Netflix, Inc. Securities Litigation 04-CV-2978-Declaration Of Cameron P. Hoffman In Support Of

72 Pages·2005·5.71 MB·English

EXHIBIT
B-1
Thomas Weisel Partners
MERCHANT BANKIN G
Champions of Growth
June 17; 2002
Media & Broadcasting NETFLIX, INC .1'2-BUY
Gordon Hodge
THE POSTMAN ALWAYS RINGS TWICE . . .WITH YOUR
415 .364 .2575
Netflix Penetration of U .S . TV Households : 1999-2006E
3000 - - 3.00 %
2500 2.50%
Current Bay Area penetration : 2.8%- 0
2000 - 2.00%
O
1500-, 1 .50 ,
QI
5 1000 1 .00% Fj
w I 0
500 } 0 .50 %
i
0 0 .00 %
1999 2000 2001 2002E 2003E 2004E 2005E 2006E
ti Ending subs (000s) --* - Penetration of TV household s
Source: Adams Media Research, Company reports and Thomas Weisel Partne rs LLC est¢rtate s
FINANCIAL MODEL ASSUMPTION S
Revenue Drivers
Revenues are driven by the number of paving subscribers and the average subscrip ti on
fees per subscriber . Paying subsc ri bers are simply net subscribers less those enjoying a
10- to 14-day free trial . In 2001, revenue per average paving subscriber was $20 .08,
slightly above the standard subscription rate of $19 .95 given some heavy user subscri bers
in the m ix . In 1Q02, we estimate the average fee increased to $21 .00 . Going forward,
we assume an average of $19 .95/ month per paying subsc ri ber .
Subscribers and Chu m
The company ended 1 Q02 with 603,000 total subscribers after adding 312,000 during the
quarter on a gross basis and 147,000 on a net basis . Reported churn was 7 .2% a month
calculated as churned subscribers of 165,000 divided by the sum of beginning subscribers
of 456,000 and gross adds of 312,000, divided by three months . (We also calculate churn
on a compounded basis, which equates to 7 .7% per month.) Reported churn was 10 .2%
in the year-earlier period, 1Q0I . (We believe there may be seasonal variance in churn so
we look at it on a year/year basis rather than a sequential basis .) We look for chum to
improve slightly from 8% in 2001 to 7 .4'% in, 2002 and 7 .0% in 2003 as the company
benefits from the opening of nine low-cost, regional hub distribution centers, which
.
improve delivery speed and are expected to increase customer satisfaction levels
Gordon Hodge 415.364 .2575 6
Thomas Weisel Partners LLC
M«fp . Inc. 007000 Motlge [phone]
IRO0• sl•I.m«Ir p. 472
$09777 Lln [phone]
. ...c01 Os rw «
FSt f ILsm J1 1-
p0
416 Q26 2M 9M Y. 916 S]IE Off 4F xw alE ME 07E 93E X..
B U.S 1vWrm7Ml
O
U.S.NMUSSIwIps (rtvy d1 1051 IdB td0 +0l.0 1439 td9 Id9 101.} F-77-71 101 ! 1011 1112 1701 1701
