Exhibit 99.1

FOR IMMEDIATE RELEASE	IR CONTACT:	Deborah Crawford
Monday, January 26, 2009		VP, Investor Relations
		408 540-3712
	PR CONTACT:	Steve Swasey
		VP, Corporate Communications
		408 540-3947

Netflix Announces Q4 2008 Financial Results

Subscribers – 9.4 million

Revenue – $359.6 million

GAAP Net Income – $22.7 million

GAAP EPS – $0.38 per diluted share

LOS GATOS, Calif., January 26, 2009 – Netflix, Inc. (Nasdaq: NFLX) today reported results for the fourth quarter and year ended December 31, 2008.

“Consumers embraced the Netflix experience in near record numbers last quarter” said Reed Hastings, Netflix co-founder and chief executive officer, “with growth in our core DVD offering and growing momentum with internet streaming.”

Fourth-Quarter and Fiscal-Year 2008 Financial Highlights

Subscribers. Netflix ended the fourth quarter of 2008 with approximately 9,390,000 total subscribers, representing 26 percent year-over-year growth from 7,479,000 total subscribers at the end of the fourth quarter of 2007 and 8 percent sequential growth from 8,672,000 subscribers at the end of the third quarter of 2008.

Net subscriber change in the quarter was an increase of 718,000 compared to an increase of 451,000 for the same period of 2007 and an increase of 261,000 for the third quarter of 2008.

Gross subscriber additions for the quarter totaled 2,085,000, representing 39 percent year-over-year growth from 1,495,000 gross subscriber additions in the fourth quarter of 2007 and 36 percent quarter-over-quarter growth from 1,528,000 gross subscriber additions in the third quarter of 2008.

Of the 9,390,000 total subscribers at quarter end, 98 percent, or 9,164,000, were paid subscribers. The other 2 percent, or 226,000, were free subscribers. Paid subscribers represented 98 percent of total subscribers at the end of the fourth quarter of 2007 and at the end of the third quarter of 2008.

Revenue for the fourth quarter of 2008 was $359.6 million, representing 19 percent year-over-year growth from $302.4 million for the fourth quarter of 2007, and a 5 percent sequential increase from $341.3 million for the third quarter of 2008. Revenue for fiscal 2008 was $1.365 billion, up 13 percent from $1.205 billion for fiscal 2007.

Gross margin¹ for the fourth quarter of 2008 was 35.2 percent compared to 33.8 percent for the fourth quarter of 2007 and 34.2 percent for the third quarter of 2008. Gross margin for fiscal 2008 was 33.3 percent compared to 34.8 percent for fiscal 2007.

GAAP net income for the fourth quarter of 2008 was $22.7 million, or $0.38 per diluted share compared to GAAP net income of $15.7 million, or $0.23 per diluted share, for the fourth quarter of 2007 and GAAP net income of $20.4 million, or $0.33 per diluted share, for the third quarter of 2008. GAAP net income grew 45 percent on a year-over-year basis and GAAP EPS grew 65 percent on a year-over-year basis.

GAAP net income for fiscal 2008 was $83.0 million, or $1.32 per diluted share compared to GAAP net income of $66.6 million, or $0.97 per diluted share, for fiscal 2007. GAAP net income grew 25 percent on a year-over-year basis and GAAP EPS grew 36 percent on a year-over-year basis.

Non-GAAP net income was $24.6 million, or $0.41 per diluted share, for the fourth quarter of 2008 compared to non-GAAP net income of $17.7 million, or $0.26 per diluted share, for the fourth quarter of 2007 and non-GAAP net income of $22.1 million, or $0.36 per diluted share, for the third quarter of 2008. Non-GAAP net income grew 39 percent on a year-over-year basis and non-GAAP EPS grew 58 percent on a year-over-year basis.

Non-GAAP net income was $90.7 million, or $1.44 per diluted share, for fiscal 2008 compared to non-GAAP net income of $73.8 million, or $1.07 per diluted share, for fiscal 2007. Non-GAAP net income grew 23 percent on a year-over-year basis and non-GAAP EPS grew 35 percent on a year-over-year basis.

Non-GAAP net income equals net income on a GAAP basis before stock-based compensation expense, net of taxes.

Stock-based compensation was $3.2 million for the fourth quarter of 2008 and the fourth quarter of 2007 and $3.0 million for the third quarter of 2008. Stock-based compensation for fiscal 2008 was $12.3 million compared to $12.0 million for fiscal 2007. Stock-based compensation is presented in the same lines of the Consolidated Statements of Operations as cash compensation paid to the same individuals.

