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The Brill Report Richard Brill Publisher and Editor in Chief

By Richard Brill

Today is

Thursday, October 02, 2003

No Due Dates! Over 15,000 Titles! No Commitments! Cancel Anytime.

TCF.NET EDITORS PICK

Why would Movie Junkies want to waste hours Downloading video over the internet, via P2Ps controversial internet web sites, run the risk of downloading a Trojan horse when they can Over dose on the best movie for as little as $13.99 a month?

Congratulations NETFLIX! and Happy 4 year Birthday!

While many companies are weeping over fantasy get rich quick dot com ventures, NetFlix the world's largest online movie rental service created an Online business model that actually works. The bricks and mortars companies like Wal-Mart are proceeding with caution. Wal-Mart recently entered into the market with similar offering however NetFlix is many steps ahead. NetFlix excellent Word of mouth and service is hard to beat even for a colossal giant like Wal-Mart. In addition entering into this market on friendly terms gives Wal-Mart an additional revenue stream with higher profit margins.

It’s a Straightforward policy for NetFlix, Provide a large selection of DVDs, Charge no late fees, Include fast free shipping, and permit users to do this from the comfort and privacy of their home.

NetFlix uses over 20 efficient shipping centers nationwide shipping anywhere from 5,000 and 30,000 discs a day. Compared to Wal-Mart’s bloated 7 centers. Send back the DVD in a NetFlix postage-paid envelope and the next batch is in your box in around 3 days.

Have any doubts. Check out their financial. NetFlix Third Quarter 2003 Subscribers are now 1,291,000, Up 74% Over The Prior Year. Projected sales $1 billion in annual revenue, 5 million subscribers by 2003

Consumer electronic is a hot sector of entertainment market with DVD rentals to the tune of about 8 billion a year.

Approximately 6 out of every 10 U.S. homes own and use a standalone DVD player. TCF.NET EDITORS PICK

Pricing Levels:

$13.95 Four DVDs a month, two (2) titles out at a time
$19.95 Unlimited DVDs, three (3) titles out at a time
$29.95 Unlimited DVDs, five (5) titles out at a time
$39.95 Unlimited DVDs, eight (8) titles out at a time

About NetFlix

NetFlix (Nasdaq: NFLX) is the world's largest online DVD movie rental service offering more than one million members access to more than 15,000 titles. Our appeal and success are built on providing the most expansive selection of DVDs, an easy way to choose movies and fast, free delivery.

For $19.95 a month members rent as many DVDs as they want and keep them as long as they want, with three movies out at a time. Members enjoy free and fast delivery. We reach more than half of our subscribers with next-day delivery and provide free, pre-paid return envelopes. With no commitments, members can cancel anytime. Our "no late fees, no due dates" online movie rental model has eliminated the hassle involved in choosing, renting and returning movies.

New members can try NetFlix for free by visiting netflix.com.

Largest Selection of DVDs
Our selection - far superior to what the largest movie-rental stores can offer - helps ensure members find everything from the latest big Hollywood releases to hard-to-locate documentaries and independent films.

Better Movie Choices
We make it easier for members to find and discover movies they will enjoy. When members rate movies, NetFlix customizes its site based on a member's movie tastes helping make 15,000 titles relevant and accessible. Members rented 97 percent of NetFlix movie titles in January 2003, proving the efficiency with which the company recommends films.

Fast and Free Delivery
Members enjoy free shipping both ways, with more than 50 percent of members reached by generally next-day service. NetFlix operates 18 shipping centers - key to providing overnight delivery - and plans to open more throughout the country in 2003. By the end of 2003, 75 percent of NetFlix members will get generally next-day service.

NetFlix launched its movie rental service in 1999 with the goal of using the DVD format and the Internet to make it easier for people to find and get movies they will appreciate. As a result, our members can reliably discover and enjoy lesser-known titles. As we succeed, more people are watching more films, and filmmakers are reaching a larger audience for their creations. In turn, we believe they will produce more new films. We want to become the world's largest and most influential movie supplier.

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