pr~
11.5.]700OVDIw0• Mpa lmnl ]3 ] 297 215 ,2D b9 218 Sly BI] N] e1 1
U. S. 5.41op OVD IwrMOF (mnl 12.6 151 lei 3t! N .a NE 31! bl n.1 ]6.0 J60 Jel 10.9 Il .] 15.7 .5 .)
n NFMlF <IEFME9rpsrwr«ion%N O.JY 0]% 0] % 0]% O<% IK 06. % 0.0% ex 09X 09% 0.9% 0D%% IS% IM
0
u9rm•, mF<rw.rP.,.t.«en x .FarDw 1t% 10% I0% 1M 1~K 1.5% 1S% 16% IS% 1 I0% re%
N.Mi<<WS <pOSrpn«r.lun %S« egp OVD I]% 19% Ib% I .S% I .e% I .e% 2M 2f%% 21% 21% II% ISx SIY 2.3% }ex 2 .eY
00
lgs .+~B sue •ve«s laoorl 291 Jo] be <se B9] em
Gres tlpF 100p1 tN IIi l1I 110 150 ]50 1121 }50 b0 1150 tXq
ias d~rrW •WS IOOMI Ifdl 11 ]]1 Ie]I loll 11031 10x1 116M11 I IF01 I leel It011 Irtel 11%.11 1 I «1e1 21<2I. 19911
l~Mry«l.er9>.n I0d .1 29a lOJ feB 111 W W N] W 1oF t SSO 9s6
(r
.`) l!] NM kApM I01A) v 6SJ S1 t6 1 31 1U1 0 ] ]91 101 10 i% 118
EiN lre•IrW 10.) 12 13 I9 58 b l3 H 5] s> li b Ie d
h A
EM YS+~O • M .crSwn 11%10.1 391 }95 )16' IW 100 SrA 611 66B 7 1D1 970 955 Ip1. 11Po 1 1
r Mwp••uboMal060.) +e9 399 Jd ]21 ]DS 330 s]o en 973 1]B 052 902 B ]I - 2 115$ 1019
r 44e 049 p954)4945.41 11< 39] ]OB 359 Jd In Se] 610 1]] 670 952 911 939 Bl1
U3 Arras ps5tlp •ue %Igsl D] 1% 959X 931% 909% 9t 1% 90 f% 9J 5% 91 e% 911% 9]3% 91 .Sx 95 a% 950% 9511% 95
•~ws9•mWN/<Nm x-mn90+<O.B if 0% 1+Ax 70% Jo% e7% eM JM J.S% 15% 70% 7<% to% 7o% 7.2% 70% z0%
A.wgs meMls «rm Y .rrorf.2 102% z.+x 95% 51% e01t 72 7,0% 95% 93% 95% 35% 91*
A.~ys p.bp Wn% ]f% b% 19% I)% 31% IIY 21 % 10% 49% 30% 25% 20* b%
il004I rwVwp pry 130 f i3 B1 { 10 }S 1 1929 f bd 3 1993 S 10 .40 8 2100 1 10.95 3 10.93 S 19.05 { 20.18 4 95 S 19 .93 { IO 03 1 1905 { 39 .tl
hr«s9snMMF rwJeq .W S IS.e1 t 19.11 1 19.99 { 10.13 { 18 .01 s te. n { 199] S 19.96 3 19.91 1 1979 { +e.ef 3 19 .0.5 1 1970 S 1911 S le9a { 1901
9~WMpler msrus•IM~nI ]a.f5 f9.]1+ Nl tat t .0aa s9.II0 Kba aa] .b0
Frr leW ASNUE Is3 S.S.I 110 ] .e0 <e0 Ae0 1 _ Ie0 S<b .BO < .
1 .4944!154
09Y Pwcnrr Rw Sw• (000) b9 J9e IBt 393 1 .592 D]t Sn eb 7]6 29. 83 887 967 1,014 1ue 4 007
08Y Purtlrr - N%Rw Sw. 10001 e5 SI 9! JE6 034 NI 11] ]ts 1136 ]e0 NO W 492 7 )f7
044 Pw<Mrr d51.pm.w 1001.171% % t] f% 10 .3% n0 % 0 .0% 40% 9,0% t0 e% 90% 9,
iqJ 514 PucI~rr 10701 IBl 433 dB I.bt 925 PI} 1 .719 1.}R} tNe 1 .610 9,723
VM.0dfl urtlwr 3.0 1,e 11.] 3.0 d0 a0 13 a1 SS 203. 9.! J.3 B.5 29 .9
