Netflix CFO Cites Strong Business

NEW
YORK, December 10: Netflix shares have jumped more than 10 percent today,
following reports of a "remarkably strong quarter" for the online
movie rental giant from CFO Barry McCarthy at the UBS Global Media and
Communications Conference in New York.

"The economy has very
much been our friend," he said. "We are having a remarkably strong
quarter. We are sitting at the Wal-Mart end of the spectrum."

McCarthy
was asked if he was seeing a large number of consumers canceling their pay-TV
service and relying on Netflix for their entertainment needs on the TV screen.
He replied that most new Netflix subscribers are supplementing their cable
needs, not substituting them. "In difficult times, people escape to the
movies, and in this quarter they've been escaping to the Netflix service,"
he said.

McCarthy also said Netflix
would increase marketing spending 20 percent more than previously budgeted
because the business model was "working so well."

—By
Kristin Brzoznowski