This spreadsheet supports STUDENT analysis of the case Netflix, Inc.: The Customer Strikes Back (UVA-M-0834).

This spreadsheet was prepared by Rajkumar Venkatesan, Bank of America Research Associate Professor of Business Administration. Copyright 2015 by the University of Virginia
Darden School Foundation, Charlottesville, VA. All rights reserved. For customer service inquiries, send an e-mail tosales@dardenbusinesspublishing.com. No part of this publication
may be reproduced, stored in a retrieval system, posted to the Internet, or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwise
without the permission of the Darden School Foundation.
Dec. 7, 2015

Revenues

Cost of subscription
Fulfillment expenses
Technology and development
Paid subscribers: end of period
Paid subscribers: end of last period
Number of paid subscribers
Gross subscriber additions
Cost of revenues
Subscriber acquisition cost (domestic after March 2011)

Mar-01
17,057
9,476
2,886
3,857

303
186
$
$

12,362
25.15

Market capitalization
Share price
Outstanding shares
Margin
Retention Rate
Retention Rate(%)
CLV

15
117.500

0.12

NETFLIX, INC.: THE CUSTOMER STRIKES BACK

Data for Calculating Customer Lifetime Value
All values in thousands except margin per subscriber and subscriber acquisition cost.

Jun-01
18,359 $

Sep-01
18,878 $

10,776
3,589
4,896

306
88
$
$

9,667
3,283
4,463

315
107
14,365 $
46.48 $

13
218.000
0.8553191489
55.2

Dec-01
21,618 $
14,811
3,785
4,802

456
186
12,950 $
32.19 $

19
208.000
-0.0458715596
18.1

Mar-02
30,527 $
14,872
4,155
3,181

17,779
4,854
3,518

562
312
18,596 $
33.24 $

7
270.500
0.3004807692
9.1

Jun-02
36,360

598
236
19,027 $
25.44 $

22,633
34.13

302,016
13.99
21,588

20
250.000
-0.0757855823
19.2

23
362.000
0.448
38.3

scriber acquisition cost.

Sep-02
40,731 $

Dec-02
45,188 $

21,147
4,908
3,966
708
633
671
277

23,246
5,449
3,960

857
315

Mar-03
55,669 $
29,928
6,383
4,183

$
$

26,055 $
33.57 $

28,695 $
33.31 $

1,009
417
36,311 $
31.67 $

214,069 $
9.70
22,069

247,130 $
11.01
22,446

467,582 $
20.35
22,977

22
394.000
0.0883977901
23.7

19
542.000
0.3756345178
29.0

19
592.000
0.0922509225
20.9

Jun-03
63,187 $
35,148
7,221
4,123

Sep-03
72,202
38,326
8,322
4,738

1,055
327
42,369 $
30.45 $

1,172
383
46,648
31.81

612,152 $
25.55
23,959

813,092
33.56
24,228

20
728.000
0.2297297297
24.8

22
789.000
0.0837912088
23.6

Dec-03
81,185 $

$
$

44,334
9,348
4,840
1,416
1,242
1,224
444
53,682 $
32.89 $

1,631
760
67,234 $
35.12 $

1,933
583
83,977 $
35.12 $

2,080
590
79,452 $
38.18 $

2,308
783
99,347
49.39

1,354,507 $
54.69
24,767

1,758,750 $
34.12
51,546

1,876,356 $
36.00
52,121

806,512 $
15.42
52,303

650,186
12.33
52,732

22
780.000
-0.0114068441
22.2

Mar-04
100,370 $
56,444
10,790
5,039

20
871.000
0.1166666667
22.7

Jun-04
120,321 $
69,604
14,373
5,652

19
1,350.000
0.5499425947
36.9

Sep-04
141,644 $
71,130
8,322
4,738

30
1,490.000
0.1037037037
33.0

Dec-04
138,276
76,223
23,124
7,477

17
1,525.000
0.0234899329
17.2

Mar-05
152,446 $
93,986
16,694
7,155

$
$
$

Jun-05
164,027 $
99,957
17,560
7,513

Sep-05
172,740 $
97,878
15,013
6,325

Dec-05
193,000 $
101,967
21,495
9,949

Mar-06
224,126
126,220
22,045
11,206

2,687
945
110,680 $
37.89 $

2,998
707
117,517 $
37.25 $

3,266
921
112,891 $
35.69 $

3,725
1,156
123,462 $
49.59 $

4,380
1,377
148,265
38.47

574,670 $
10.85
52,965

876,721 $
16.41
53,426

1,402,472 $
25.99
53,962

1,481,697 $
27.06
54,756

1,609,235
28.99
55,510

16
1,742.000
0.142295082
17.8

16
2,291.000
0.3151549943
21.6

18
2,345.000
0.0235704932
18.7

19
2,569.000
0.0955223881
20.4

17
3,003.000
0.1689373297
20.4

Jun-06
239,351 $
128,605
21,974
12,043

$
$
$

4,876
1,070
150,579 $
43.95 $
1,848,566 $
27.21
67,937
18
3,806.000
0.2673992674
23.9