Ap ruler 6h Wrcnr•ESmsn 3 1901 { fl l6 S 1<Ie 1 19.97 0 1519 t 10 ]I 9 11 .10 i 1310 9 1210 f i1 P] 1 ¶4 7 0 5 1110 t 1270 1 1} .10 1 32.70
%DY. Pwclrr Pw 9w. 99% ee% bK b% el% }0% 10% }0% 70% 10% 70% 70% 70% 70%
%DYS Pwwr . Kn Rn BMn 01x 14% 10% 11% tB% 30 % bx ]fl%
DY4 •M1pptl 100011 ..F ! ] 1.3N SSb Ie.5B0 9.19 01}9 11 m .- 11011 15 19 .70} 19,3}1 93,530
Aq7 lS ps • Fq •M'mvNn 44l ~9 I9.1 r I30 5. 0 S0. S.I 51 St 5.2 S.2
Ay mar pw .nelry n~l✓mmtn sl 39 a <J al le le 1.9 51 10 ae
ceFl• el •W mYN•
www. .Mgcvnlimn) +e 1 2 1 zY 11 a o.t e] 11 e.i 9]] lo n.] t} .z 1x9 Ae 60 .9
x ~N .IwwuESCrpbn l .h.79 asx tesx IsM aO.Jx 114% 150 % x50% P52% If a1 x92%% a.fK i70% Tl0% zLM 250%
xdea. p•MEmrw .w. 15u0% .9x u% 500 s0% 580 590 130 ]ox sox
3M .r91 e 44snb5 s n • p p.E f fe0 1 te0 S 1!0 9 1!0 f 53 { e0 t 90 f teo f 1 .60 t •e0 I 1!0 { 70 ! 160 { 1 .80 1 1 .0 0
0Rw p Y1d• 4-bw~p• .c[Ar 4 0!19 d7% 5047 by !73 n b7 0907
Aq pgrMWpscl~rtl pY. •099.9 1 1.19 S 1!1 t 1010 I , 153 1 090 133 9t0 9O 70 O 1 eS 3O 3 1 sQ 09 15{3 0 O.Q S O.ai
S
10n9p1D+S9p pa9c•.gc53y< 1V9q1 <1«91I11S( 1 0 1504000)1 n f .Oat 1 _2 t s] ]t o.301 0t { 1so.exJ t 07 n4 2 oo07 sf e3a9 ea t oe..J] 0]t2.z9 11 e2.J 33 oe] t o131 { oS,7+ 53299
Amvlxane085.4lr 10114«ma Da 30 or }2 019 07 3i 29 ]e 03 7 0] 07 0 0.} }e
DgcMS02 ve an. coldrw•nur 11549 +•9 tla 9 u7s t9 t9 ]0 2e 750 Jr le 50 02 +e f
rua<rla . m ~.. +e: +oe 1 fas 1 + .9 teo Iot ne }s 213 Ja+ n9 s1 ua e
FwYM9lfmnl F<rW Vplw 703 2e 2e 2.5 2.1 +0.] 31 e0 Se el IU9. 7.1 e.9 100 35,0
F, lnrNtlM MS. . nppq 1 091 { 070 f 034 S ON f 0 .16 5 0]0 1 056 S 051 1 050 S 0 .51 f 055 { 0.5! 3 50 1 059 f 0b
FJinrUp •u0 f 12.11 f 1175 3 ¶023 1 737 1 10 .]9 1 IBS { ed 1 I.IS 1 11111 32. 13 1 !51 1 959 { eye s e.Se s ]I.]}
Crtlscvdlr l ^«) 1 .! Oe 09 05 01 ].2 fU s0 1.2 1.J 3,0 1.5 I .i 1! 2 0 >0
~rtls crplrlrwwwr 1 .5% 11% 4 1 % I2% ]9% < ]]% ]0% 3.0% 10% 3.1% 3.0% 30 %
trslrslKr41tl s0 «~r (1540) (0.1 .91 (05511 (0 Blq (0 Bn) 12 .984) 10.} 91) (0!30) (0 .]921 11 .1701 (31Y11
R«sulplmx.a«ILnnl f1 39 ].J 1B 1f.{ lx e.9 at as n.9 9.9 9.s 9.1 194 ]e.3
cs««D wRl.n rB«n•lsmnl 0} 25 tz.+ l9 •e as ms 073 9.0 Is us ]B.0
Nwsp 010)60cvUfl'•FS 42 rvb S }J B9 1 x3 1 1 to 01 1 r !S 3 1913 f 21
01] ]1 29 22 17 0
U
1
oe oe 07 09 O J
437 997 lf S ]31 tt }.l0 t x90 1v 15
