NFLX » Topics » We intend to rely on a number of partners to deliver our Internet delivered content to various devices.

These excerpts taken from the NFLX 10-K filed Feb 28, 2008.

We intend to rely on a number of partners to deliver our Internet delivered content to various devices.

We currently offer Internet delivered content only to PCs. We intend to broaden the distribution capability of our instant-watching feature to other platforms and partners over time. In January 2008, we announced our development arrangement with LG Electronics. While the terms of this arrangement have not been finalized, we anticipate developing, in conjunction with LG, a set-top box device that will enable our instant-watching feature to be viewed directly through subscribers’ televisions. We intend to enter other deals with additional partners for distribution of our content to various devices. If we are not successful in creating these relationships, or if we encounter technological, content licensing or other impediments, our ability to grow our instant-watching feature could be adversely impacted.

We intend to rely on a number of partners to deliver our Internet delivered content to various devices.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">We currently offer Internet delivered content only to PCs. We intend to broaden the distribution capability of our instant-watching feature to other
platforms and partners over time. In January 2008, we announced our development arrangement with LG Electronics. While the terms of this arrangement have not been finalized, we anticipate developing, in conjunction with LG, a set-top box device that
will enable our instant-watching feature to be viewed directly through subscribers’ televisions. We intend to enter other deals with additional partners for distribution of our content to various devices. If we are not successful in creating
these relationships, or if we encounter technological, content licensing or other impediments, our ability to grow our instant-watching feature could be adversely impacted.

FACE="Times New Roman" SIZE="2">If we experience increased demand for titles which we are unable to offset with increased subscriber retention or operating margins, our operating results may be adversely affected.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">With our unlimited plans, there is no established limit to the number of movies that subscribers may rent on DVD or, as we recently announced, watch
through our instant-watching feature. We are continually adjusting our service in ways that may impact subscriber movie usage. Such adjustments include new Web site features and merchandising practices, computer-based instant watching of select
titles through our instant-watching feature, an expanded DVD distribution network and software and process changes. In addition, demand for titles may increase for a variety of reasons beyond our control, including promotion by studios and seasonal
variations or shifts in consumer movie watching.

If our subscriber retention does not increase or our operating margins do not improve to
an extent necessary to offset the effect of any increased operating costs associated with increased usage, our operating results will be adversely affected. In addition, our subscriber growth and retention may be adversely affected if we attempt to
alter our service or increase our monthly subscription fees to offset any increased costs of acquiring or delivering titles.

 


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EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 28, 2008
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