Subscriber acquisition cost² for the fourth quarter of 2008 was $26.67 per gross subscriber addition compared to $34.58 for the same period of 2007 and $32.21 for the third quarter of 2008. SAC for fiscal 2008 was $29.12 per gross subscriber addition compared to $40.86 for fiscal 2007.

Churn³ for the fourth quarter of 2008 was 4.2 percent compared to 4.1 percent for the fourth quarter of 2007 and 4.2 percent for the third quarter of 2008. Churn includes free subscribers as well as paying subscribers who elect not to renew their monthly subscription service during the quarter.

Free cash flow⁴ for the fourth quarter of 2008 was $51.0 million compared to $21.1 million in the fourth quarter of 2007 and $26.2 million for the third quarter of 2008. Free cash flow for fiscal 2008 was $94.7 million compared to $45.9 million in fiscal 2007.

¹ Gross margin is defined as revenues less cost of subscription and fulfillment expenses divided by revenues.

² Subscriber acquisition cost is defined as the total marketing expense, which includes stock-based compensation for marketing personnel, on the Company’s Consolidated Statements of Operations divided by total gross subscriber additions during the quarter.

³ Churn is defined as customer cancellations in the quarter divided by the sum of beginning subscribers and gross subscriber additions, divided by three months.

⁴ Free cash flow is defined as cash provided by operating activities and investing activities excluding the non-operational cash flows from purchases and sales of short-term investments and cash flows from investment in business.

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Cash provided by operating activities for the fourth quarter of 2008 was $92.1 million compared to $87.6 million for the fourth quarter of 2007 and $60.5 million for the third quarter of 2008. Cash provided by operating activities for fiscal 2008 was $284.0 million compared to $277.4 million for fiscal 2007.

Stock Buyback

The Company also is announcing today that its Board of Directors has authorized a stock repurchase program for 2009. Based on the Board’s authorization, the Company anticipates a repurchase program of up to $175 million.

Stock repurchases under this program may be made through open market transactions and, from time to time, privately negotiated transactions with third parties, and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions. Repurchased shares would be returned to the status of authorized but un-issued shares of common stock.

Business Outlook

The Company’s performance expectations for the first quarter of 2009 and full-year 2009 are as follows:

First-Quarter 2009

• Ending subscribers of 10.1 million to 10.3 million

• Revenue of $387 million to $393 million

• GAAP net income of $15 million to $20 million

• GAAP EPS of $0.25 to $0.33 per diluted share

Full-Year 2009

• Ending subscribers of 10.6 million to 11.3 million

• Revenue of $1.58 billion to $1.635 billion

• GAAP net income of $88 million to $98 million

• GAAP EPS of $1.43 to $1.59 per diluted share

Float and Trading Plans

The Company estimates the public float at approximately 50,150,991 shares as of December 31, 2008, up slightly from 50,148,071 shares as of September 30, 2008, based on registered shares held in street name with the Depository Trust and Clearing Corporation. From time to time executive officers of Netflix may elect to buy or sell stock in Netflix. All open market sales by executive officers are made pursuant to the terms of 10b5-1 Trading Plans approved by the Company and generally adopted no less than three months prior to the first date of sale under such plan.

Earnings Call

The Netflix earnings call will be webcast today at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time, and may be accessed at http://ir.netflix.com. The call will consist of prepared remarks, followed by a Q&A with questions submitted via email. Please email your questions to dcrawford@netflix.com. The company will read the questions aloud on the call and respond to as many questions as possible.

Following completion of the call, a replay of the webcast will be available at http://ir.netflix.com. The telephone replay of the call will be available from approximately 5:00 p.m. Pacific Time on January 26, 2009 through midnight on January 29, 2009. To listen to a replay, call (719) 457-0820, access code 8834367.

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Use of Non-GAAP Measures

Management believes that non-GAAP net income is a useful measure of operating performance because it excludes the non-cash impact of stock option accounting. In addition, management believes that free cash flow is a useful measure of liquidity because it excludes the non-operational cash flows from purchases and sales of short-term investments, cash flows from investment in business and cash flows from financing activities. However, these non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net income and net cash provided by operating activities, or other financial measures prepared in accordance with GAAP. A reconciliation to the GAAP equivalents of these non-GAAP measures is contained in tabular form on the attached unaudited financial statements.

