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NFLX » Topics » Increases in payment processing fees would increase our operating expenses and adversely affect our results of operations.

This excerpt taken from the NFLX 10-K filed Mar 16, 2006.

Increases in payment processing fees would increase our operating expenses and adversely affect our results of operations.

 

Our subscribers pay for our subscription services predominately using credit cards and debit cards and, to a lesser extent, electronic checks. Our acceptance of these payment methods requires our payment of certain fees. From time to time, these fees may increase, either as a result of rate changes by the payment processing companies or as a result in a change in our business practices which increase the fees on a cost-per-transaction basis. These fees may increase in 2006. Such increase may adversely affect our results of operations.

 

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