NETFLIX, INC.

Netflix, Inc. is one of the world's leading entertainment services, offering TV series, films, games, and live programming across a wide variety of genres and languages. Members can play, pause, and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The company's core strategy is to grow its business globally within the parameters of its operating margin target. Netflix aims to continuously improve members' experience by offering compelling content and attracting new members. It offers a range of pricing plans, including an ad-supported subscription plan, to meet various consumer needs. Netflix seeks to drive conversation around its content and continuously enhances its user interface to help members more easily choose enjoyable content. The company operates as one operating segment. Its revenues are primarily derived from monthly membership fees for services related to streaming content to its members. The market for entertainment video is intensely competitive and subject to rapid change. Netflix competes with a broad set of activities for consumers' leisure time, including other entertainment video providers such as linear television, streaming entertainment providers (including those that provide pirated content), video gaming providers, and open content platform providers. It also competes against other sources of entertainment, such as social media. Additionally, Netflix competes against entertainment video providers and content producers in obtaining content for its service, both for licensed content and for original content projects.