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NETFLIX Free Resources
Gross margin for the fir...
Gross margin for the first quarter was 46.1 percent, down from 48.2 percent in the fourth quarter of 2002. Disc usage per average paid subscriber increased 15 percent during the first quarter. This increase resulted in a lower gross margin for the quarter. Increased disc usage resulted from faster local delivery of DVDs to the Company's subscribers. Faster delivery was enabled by certain software and operational improvements to the Company's fulfillment operations during the quarter, including the roll-out of five additional metropolitan shipping centers.
Subscriber acquisition cost for the first quarter was $31.67 per new-trial subscriber compared to a cost of $25.44 for the first quarter 2002 and a cost of $33.31 for the fourth quarter 2002.
The lifetime value of a Netflix subscriber increased 25% from the first quarter of 2002, as record low churn extended the expected average lifetime of a subscriber. The resulting 24% increase in lifetime revenue more than offset the higher costs associated with increased DVD usage during the quarter. Lifetime EBITDA increased to an estimated $102 per subscriber from $82 in the prior year.
Netflix Opens New Shipping Center - 2/28/2003
Netflix announced the opening of a shipping center to serve the greater Phoenix and Tucson areas. As previously announced, Netflix plans to open one to two facilities per month for the remainder of 2003 as part of its ongoing strategy to provide one-day movie delivery to its members. By year-end 2003, Netflix expects that it will be able to reach more than 70 percent of its subscribers with generally next-day service.
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