.19 3 ]015 ISJJ I] t <01. f It.tp { 01 ! 1620 3 bb S ]2
.IJLl 19 f ID.a tl3 I},} fea ta.a t 2 1«•15401 ry a]
v
Source : Com pany reports and Thomas Weisel Partners LLC estimates
c'
ACC Thomas Weisel Partners
MERCHANT BANKIN G
Champions of . Growth
Media & Broadcastin g NETFLIX, INC.1'2--BUY
Gordon Hodge
Q2 ENDING SUBSCRIBERS EXCEED EXPECTATIONS
415 .364 .2575
sIn S
1az Y40 9426 352+8 D!0 *_1- Q L 29201 5295 24956i t. 25156 0292600 0S037R 62lbrtny5yLein6 (415f) 35646 -271517594
qc~5sSo . 5 r.72vw.u>4rg.o0Vp00u B 50Wr0.2 0 5U1t7t50mVx58 O56f6 1P1vn1w.3fa0mu89rd71n.rf0)0ao0M 0nl)a6l%ml~!. lSMhp 050 1
(0X21I.In1.4+.0.1]n361tl6]6%3% 1 1 121l10615311J9O343..1%9)Y3J 7 1 2 (0201116 59SJ3043.Y.)61YY76%0 % 1( 302p N%1St1J 1A.+)0J6.3%N5 0 Y%171 % 31 0 I0 U8131605I.Jp31.I4093rX%%6 41 U351010 21(14646.064%890926 9) 2% 1w 1021 U21637O1w363.96.135q1% X9 )Y1 1Y 7J 01 0Ub069J2.'136.1.6 ]1%%6 11 %5(10O2 1pJ621l3 J.14.Y569%5%I) 011 5013 S237626O1.Y04.50%165271 0 )% 14 36 52(0165607s.141.2013%6s1582% )% 61 236 015Y05101 09Sr9.%0.6.% 65 9)32% I 15 I 51-W2l50.10.00.1 3% 991 919%3%1 9 JI 121U1S71 206.Mf1.6 7 0 15%J4601%1 0 5 16 7%1U127U0A13J3.0l Y)1%1r 7 6161I11053-1570.%)96..1Y051%
5tw55ig9 hP.8 *6794a8wIO0OYmN1 .10009 1 SJ 1195+2 29 62 136115 1.i0n 09 1 160. 05 6Sp1 a 5461611 6 6b9 11J9.]3 ] 39451 J909 10. 95 635J9 1 02b476 711Y99r3 11.i96s
spnurwwsa+ eg9e+ea lp 0tPni5rwvo.4ntnan06 u29mW 7ea ,.t7n~s6tsu:0lva.)e9..l9+trm9- tniat lw Sf 11S51S51.J1.aB60Y%%64Y 93S 1 1r9291"9107.1Y.16145%21 ]S1 5% S t1 13l1593t.5.i969.t 2% f4 Yt fS ]1I 62l915193192 {.0.1.051M181 1%9%1531 6 9 3 p 16f6 7 I1.1 7]I.1.90S6393%03]2 5 7 ]f 140 2 109 4 tl387206 0,863L32% 7357'%0 79S % S 23 3 9M5 41721703615.%.,.Y0141601%%10 9%0f 5 S26 Y ]1 113I9Y93.705%83Yp%l%5 % 03S 06 2 1617I46146.735.9309.5%151 %0 3%S 1 9W41 6916Y47.5171O.f"*% 5 1 9 6r03%7 /4.73%1%936 64 3 3356 1 W139 16]519.3A.8.%15265D 5 %1%f f 5 19 9S19 5409S2.Y]69%Y10]%51Y % f 1 f91Y 90159I.6J931.536 6%52B]9 050S% % 1 a 1393 144581 91U1 Y5.Y69%918%51 OSf%$ J1 r29%11I.90.U.19010%659l%%1
a
tYaMYKYrQu tYt Ym l90P Pu yOP5nqW0V vP n9 uTP3rPpv4NuwMr W aPr0+n0aw uvp nW u p14a- RsI vt79ONurn fn 69+ oROY4un9SW w~M .*1ONfa'0 a )S Sn5 S0fnN6 5 0N!(S Wp701antmu0+ ns50MW lu1) 0ra30X.01 3 1413O.315Y83]5
