REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM TheBoardofDirectorsandStockholders Netflix,Inc.: Wehaveauditedmanagement’sassessment,includedintheaccompanyingManagement’sReporton InternalControloverFinancialReportingunderItem9A,thatNetflix,Inc.(theCompany)maintainedeffective internalcontroloverfinancialreportingasofDecember31,2006,basedoncriteriaestablishedinInternal Control—IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadway Commission(COSO).Netflix,Inc.’smanagementisresponsibleformaintainingeffectiveinternalcontrolover financialreportingandforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting.Our responsibilityistoexpressanopiniononmanagement’sassessmentandanopinionontheeffectivenessofthe Company’sinternalcontroloverfinancialreportingbasedonouraudit. WeconductedourauditinaccordancewiththestandardsofthePublicCompanyAccountingOversight Board(UnitedStates).Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassurance aboutwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.Our auditincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,evaluatingmanagement’s assessment,testingandevaluatingthedesignandoperatingeffectivenessofinternalcontrol,andperformingsuch otherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditprovidesa reasonablebasisforouropinion. Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassurance regardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesin accordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreporting includesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail, accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonable assurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordance withgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmade onlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonable assuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthe company’sassetsthatcouldhaveamaterialeffectonthefinancialstatements. Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetect misstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthat controlsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththe policiesorproceduresmaydeteriorate. Inouropinion,management’sassessmentthatNetflix,Inc.maintainedeffectiveinternalcontrolover financialreportingasofDecember31,2006,isfairlystated,inallmaterialrespects,basedoncriteriaestablished inInternalControl—IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsofthe TreadwayCommission(COSO).Also,inouropinion,Netflix,Inc.maintained,inallmaterialrespects,effective internalcontroloverfinancialreportingasofDecember31,2006,basedoncriteriaestablishedinInternal Control—IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadway Commission(COSO). Wealsohaveaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard (UnitedStates),theconsolidatedbalancesheetsofNetflix,Inc.andsubsidiaryasofDecember31,2005and 2006,andtherelatedconsolidatedstatementsofoperations,stockholders’equityandcomprehensiveincome,and cashflowsforeachoftheyearsinthethree-yearperiodendedDecember31,2006,andourreportdated February27,2007expressedanunqualifiedopiniononthoseconsolidatedfinancialstatements. /s/KPMGLLP MountainView,CA February27,2007 F-3
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