About Netflix

Netflix, Inc. (NASDAQ: NFLX) is the world’s largest online movie rental service, with more than nine million subscribers. For one low monthly price, Netflix members can get DVDs delivered to their homes and can instantly watch movies and TV episodes streamed to their TVs and PCs, all in unlimited amounts. Members can choose from over 100,000 DVD titles and a growing library of more than 12,000 choices that can be watched instantly. There are never any due dates or late fees. DVDs are delivered free to members by first class mail, with a postage-paid return envelope, from more than 55 distribution centers. More than 95 percent of Netflix members live in areas that generally receive shipments in one business day. Netflix is also partnering with leading consumer electronics companies to offer a range of devices that can instantly stream movies and TV episodes to members’ TVs from Netflix. For more information, visit http://www.netflix.com/.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our subscriber growth, revenue, GAAP net income and earnings per share for the first quarter of 2009 and the full-year 2009 as well as the anticipated size of our 2009 stock repurchase program. The forward-looking statements in this release are subject to risks and uncertainties that could cause actual results and events to differ, including, without limitation: our ability to attract new subscribers and retain existing subscribers, especially in the current uncertain economic environment; our ability to manage our subscriber acquisition cost as well as the cost of content delivered to our subscribers; fluctuations in consumer usage of our service; the deterioration of the U.S. economy and its affect on online commerce or the filmed entertainment industry; conditions that effect our delivery through the U.S. Postal Service, including regulatory changes and postal rate increases; changes in the costs of acquiring DVDs or electronic content; customer spending on DVDs and related products; disruption in service on our website or with our computer systems; competition and widespread consumer adoption of different modes of viewing in-home filmed entertainment and, with respect to the stock repurchase program, changes in cash flows, cash balances, economic and market conditions, stock price and additional Board action. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2008. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

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Netflix, Inc.

Consolidated Statements of Operations

(unaudited)

(in thousands, except per share data)

	Three Months Ended									Twelve Months Ended
	December 31, 2008			September 30, 2008			December 31, 2007			December 31, 2008			December 31, 2007
Revenues	$	359,595		$	341,269		$	302,355		$	1,364,661		$	1,205,340
Cost of revenues:
Subscription		193,635			186,573			168,673			761,133			664,407
Fulfillment expenses *		39,211			37,923			31,377			149,101			121,761
Total cost of revenues		232,846			224,496			200,050			910,234			786,168
Gross profit		126,749			116,773			102,305			454,427			419,172
Operating expenses:
Technology and development *		24,052			23,368			18,453			89,873			70,979
Marketing *		55,617			49,217			51,704			199,713			218,212
General and administrative *		10,762			11,742			13,570			49,662			52,404
Gain on disposal of DVDs		(1,603	)		(1,628	)		(1,696	)		(6,327	)		(7,196	)
Gain on legal settlement		—			—			—			—			(7,000	)
Total operating expenses		88,828			82,699			82,031			332,921			327,399
Operating income		37,921			34,074			20,274			121,506			91,773
Other income (expense):
Interest expense on lease financing obligations		(677	)		(677	)		(295	)		(2,458	)		(1,188	)
Interest and other income (expense)		852			1,536			4,929			12,452			20,340
Income before income taxes		38,096			34,933			24,908			131,500			110,925
Provision for income taxes		15,364			14,562			9,217			48,474			44,317
Net income	$	22,732		$	20,371		$	15,691		$	83,026		$	66,608
Net income per share:
Basic	$	0.39		$	0.34		$	0.24		$	1.36		$	0.99
Diluted	$	0.38		$	0.33		$	0.23		$	1.32		$	0.97
Weighted average common shares outstanding:
Basic		58,906			60,408			65,156			60,961			67,076
Diluted		60,311			62,272			67,042			62,836			68,902
*       Stock-based compensation included in expense line items:
Fulfillment expenses	$	126		$	126		$	100		$	466		$	427
Technology and development		1,095			950			1,105			3,890			3,695
Marketing		462			460			561			1,886			2,160
General and administrative		1,511			1,499			1,476			6,022			5,694
Reconciliation of Non-GAAP Financial Measures
(unaudited)
Non-GAAP net income reconciliation:
GAAP net income	$	22,732		$	20,371		$	15,691		$	83,026		$	66,608
Stock-based compensation		3,194			3,035			3,242			12,264			11,976
Income tax effect of stock-based compensation		(1,287	)		(1,266	)		(1,200	)		(4,585	)		(4,760	)
Non-GAAP net income	$	24,639		$	22,140		$	17,733		$	90,705		$	73,824
Non-GAAP net income per share:
Basic	$	0.42		$	0.37		$	0.27		$	1.49		$	1.10
Diluted	$	0.41		$	0.36		$	0.26		$	1.44		$	1.07
Weighted average common shares outstanding:
Basic		58,906			60,408			65,156			60,961			67,076
Diluted		60,311			62,272			67,042			62,836			68,902

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Netflix, Inc.