5.70935074Y1% )9f3 J 1 1 1%1 Y1 ] 01. l696.39%64 0%5 H1 S • 1 27Y5-03%11.•.637.13%023S % 1 3 915 11J5 6.92Y.3. 91439.% 6307%J 5S 06 1 Y6131 0956,75,.5.B 4 9.0%3951 9%2 %8 Sl77 93 6011]J309 10.702N0.463%92% I933 1019221]50.011%7r5D0% 1 %S 0 91 39l326.1..5100101J9130%40* 5 6 f1 713 1 1l01]1519.50%9J706.,4050%6%521 1 55 2361 1J15)b0,616..10.1091%%.61635096 % S 0N 1•169 2% l]723740586 0.610960 %1 1]33% 01 1S9 5r2%0 49..171 5.75%001] 1%3 63f1] 1 150591251 .70.%0-47.0905%2 %3 ' I b1Sp7lI295.A01I%.1,.7I0.%319I50w% 1 3 6 71 2 51]0912900.3%73.1.7071910.60*9.482%1
R
M"
m: P9C _a9apt85o a71"902i.a ap4Sa0M6YN*tu.l5*.-am e81ua0ga9 qu eYc84M-8 0 7nmP. 04yp0r94Uae 0v smu.0vt,6 ,nr6a u0 0JI-m 0ni72lme 8u01.0I0u92n3t4l4e8u7)859l.a9n70472-w.)Mp6vp0ap0-1.23)56.7) l11I541%93Ss 1 10111.1Y2O4e6..4A609389%1036'1 2s S f9 51 x21 010640I.Sl 9.9065$ 049S4l1 SS3 2Zp 5 9 0301311.%.911.09%5]45] 7XS 3 1 5 f4A 02l0I.bO.19.3]%0.X%5r3 SJ 1 s3 0 b153 S64'M+6J.%A%.7 3 3X1X3 5S 6 16 6 010,05] 10 S1l.6 7.J. %rSOS90]1 f X D10%01 2967S1]. 5701].9O6-0 5S0%J 0 3 0S 0 O107S19910. 4O0%x0 17 1Y9 3 2f6 2103200509.9.3 76 0 3S31S f% 60 O 0 522f 30Y16 1].1%615 p'5661 I$ 0 10 25 %1102S1r'1)1] 31 2S 3f10o90 3 OO O?067165U2J%11.0t16 4 %S 3S D 3 51 105101'16%06+J 2r. 16.%0501.9 7l 9f S1 05S1535 0 0 55O1X7I-26.w1 . .%231 1 15 1 3S2 116 O0 9pN0291S.69369.+0%61'.
Fu
wutnopw xMei6o1nm+41ra6J9~2n 514,IiV9sIf 4I1e4rfnow9a-)rl4 +adrf L.lw)w i4np.vw6ncbn 9u),I.He aW2¢n0n.{n7pla0e MIsmaml 1l .15%061 S 1901116SJ10.116 6 3 1 3 6 41SB 1O.]. 52Ys 3 f O %1 100251 ]16 1SJfI 7O61.39%.l1 1t 1 f f 11 303004.2.515359X1 Sf ]301I(0 5f].1b.3 0934)9 S04 09 a51030 .5.'f5 ,.5 10s085 1 %a31.- .112.521t 2 51 f S 013a0 16.91.1529.5 51 S 31S 3?I 03pI25.t.0M1.19. ls]S 5f O3% O 643S1453S3.51 5 S1313 0 606Sf6 .]0.50.165B % 1f 0f1p0 .1J.9.52Y96)O5 S 1f% I10090.t.18Y 5. 134)]05 I 01 J2f 1904]3]5714.053101
1FO5.r5+ur m51b5e8fa+1N9l96dq + 9r7qP 09S0.~5nc45Fu1aq91n sW4~au w 6E(n n 1a7a2Ca 0Ep3n na50a59 .u5 6c+un5Dv01a1E~U 9ef 79I4S38m895 na0lmrl.auo am SS] 6K1] .07 1.I.t5 I 1I IA.9 A5a 12117,11 l.f9 >t9.61 11.503 10 .15l 3 1].5 13 23 :-:I4. :f S1S1 J94 S 301203 0735 2 21 f1 .1.2 039
Source: Adams Media Research , company reports , public documents and Thomas Weisel Pa rtners LLC estimates 71zro z
Gordon Hodge 415 .364 .2575 4
Thomas Weisel Partners LLC
Thomas Weisel Partners
'MERCHANT BANKIN G
