Answer Question

Please read the following sections of the Netflix, Inc 2015 10-K Annual Report (attached):  Items 1 (Business), 1A (Risk Factors) & pgs 17-23 of Item 7 (Management’s Discussion and Analysis) (up through Interest Expense). Also please review the Statement of Operations (p 38) and the Balance Sheet (p 41).

In addition, please read the Netflix Q1 2016 earnings release (attached): Pages 1-7 and the Segment information contained in the earnings release on pg 12.

Please answer the following questions 100 words minimum for each question :

Questions from the Netflix, Inc. 10-K

1) What were the two most interesting things that you learned from reading the Netflix, Inc. 10-k that you were not previously aware of? Why did you find it interesting? Be specific and detailed in your response. (4 pts)

2) What are the three business segments of Netflix, Inc.? (2 pts)

3) Netflix overall revenues have been growing at a significant rate.  However what area of their business is declining in revenues (and Netflix expects this segment to continue to decline)? Is this segment still profitable? (2 pts)

Questions for the Netflix Q1 Earnings Release

4) Which Netflix segment is not profitable? (1 pt)

5) How many TOTAL streaming memberships (U.S. and International combined) did Netflix have at the end of Q1 2016? (1 pt)