Shively,
Daniel:
Sep-06
Dec-06
Shively,
Daniel:
total
domestic
from
255,950 shareholder
$total cost of
277,233
$
letter

135,210
23,583
8,955

revenue from
Shively,
financialsDaniel:
total
cost Daniel:
of
142,586
Shively,
revenue
from
total
cost
of
26,762
Shively, Daniel:
financials
revenue
from
from quarterly
16,175
Shively,
financialsDaniel:
shareholder
letter
from quarterly
shareholder letter
Shively, Daniel:
from quarterly
5,823 letter
shareholder
Shively, Daniel:

5,253
1,310
1,493
from quarterly
shareholder
letter
158,793 $
169,348
$
45.32 $
61.66 $
1,552,548 $
22.78
68,154
18
3,943.000
0.0359957961
19.1

1,774,306 $
25.86
68,612
19
4,330.000
0.0981486178
20.3

Mar-07
305,320 $

Jun-07
303,693

165,189
29,783
15,715
6,676
6,154
6,415
1,520
194,972 $
47.46 $

166,838
29,855
18,907
6,609

1,594,591 $
23.19
68,762

1,311,501
19.39
67,638

17
4,895.000
0.1304849885
19.5

6,643
1,028
196,693
44.02

16
5,615.000
0.1470888662
18.5

$
$
$

Sep-07
293,972 $

Dec-07
302,355 $

163,707
30,746
18,216
6,845

168,673
31,377
18,557
7,326

6,727
1,297
194,453 $
37.91 $
1,727,984 $
26.62
64,913
15
5,430.000
-0.0329474622
14.4

Jun-08
337,614 $

Sep-08
341,269

187,156
35,649
20,516
8,102

193,769
36,318
22,670
8,235

186,573
37,923
23,368
8,490

7,086
1,495
200,050 $
34.60 $

7,714
1,862
222,805 $
29.50 $

8,169
1,384
230,087 $
28.95 $

8,363
1,528
224,496
32.21

1,727,984 $
26.62
64,913.00

2,132,708 $
34.65
61550.00

1,614,020 $
26.07
61,911

1,825,626
30.88
59,120

14
5,590.500
0.029558011
14.8

Mar-08
326,183 $

13
5,852.000
0.0467757803
14.0

13
6,784.500
0.1593472317
15.3

14
6,834.500
0.0073697398
14.1

$
$
$

Dec-08
359,595 $

Mar-09
394,098 $

Jun-09
408,509 $

Sep-09
423,120 $

Dec-09
444,542

193,635
39,211
24,052
9,164

215,299
43,969
24,200
10,116

224,858
44,385
27,119
10,375

233,091
42,183
30,014
10,835

231,598
43,888
33,209
11,892

8,827
2,085
232,846 $
26.67 $

9,640
2,413
259,268 $
25.79 $

10,246
1,936
269,243 $
23.88 $

10,605
2,180
275,274 $
26.86 $

11,364
2,803
275,486
25.23

1,759,385 $
29.89
58,862

2,510,605 $
42.92
58,495

2,373,577 $
41.34
57,416

2,522,867 $
46.17
54,643

14
6,742.000
-0.0135342746
14.2

14
7,227.000
0.0719371106
14.9

14
8,309.500
0.1497855265
15.7

14
8,425.000
0.0138997533
14.1

2,944,010
55.09
53,440
15
8,560.500
0.0160830861
15.1

$
$
$

Mar-10
493,665 $

Jun-10
519,819 $

Sep-10
553,219 $

Dec-10
595,922

259,560
47,602
37,399
13,622

265,387
49,547
37,863
14,577

12,757
3,492
307,162 $
21.54 $

14,100
3,059
314,934 $
24.37 $

292,406
52,063
42,108
15,863
14,577
15,220
4,101
344,469 $
19.81 $

336,756
54,034
45,959
18,268
15,863
17,066
5,649
390,790
11.13

3,853,800 $
73.74
52,262

5,688,697 $
108.65
52,358

8,473,995 $
162.16
52,257

9,273,797
175.7
52,782

15
9,265.000
0.0822965948
15.8

15
11,040.500
0.1916351862
17.5

14
11,119.000
0.0071101852
13.8

12
11,416.500
0.0267560032
12.3

Mar-11
706,274 $

Jun-11
769,714 $

Sep-11
799,152 $

Dec-11
846,587

$
$

376,992
61,159
50,905
21,405
18,268
19,837
6,299
438,151 $
14.38 $

428,203
61,775
57,865
23,263
21,405
22,334
5,315
489,978 $
15.09 $

471,823
64,794
69,480
22,843
23,263
23,053
4,714
536,617 $
15.25 $

512,578
62,577
80,783
24,395
22,843
23,619
5,216
575,155
15.62

12,487,968 $
237.78
52,519

13,800,682 $
262.69
52,536

5,947,128 $
113.27
52,504

3,838,597
69.29
55,399

14
13,537.500
0.1857837341
16.2

13
17,019.000
0.2571745152
16.3

11
18,339.000
0.0775603737
12.2

11
18,403.000
0.0034898304
11.5