Champions of Growth
JWy 25, 2002
Media & Broadcasting NETFLIX, INC.-BUY
Gordon Hodge FREE CASH FLOW HIGHER THAN EXPECTED ; HUB
415 .364 .2575
M ~~: GOrtbn FlmLaH151 W-515
IS In ntlem+.9r~q pd w91 SOSry Lf] (4151 >6l-T1)5
0E1531 1660 1061 2962E -
1w 936 970 973 Q40 IM 41(0 97(0 (03(0 OSE 1 GSE f77E 93E 40 T6. 50
Su9.n16w aslM
U.S N11000 Md pmt 106.2 1b ] 105.1 105.6 108.0 106.0 106 106.6 106 .9 1013 101 3 101 .3 1 07 1 108.1 100 .4 1007
us S-p ewfvldb h 1 A .] 21.7 19.7 21.6 38.9 b9 270 M.1 33.5 567 36 61 .) MJ 813 )0).1 0
U S. SND9~D 6ds0volb (7gy)m 126 15.T 03 21.6 146 N.6 2).6 0.6 11 36.0 ]6.0 0 ]6.4 b9 41.J 2] 45
IMltr altleoOrpwiatln+%-N O.J% 0 .3% 0.40 06% 06 0¶12% 1 5% 0.5% 0.9% 06R 10% 1 . 11X
M64 tu6vErprM.Mt%-idY DVD IA% 76% t3% 1.2% 1 2 % 1A% 1 ]% 15% !46% 16% 1 .!.% 2.6X 2 .6 % 6% 1 .6%
Ihn4 aW V W p 9 (*1) 5'Md+p DVD 23 19 0 Y 16% 1 .5% 333 1.6X 2 0 1 23% 230 24% 4I2A% 00 250 614 25% ] .6 Y 20%
60606 Si 609) 1000.1 41 292 x95 YI6 3J1 166 3(3 mJ )15 466 W 9!.1 99J 1089 6 .50
DIa. .88.1000a) ~J) ee 1. a) 566 1x 116 ISS s.t ilu SW zn JIIO 450 1J0p
I~+dldnFlwb 100D+1 11m1 I1J]I Iml letl 11051 (4D2) (1651 Itml (tml f2m) (5201 11961 12':11 Ix2e) (m) IeH
BMlq npelOw.1960.1 393 >91 SM 331 W 80] T 11! W W Ytl 1869 t3Y 130
Hy 42267*) 5] f1 5 x6 1x2 1W 141 61 45 134 ]W 101 ]6 197 411
S*.2 r90I1S6 ( ) 12 19 56 ]6 52 5] :I6 16 66
6d9050,97l*w~tes910005) Al 298 215 b0 551 661 681 N5 )96 901 94 1024 1196 1196
4v.60634 v9+.1000) 166 x96 306 321 ]95 310 611 8m 973 1031 1019
36.6.75.59q .Wdbr 272 293 bfi 159 018 65T TJ9 61] 552 911 989 1111 911
Amy. gyfp ep*0% 921% 95 .9% 95.10 m.9% 91.10 90.1% 93.3% 91 .9% 9450 914% W.5% 95:6% 96.9% 95.1% 95.3%
0rysme**1 dum X - IVmpouwC 110% 7.2X 10% )0% 7.0%
0. 399 matWyrhm %-npvM 1 ].1Y 6.5% 52% 5.0% 6 .SY 3.6% 6 3%
Hrq. p~b8 tlun % J9% 31% 21% 20% 19% 4)% 210 AX A% A% 46% 20% 20% AY AX 41%
00665. amNfyMM59.7 1 f 15.6! 3 A .TJ S 11,71 3 20.06 S 19 9. 1 f 7 0. 6 f 21 .00 S 19.96 1 19.95 S 19.79 3 20.10 3 19.36 3 1993 S 1995 3 19.96 f 19.95
ewFq. nleYW Mlwp ~t S 1581 S 1911 S 1396 S 19.15 S 15 .03 f 16.n 3 16.9 3 3 16.65 3 16 .93 i 16.66 S 36.79 f 16.86 3 19.08 S 191 S 16 .96 $ 19.11
91MU199sI1w~Fr. I31tw1 30.9M 1] .WT 11 .]ri 19411 21.387 7435! 1190 MKS 418M 11.919 31 .95! 96.x16 19.198 91211 111418
