SCOTTS VALLEY, Calif. – Nov. 11, 1998 – Innovative Promotions Underscore World’s Largest DVD Rental Store’s Commitment to
Customer Convenience and Value In preparation for an anticipated increase in holiday shopping activity based on the momentum
behind both DVD films and online shopping, NetFlix.com announced three promotions offering customers increased convenience
and value.
Starting immediately, all visitors to the world’s largest online DVD rental store at www.netflix.com will receive one free DVD movie
rental through a “Free DVD Rental” offer. Visitors can also save up to 45 percent on multiple rentals via an innovative “Flix Value
Pak” subscription feature.
Starting Nov. 19, NetFlix.com begins the “Countdown to 1999” with different holiday-themed films highlighted each week until Dec.
31. All three promotions are available to both existing and new customers.
“According to a recent study reported in USA Today, 43 percent of American computer users will likely shop on the Internet this
holiday season, a 330 percent increase over last year,” said Marc B. Randolph, NetFlix.com president. “By combining the world’s
largest inventory of DVD films available for rental with innovative promotions that save our customers money and time, NetFlix.com
aims to be the ultimate DVD movie destination this holiday season.”

Free DVD Rental

From Nov. 5 through Dec. 31, all visitors to NetFlix.com receive one free DVD rental that can be selected from the store’s
inventory of more than 2,200 titles. Customers may keep their free rental for the customary seven-day period of time, or purchase
the title through NetFlix.com’s “Like It? Keep It!” program. This offer is available to customers visiting the site for the first time,
including those redeeming a free rental offer through one of NetFlix.com’s partners, as well as to customers who are returning to
the site. Normal shipping and handling charges apply and the offer is not available on Reserve titles.

Flix Value Pak

Flix Value Paks allow customers to pay once for multiple rentals from NetFlix.com’s inventory, then enjoy those rentals any time
in the coming year, saving up to 45 percent on DVD rentals. NetFlix.com offers three Flix Value Paks to fit any budget:

— 10 Rental Flix Value Pak for $29.90 ($2.99 per DVD)

— 20 Rental Flix Value Pak for $49.60 ($2.48 per DVD)

— 30 Rental Flix Value Pak for $69.90 ($2.33 per DVD)

Countdown to 1999

This promotion will make renting holiday classics as easy as clicking a mouse. NetFlix.com will highlight various holiday-themed
movies on its home page each week beginning Nov. 19 and continuing until Dec. 31. The “Family Fun” category allows children of
all ages to enjoy animated films old and new, such as “How the Grinch Stole Christmas,” “An All Dogs Christmas Carol” or
“Beauty and the Beast: An Enchanted Christmas.”
“Classics” include tried-and-true favorites such as “It’s A Wonderful Life,” “The Nutcracker” and “A Christmas Carol.” Those in
need of a good laugh during the stressful holiday shopping season will enjoy the “Twisted Christmas” selections, “Beavis and
Butthead Do Christmas,” “National Lampoon’s Christmas Vacation” and “The Nightmare Before Christmas.”