Netflix's 2007 Annual Report

Netflix released the 2007 Annual Report, and you can download it from the Netflix website.

Here are a few tidbits from the report:

From the front page of the report: "SIC Code 7841 - Video Tape Rental." Netflix has never rented VHS tapes, and the DVD format has been around since 1995. Time for a new SIC code? (p. 1).

Ever wonder why titles disappear from Watch Instantly? "For titles delivered through our instant-watching feature, we generally license the content directly for a period of time. Following expiration of the license term, we are no longer able to distribute the content through our instant- watching feature unless we extend or renew the associated license agreement." (p. 8).

Netflix has approximately 90,000 titles on more than 69 million DVDs. (p. 9).

Netflix has more than 1,542 full-time and 1,128 part-time employees. (p. 10).

I guess high-def discs Blu-ray are not as durable as traditional DVDs: "These new high definition format DVDs appear to have higher damage rates than regular DVDs." (p. 18).

Is someone attacking Netflix's website? "Our Web site periodically experiences directed attacks intended to cause a disruption in service." (p. 19).

Netflix is involved in a number of legal proceedings, including the Frank Chavez class action lawsuit, Lycos patent infringement claim, Dennis Dilbeck anti-trust class lawsuit, and several other patent-infringement claims. (p. 65-66).

Comments

[Matt]

The comment about durability seems to be about HD-DVD and Blu-ray. From what I've heard, Blu-ray requires some special coating that makes it nigh indestructable, while HD-DVD doesn't (or didn't, rather).

[MikeK]

Matt,

Good point. I'll update the post to reflect high def DVDs, as mentioned in the report. I guess I'm already forgetting about HD DVD!

- Mike

[Garblesnorf]

I could have sworn it was Blu-Ray that had the durability issues. The coating on the Blu-Ray discs makes them resistant to scratching but more likely to crack under pressure.

[Corey3rd]

for the amount of content squeezed onto a Blu-Ray disc, you'd imagine they'd have set them up with a protective outer shell like the old floppy discs.

[eviltimes]

I've heard the durability thing both ways. There is so much BS on this issue, we may not know until a year or two of experience goes by.

[CJ]

From my experience renting both Blu-ray and HD-DVD titles for over a year now, both at Netflix and Blockbuster, Blu-ray disks seem much more durable than HD-DVD disks. I've had no problems at all the past year with any Blu-ray titles, while maybe half a dozen HD-DVD titles would freeze, skip, etc.

So based on my experience, Blu-ray is probably more durable than even standard old DVDs. Actually, that's one big reason why I'm glad Blu-ray "won" the war with HD-DVD...