Fti 9W tlYa~114 TY S.5] 4.19 3. ~.m 400 t60 600 1 4 4.00 4.00 4.00 40
556 W W W Fbv 31vf 10001 169 ]86 xR 59J 5,962 932 515 721 6x3 ],015 606 661 1,013 1 ,146 2.Ob
DIY Rp~6.9 .*Fiw' SN410001 151 65 51 96 366 2A 112 ]52 1.292 ]m 410 430 4Y! 1)16
DW : P019. ~ 90 %-1036- 10>Y 509X 11.1% 10 .5% 17.0% 6.0% 3000 10.0% 10.9% 9.0% •0% 90% 9.0% 9 .0%
T0W*-(0%) 493 461 313 669 1 .958 1,131 761 1,0)9 1, 1)4 4.506 1166 1.167 1,446 1.638 5 7. 20
VS90ld* 74d0wr 30 1.6 13 30 6.9 60 J.5 5.4 6.1 21,0 63 296
IwB avlp .t tl.R purtAetl .M ail 3 15.0] $ 11 .86 S 1418 S 16 .97 3 1546 3 10.32 6 10.02 S 1210 f 1170 S 11.56 f 92.7 0 S 12]0 3 12 .11 f 12.70 S 1271
%ONF PddWU WV SNn 31% 86% 61% 56% 51% 70% ]0% ]0% N% ]0% )U% 70% ]0% ]0% 00%
%DIY MU. . $01 20 Stowe ]1% 32% te% u% 19% ]0% ]0% ]0% JOY 3019 30% 10% 03% ]0% ]06
*467699MIm0 ) 4917 1.244 4473 5146 51190 3.931 9.545 10.369 11.n> 36,505 11059 3.166 16,096 56216
5098624.9¶ M9M smut 51 4.6 4] 5.0 S0 5A 51 1.2 51 52 51
4w InOM~ 9~ ~9q . 9 31.403( 1.1 46 45 J.1 ] 4 43 4.6 4.8 46 59. 4.9 5.1 50 4.6 42
X81 . tl1~8q + li~m1 2.9 .0 7J .t .0 129 14.8 50.8
.Ir. :re.v8wm menu .5% 16.5X 168% >e% A6X A.- . .% A.6% A.9Y 3x.1% 21.2% 2- 21 .91 21 .9%
%tlW 8MN1330 m M W. 1 J1% 42% 490 % SS4711 NYIII 50% :109. mY SOY 60%
1144llw mtlew maY6..0 1 160 f 160 S t .m 1 1 .6 3 l .m f m S l m. S l .m S S l .m 5 160 f !.m S 1 .00 3 160 f 1 .0
Xd tl4a WNw .e - ivdlyq 5e% s0 4ez 'A 469 52% s62 60% :184 box s82 50%
5w 6910580JP.a~(9216r) e5 E s 3 3s 5 3 T .3 s 0ex s Z13 s 0074 s T6 s S 09 s 0763 s 0.85 3 OH s 0 .66 3 0.6] s 527
9 065(06231.909! ~M106. 8 nw 1 .6 5 i 1 J 707 15 .2 60 D69 es 96 01. 9 ".I 2 _3 $us 312 u9 52 1
221825 02.14660404606 a61 06*1 s 096 S 0.82 3 00 1 f .n 3 02.2 1 0n S 0 .)5 s 0069 S D06 0 .)9 3 019 f 6-22 073 6 0 3 o o6x
4matls98u1d9e~g191~I.81 5 ( 04 0.5 0) 17 1 0 0 .8 0.8 O6 u 02 8 096 3
DwdalgluN 20694. MMrvr lSn+l) 11.9 4.0 2.2 to 65 19 11 3 1 3.0 10) 3.9 2.0 5.1 46 18)
idY ao8ldrErw~nw 163 106 9 .] 10 .5 49 .1 H9 1]6 31 .1 II.5 J. Zl6 M3 11 152 125 .0
FW797,061fmnl6.060 UrEtr 101 ].6 28 25 11 10.1 J.9 4.J 5.) 56 ).0 76 e.0 9.1 3 16
Fd76WM .l aF9*p0.C S 061 3 0.66 S .Sfi f 041 S 610 $ 090 3 045 S 055 S 05.0 1 0.60 6 6100S 0.00 3 050 3 0 .50
04910 n6 .5560 1 flu i 16]5 S 11023 S ).51 S 40 .]9 S ].65 S 6 .11 S 8.25 S 7.50 f ).m 3 3 )m. S ).