Consolidated Balance Sheets

(unaudited)

(in thousands, except share and par value data)

	As of
	December 31, 2008			December 31, 2007*
Assets
Current assets:
Cash and cash equivalents	$	139,881		$	177,439
Short-term investments		157,390			207,703
Prepaid expenses		8,122			6,116
Prepaid revenue sharing expenses		18,417			6,983
Current content library, net		18,691			16,301
Deferred tax assets		5,617			2,254
Other current assets		13,329			15,627
Total current assets		361,447			432,423
Content library, net		98,547			112,070
Property and equipment, net		124,948			113,175
Deferred tax assets		22,409			16,865
Other assets		10,595			4,465
Total assets	$	617,946		$	678,998
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	100,344		$	99,951
Accrued expenses		31,394			36,466
Current portion lease financing obligations		1,152			823
Deferred revenue		83,127			71,665
Total current liabilities		216,017			208,905
Lease financing obligations, excluding current portion		37,988			35,652
Other liabilities		16,786			4,629
Total liabilities		270,791			249,186
Stockholders’ equity:
Common stock, $0.001 par value; 160,000,000 shares authorized at December 31, 2008 and December 31, 2007; 58,862,478 and 64,912,915 issued and outstanding at December 31, 2008 and December 31, 2007, respectively		62			65
Additional paid-in capital		338,577			402,710
Treasury stock at cost (3,491,084 shares)		(100,020	)		—
Accumulated other comprehensive income		84			1,611
Retained earnings		108,452			25,426
Total stockholders’ equity		347,155			429,812
Total liabilities and stockholders’ equity	$	617,946		$	678,998

* Certain amounts have been reclassified for the change in the accounting for the streaming content portion of our content library.

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Netflix, Inc.

Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

	Three Months Ended									Twelve Months Ended
	December 31, 2008			September 30, 2008*			December 31, 2007*			December 31, 2008			December 31, 2007*
Cash flows from operating activities:
Net income	$	22,732		$	20,371		$	15,691		$	83,026		$	66,608
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and intangibles		9,141			8,643			6,162			32,454			22,219
Amortization of content library		47,579			47,596			54,751			209,757			203,415
Amortization of discounts and premiums on investments		185			122			72			623			24
Stock-based compensation expense		3,193			3,035			3,242			12,263			11,976
Excess tax benefits from stock-based compensation		(753	)		(1,093	)		(4,984	)		(5,220	)		(26,248	)
Loss (gain) on disposal of property and equipment		—			(1	)		14			101			142
Loss (gain) on sale of short-term investments		618			494			(323	)		(3,130	)		(687	)
Gain on disposal of DVDs		(3,494	)		(3,205	)		(2,906	)		(13,350	)		(14,637	)
Deferred taxes		(1,172	)		(3,894	)		342			(8,427	)		(893	)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		11,038			(7,022	)		(816	)		(4,181	)		(3,893	)
Content library		(11,123	)		(5,773	)		(15,348	)		(48,290	)		(34,821	)
Accounts payable		(7,917	)		(744	)		15,091			7,111			16,555
Accrued expenses		171			4,730			(567	)		(1,823	)		32,809
Deferred revenue		17,232			(1,989	)		15,344			11,464			1,987
Other assets and liabilities		4,670			(775	)		1,842			11,659			2,868
Net cash provided by operating activities		92,100			60,495			87,607			284,037			277,424
Cash flows from investing activities:
Purchases of short-term investments		(76,118	)		(22,950	)		(35,228	)		(256,959	)		(405,340	)
Proceeds from sale of short-term investments		59,723			50,609			35,453			307,333			200,832
Purchases of property and equipment		(7,471	)		(9,226	)		(9,863	)		(43,790	)		(44,256	)
Acquisition of intangible asset		—			(62	)		(550	)		(1,062	)		(550	)
Acquisitions of content library		(38,295	)		(28,828	)		(59,505	)		(162,849	)		(208,647	)
Proceeds from sale of DVDs		4,695			3,787			3,884			18,368			21,640
Investment in business		—			—			—			(6,000	)		—
Other assets		(32	)		3			(482	)		(1	)		297
Net cash used in investing activities		(57,498	)		(6,667	)		(66,291	)		(144,960	)		(436,024	)
Cash flows from financing activities:
Principal payments of lease financing obligations		(237	)		(234	)		(100	)		(823	)		(390	)
Proceeds from issuance of common stock		3,231			2,576			5,745			18,873			9,611
Excess tax benefits from stock-based compensation		753			1,093			4,984			5,220			26,248
Repurchases of common stock		(9,992	)		(90,028	)		(34,310	)		(199,905	)		(99,860	)
Net cash used in financing activities		(6,245	)		(86,593	)		(23,681	)		(176,635	)		(64,391	)
Net increase (decrease) in cash and cash equivalents		28,357			(32,765	)		(2,365	)		(37,558	)		(222,991	)
Cash and cash equivalents, beginning of period		111,524			144,289			179,804			177,439			400,430
Cash and cash equivalents, end of period	$	139,881		$	111,524		$	177,439		$	139,881		$	177,439
Non-GAAP free cash flow reconciliation:
Net cash provided by operating activities	$	92,100		$	60,495		$	87,607		$	284,037		$	277,424
Purchases of property and equipment		(7,471	)		(9,226	)		(9,863	)		(43,790	)		(44,256	)
Acquisition of intangible asset		—			(62	)		(550	)		(1,062	)		(550	)
Acquisitions of content library		(38,295	)		(28,828	)		(59,505	)		(162,849	)		(208,647	)
Proceeds from sale of DVDs		4,695			3,787			3,884			18,368			21,640
Other assets		(32	)		3			(482	)		(1	)		297
Non-GAAP free cash flow	$	50,997		$	26,169		$	21,091		$	94,703		$	45,908

