Netflix

Exhibit 1: Netflix Income Statement

($ in millions)

1997 1998 1999 2000 2001 2002 2003

Revenue - 1.30 5.00 35.90 75.90 152.80 270.40
Cost of Goods Sold - 1.30 7.40 37.40 63.90 98.60 180.40
Gross Profit - - (2.40) (1.50) 12.00 54.20 90.00
Gross Profit margin, % #DIV/0! 0.0% -48.0% -4.2% 15.8% 35.5% 33.3%

Selling General & Admin Exp. 0.8 6.2 19.0 36.4 29.5 47.3 64.9
Stock-Based Compensation - 1.2 - - - - -
R&D Exp. 0.3 3.9 8.6 19.6 19.6 17.6 21.9
Other Operating Expense/(Income) - - - - - - (1.2)
Other Operating Exp. Total 1.1 11.3 27.6 56.0 49.1 64.9 85.6

Operating Income (1.1) (11.3) (30.0) (57.5) (37.1) (10.7) 4.4

Net Interest Exp. - - 0.2 0.2 (1.4) 0.4 5.3

Other Non-Operating Inc. (Exp.) - 0.1 - - - - (3.3)

EBT Excl. Unusual Items (1.1) (11.1) (29.8) (57.4) (38.5) (10.2) 6.5

EBT Incl. Unusual Items (1.1) (11.1) (29.8) (57.4) (39.2) (20.9) 6.5

Income Tax Expense - - - - - - -

Net Income (1.1) (11.1) (29.8) (57.4) (39.2) (20.9) 6.5

 .
2004 2005 2006 2007 2008 2009 2010 .
500.60 682.20 996.70 1,205.30 1,364.70 1,670.30 2,162.60 .
331.70 465.80 627.00 786.20 910.20 1,079.30 1,357.40 .
168.90 216.40 369.70 419.10 454.50 591.00 805.20 .
33.7% 31.7% 37.1% 34.8% 33.3% 35.4% 37.2%
.
122.6 171.9 261.4 270.6 249.4 286.6 358.3
- - - - - - -
29.5 35.4 47.8 71.0 89.9 114.5 163.3
(2.6) (2.0) (4.8) (7.2) (6.3) - -
149.5 205.3 304.4 334.4 333.0 401.1 521.6

19.4 11.1 65.3 84.7 121.5 189.9 283.6

2.4 5.8 14.8 18.5 6.7 (1.6) (15.9)

- (0.5) (0.1) - 0.1 - -

21.8 16.4 79.9 103.2 128.4 188.2 267.7

21.8 8.3 79.9 110.9 131.5 192.2 267.7

0.2 (33.7) 31.1 44.3 48.5 76.3 106.8

21.6 42.0 48.8 66.6 83.0 115.9 160.9 .

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Blockbuster Inc. Income Statement
Exhibit 3
($ in millions)

1996 1997 1998 1999 2000 2001 2002

Revenue 2,942.1 3,313.6 3,893.4 4,463.5 4,960.1 5,156.7 5,565.9
Cost of Goods Sold 1,013.7 1,360.5 1,956.4 1,762.5 2,036.0 2,224.8 2,358.7
Gross Profit 1,928.4 1,953.1 1,937.0 2,701.0 2,924.1 2,931.9 3,207.2
Gross Profit margin, % 65.5% 58.9% 49.8% 60.5% 59.0% 56.9% 57.6%

Selling General & Admin Exp. 1,278.9 1,753.2 1,913.3 2,187.0 2,391.0 2,477.4 2,618.7
R&D Exp. - - - -
Depreciation & Amort. 165.5 208.7 212.7 220.5 247.4 244.0 239.1
Amort. Of Goodwill and Intangibles 166.2 168.7 170.2 171.8 180.1 177.1 1.7
Other Operating Expense/(Income) - - - -
Other Operating Exp. Total 1,610.6 2,130.6 2,296.2 2,579.3 2,818.5 2,898.5 2,859.5

Operating Income 317.8 (177.5) (359.2) 121.7 105.6 33.4 347.7

Net Interest Exp. (18.4) (27.1) (23.7) (116.1) (109.2) (72.1) (45.4)
Income/(Loss) from Affiliates (4.0) (18.9) (1.3) (2.8) 1.3 0.5 (2.2)
Currency Exchange Gains (Loss) - 8.0 - - - - -
Other Non-Operating Inc. (Exp.) - (0.5) (1.3) (0.2) 1.7 (1.0) 2.9
EBT Excl. Unusual Items 295.4 (216.0) (385.5) 2.6 (0.6) (39.2) 303.0
 .
2003 2004 2005 2006 .
5,911.7 5,932.5 5,721.8 5,522.2 .
2,389.8 2,378.7 2,561.0 2,481.0 .
3,521.9 3,553.8 3,160.8 3,041.2 .
59.6% 59.9% 55.2% 55.1%
.
2,785.3 3,042.5 2,964.9 2,728.9

268.4 247.3 224.3 210.9

- - - -

3,053.7 3,289.8 3,189.2 2,939.8

468.2 264.0 (28.4) 101.4

(30.0) (34.5) (94.6) (91.7)

(0.7) - - -
- - - -
(0.4) 1.6 (4.2) 1.0
437.1 231.1 (127.2) 15.1