13 TJ 15 1.] 16 2m 06 5
42% J3% ]0% :1.0% 30% 300 4M 42
5. 0)( (0.726 (0800) (0 .721) (I % lSnn) (0)26) 10
.6 16 15 iE 41 46 l3 ).9 91 9 .1 1903 .9 u.T
62r0M0 y p0,.., .. .2.8IS16) J .2 29 1.9 45 121 41 5 103 27.3 9.0 1.5 9.0 11.5 390
MvMYp pragan m.V por .tlE rM S 23 .60 f .41 1 2601 S 17 .65 3 19.15 3 21421 f 15,1 f 23 0. 0 S x11.00 f 30 0. 0 3 24 ,5) S 30.00 S }I m S 30.00 3 )0.00 f 30 .00
Frw lMl9y~w.lsmnl 28 0.9 0.9 6.2 26 19. 30 ]0 04 15 2.1 2.6 J.9 11, 1
b1W 1Sdu WG dD 3 1912 1 9.00 1 6 .22 S 1119 S 10.92 f 946 S 8 00 S 6.65 3 e .)6 S 520 S 660 S 0.52 S 860 s 8.58 f 6 .60
Onrlwerglw lSrml 06 0.6 03 0.) 2.0 0 0.> 09 2.9 0.6 07 0.9 0.9 3. 1
.D pm.5 249lt 3 37 S 66] S 6 .21 S 121 3 1 1,134 Owly 3 311 f 356 S 2 .46 f 251 3 2. 10 s 7.96 3 3.36 3 2,00 3 24 1
SWal9a 69quW9m001p06860 ~W 3 SS f 4GA f 1646 1 )x .19 S X1.15 3 ]).16 1 ]5.44 f 0073 3 42.11 S 40 3 15759 3 40.60 f 41.72 S t m f X0.59 S 409 6
Taal wrlMln99q~r S7 l) 41 14 93 1.0 T.f 8 .1 9.1 141 tii I9] ti! 14]
5*1 * *143 Fw6660, mrprr/ n9 . 734614406.5x3 0162 Tnom9.0*!yew.163162.
7
Gordon Hodge 415 .364 .2575
Thomas Weisel Partners LLC
Thomas Weisel Partners
MERCHANT* BANKIN G
Champions of Growth
gut. t >, 2002
Media & Broadcasting NETFLIX, INC.-BUY
Gordon Hodge CHANNEL CHECKS ON BLOCKBUSTER'S TEST DVD
415364 .2575
Gmmln Nnrlgd (415j Y64 2575
Pn. 5lx.rrran DrN.rc
Is r mope. ecFpl vd cn>q Sn1, Ln (4 5, 3M ]1)5
YYE lL]I mm 2M ]9D}E mm
_ o~ v. 93•, wn ~Lm a32 9-- .9'-E ae _ WE P2E E -Ina- " Ye,.
svaenw werl
I.S TV ryrmm~nla (nw; M.2 tM.1 1051 lOS.fl iM.O Im .f. IOR.J IOR .R IMP tN .1 10) .J tn].5 101 .9 10e1 IM., IMA
r./nvn r.... .r:r.r . ),r,r) M) E.l )9R 3l.9 Y.9 <]R ,L] 51.5 .0 R1.3 M.3 R1 41.1 >0.1
U.M~Scp OVD lra usenSapa l/0+) 1 2p tW5] ILT 2t .9 2,? l1P1 2i.p ]Ow Sl.) i1.0 3L0 Y., 149 433 3 43 .7
.+. ATV R1 0.3% R,1 RA% .0% 0.)x ILR 0.5% BN% M1P% I .6% IJS 1 .%2
Netl4 avm8294,p res>in.%')gNDVG 22% t2% 1.0% 0% 1.2% %2 2% 225. 1.5 2.SY 1.8% 1.8% ].6Y 1 .9Y
6991 2559 .rpnel49101) d:m DYD 2]1 1913%% I .B1S 92%x 221% 21% 220 Ls 24% 25% 0 24% ,% 2 .61
fieq 04 248 rncen (mDl) tl 212 303 ID9 1N