Netflix (NFLX)

Risks Related to Our Stock Ownership

FACE="Times New Roman" SIZE="2">Our officers and directors and their affiliates will exercise significant control over Netflix.

As
of December 31, 2008, our executive officers and directors, their immediate family members and affiliated venture capital funds beneficially owned, in the aggregate, approximately 29% of our outstanding common stock and stock options that are
exercisable within 60 days. In particular, Jay Hoag, one of our directors, beneficially owned approximately 20% and Reed Hastings, our Chief Executive Officer, President and Chairman of the Board, beneficially owned approximately 6%. These
stockholders may have individual interests that are different from other stockholders and will be able to exercise significant influence over all matters requiring stockholder approval, including the election of directors and approval of significant
corporate transactions, which could delay or prevent someone from acquiring or merging with us.

Risks Related to Our Stock Ownership

FACE="Times New Roman" SIZE="2">Our officers and directors and their affiliates will exercise significant control over Netflix.

As
of December 31, 2008, our executive officers and directors, their immediate family members and affiliated venture capital funds beneficially owned, in the aggregate, approximately 29% of our outstanding common stock and stock options that are
exercisable within 60 days. In particular, Jay Hoag, one of our directors, beneficially owned approximately 20% and Reed Hastings, our Chief Executive Officer, President and Chairman of the Board, beneficially owned approximately 6%. These
stockholders may have individual interests that are different from other stockholders and will be able to exercise significant influence over all matters requiring stockholder approval, including the election of directors and approval of significant
corporate transactions, which could delay or prevent someone from acquiring or merging with us.

Risks Related to Our Stock Ownership

FACE="Times New Roman" SIZE="2">Our officers and directors and their affiliates will exercise significant control over Netflix.

As
of December 31, 2008, our executive officers and directors, their immediate family members and affiliated venture capital funds beneficially owned, in the aggregate, approximately 29% of our outstanding common stock and stock options that are
exercisable within 60 days. In particular, Jay Hoag, one of our directors, beneficially owned approximately 20% and Reed Hastings, our Chief Executive Officer, President and Chairman of the Board, beneficially owned approximately 6%. These
stockholders may have individual interests that are different from other stockholders and will be able to exercise significant influence over all matters requiring stockholder approval, including the election of directors and approval of significant
corporate transactions, which could delay or prevent someone from acquiring or merging with us.

Risks Related to Our Stock Ownership

FACE="Times New Roman" SIZE="2">Our officers and directors and their affiliates will exercise significant control over Netflix.

As
of December 31, 2007, our executive officers and directors, their immediate family members and affiliated venture capital funds beneficially owned, in the aggregate, approximately 31% of our outstanding common stock and stock options that are
exercisable within 60 days. In particular, Jay Hoag, one of our directors, beneficially owned approximately 23% and Reed Hastings, our Chief Executive Officer, President and Chairman of the Board, beneficially owned approximately 7%. These
stockholders may have individual interests that are different from other stockholders and will be able to exercise significant control over all matters requiring stockholder approval, including the election of directors and approval of significant
corporate transactions, which could delay or prevent someone from acquiring or merging with us.