* Certain amounts have been reclassified for the change in the accounting for the streaming content portion of our content library.

7

Netflix, Inc.

Consolidated Other Data

(unaudited)

(in thousands, except percentages, average monthly revenue per paying subscriber and subscriber acquisition cost)

	As of / Three Months Ended
	December 31, 2008			September 30, 2008			December 31, 2007
Subscriber information:
Subscribers: beginning of period		8,672			8,411			7,028
Gross subscriber additions: during period		2,085			1,528			1,495
Gross subscriber additions year-to-year change		39.5	%		17.8	%		0.1	%
Gross subscriber additions quarter-to-quarter sequential change		36.5	%		10.4	%		15.3	%
Less subscriber cancellations: during period		(1,367	)		(1,267	)		(1,044	)
Subscribers: end of period		9,390			8,672			7,479
Subscribers year-to-year change		25.6	%		23.4	%		18.4	%
Subscribers quarter-to-quarter sequential change		8.3	%		3.1	%		6.4	%
Free subscribers: end of period		226			182			153
Free subscribers as percentage of ending subscribers		2.4	%		2.1	%		2.0	%
Paid subscribers: end of period		9,164			8,490			7,326
Paid subscribers year-to-year change		25.1	%		24.0	%		19.0	%
Paid subscribers quarter-to-quarter sequential change		7.9	%		3.1	%		7.0	%
Average monthly revenue per paying subscriber	$	13.58		$	13.60		$	14.22
Churn		4.2	%		4.2	%		4.1	%
Subscriber acquisition cost	$	26.67		$	32.21		$	34.58
Margins:
Gross margin		35.2	%		34.2	%		33.8	%
Operating margin		10.5	%		10.0	%		6.7	%
Net margin		6.3	%		6.0	%		5.2	%
Expenses as percentage of revenues:
Technology and development		6.7	%		6.8	%		6.1	%
Marketing		15.5	%		14.4	%		17.1	%
General and administrative		3.0	%		3.4	%		4.5	%
Gain on disposal of DVDs		(0.5	%)		(0.4	%)		(0.5	%)
Total operating expenses		24.7	%		24.2	%		27.2	%
Year-to-year change:
Total revenues		18.9	%		16.1	%		9.1	%
Fulfillment expenses		25.0	%		23.3	%		17.2	%
Technology and development		30.3	%		29.0	%		40.9	%
Marketing		7.6	%		0.1	%		(21.8	%)
General and administrative		(20.7	%)		(8.7	%)		22.1	%
Gain on disposal of DVDs		(5.5	%)		(29.5	%)		30.1	%
Total operating expenses		8.3	%		6.3	%		(7.9	%)

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