DVD titles. For $19.95 a month, Netflix subscribers rent as many DVDs as they want, and keep them as long as they want, with three movies out at a time. There are no due dates, no late fees and no shipping fees. DVDs are delivered for free by first-class mail from regional shipping centers located throughout the United States. Netflix can reach more than 80 percent of its subscribers with generally next- day delivery. The company provides subscribers extensive information about DVD movies, including critic reviews, member reviews, online trailers, ratings, and personalized movie recommendations. For more information, visit www.netflix.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the impact these centers will have on Netflix`s leadership position, our ability to replicate regionally the successes of the San Francisco Bay area, expectations regarding household penetration and revenue. These statements are subject to risks and uncertainties that could cause actual results and events to differ, including, without limitation; the risk that the San Francisco Bay area is not indicative of likely behavior in the rest of the country; our ability to manage our growth; and, operating constraints or difficulties. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2004. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
CONTACT:
Lynn Brinton
+1-415-533-5190
Catherine England
+1-408-656-8872
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