Amazon.com and NetFlix.com Establish Promotional Relationship for the
Sale and Rental of DVD Titles
SCOTTS VALLEY, Calif.--(ENTERTAINMENT WIRE)--Dec. 4, 1998--
NetFlix.com Strengthens its Focus on DVD Rentals and Encourages
Customers to buy DVDs at Amazon.com
NetFlix.com and Amazon.com Inc. (Nasdaq:AMZN) Friday announced a marketing relationship focused on making it even easier
for online shoppers to rent or buy DVD movies.
Under the terms of the agreement, Netflix.com will direct its customers to Amazon.com for DVD purchases and Amazon.com
will offer its customers specific promotions for DVD rentals at NetFlix.com.
The new online relationship will allow both partners to offer their respective customers even higher levels of service and
authoritative selection through cross-promotions, special DVD offers and comprehensive access to virtually every DVD title a
customer could want to rent or buy.
"NetFlix.com has chosen to concentrate all of our energies on our core rental customers, who have made NetFlix.com the world's
largest online DVD rental store in seven short months," said Marc B. Randolph, president of NetFlix.com. "At the same time,
Amazon.com's reputation for tremendous selection and first-class customer service makes them the ideal partner to handle the
sales of DVD movies to our customers. In addition, Netflix.com looks forward to introducing millions of Amazon.com customers
to our compelling DVD rental service through exclusive special offers and promotions."
"The launch of our new video store has vastly increased our DVD selection and content," said Ram Shriram, Amazon.com vice
president of business development. "Working with NetFlix.com, we can extend our service to DVD customers one step further,
through exclusive special offers from a fantastic partner that is solely dedicated to helping customers rent DVDs online."
The Amazon.com video store, launched on Nov. 17, 1998, offers more than 2,300 DVDs, all accompanied by Amazon.com's
search features and unmatched editorial content, which allow shoppers to find exactly the video they want at sharply discounted
prices, up to 30% off.
About NetFlix.com Inc.
NetFlix.com is the world's first and largest online DVD rental store. The NetFlix.com online store, located at www.netflix.com,
carries virtually every DVD movie -- currently numbering more than 2,300 titles -- and rents them to owners of DVD video
players and DVD-ROM equipped PCs. In addition to offering its customers the world's largest selection of DVD movies,
NetFlix.com provides 7-day rentals, same-day-shipping to anywhere in the Untied States, easy-to-use search features, advance
movie reservations, and multi-rental discounts. By focusing on online rentals, NetFlix.com is pioneering a new online retail model
and e-commerce category. Founded in 1997, NetFlix.com has headquarters in Scotts Valley.
About Amazon.com Inc.
Amazon.com, the Internet's No. 1 book and No. 1 music retailer, opened is virtual doors on the World Wide Web in July 1995 and
quickly became Earth's Biggest Bookstore (SM). Today, the Amazon.com store has expanded to offer more than 3 million books,
music CDs, videos, DVDs, computer games, and other titles, plus secure credit card payment, personalized recommendations, and
streamlined ordering through 1-Click (SM) technology.
Amazon.com operates two international bookstore Web sites: www.amazon.co.uk in the United Kingdom and www.amazon.de in
Germany. Amazon.com also operates PlanetAll (www.planetall.com), a Web-based address book, calendar, and reminder service.
It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information
on more than 150,000 movies and entertainment programs and 500,000 cast and crew members dating from the birth of film in
1892 to the present.
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others,
Amazon.com's limited operating history, the unpredictability of its future revenues, and risks associated with capacity constraints,
management of growth, and new business opportunities.
More information about factors that potentially could affect Amazon.com's financial results is included in the company's filings
with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended Dec. 31, 1997, and
the quarterly report on Form 10-Q for the quarter ended Sept. 30, 1998.
CONTACT: NetFlix.com
Te Smith, 831/461-8067
tsmith@netflix.com
or
Amazon.com
Bill Curry, 206/834-7180
curry@amazon.com
or
Bender, Goldman & Helper, 310/473-4147
(for NetFlix.com)
Shawna Lynch, ext. 276
shawna_lynch@bgh.com
Allison Novela, ext. 264
allison_novela@bgh.com
Leslie Furuta, ext. 257
leslie_furuta@bgh.com |
