Warner Bros. and Netflix Announce Expanded Agreement Covering Streaming Content

Arrangement Extends Current Catalog Movie Deal and Adds Catalog TV Shows, Including 'Nip/Tuck'

BURBANK, Calif. and BEVERLY HILLS, Calif., July 15 -- Warner Bros. Home Entertainment Group and Netflix, Inc. (Nasdaq: NFLX) today announced an expansion of the companies' existing streaming content agreement. The new agreement adds a slate of catalog TV shows available to watch instantly at Netflix and extends the existing license for catalog movies through 2011.

Most notably, Netflix has acquired streaming rights - for a period of four years - to all 100 episodes of the Golden Globe(R) Award-winning drama series "Nip/Tuck." (Separately, "Nip/Tuck" will air simultaneously in a linear pattern on the cable network Logo via an off-cable syndication deal with Warner Bros. Domestic Television Distribution.) As part of its deal, Netflix has also acquired streaming rights to the series "Veronica Mars," "Pushing Daisies" and "Terminator: The Sarah Connor Chronicles," among others.

"Our Netflix streaming relationship is a good example of the opportunities the digital space provides to make content available in new ways at appropriate points in the product lifecycle," said Thomas Gewecke, president, Warner Bros. Digital Distribution. "This agreement establishes an additional stop on the economic chain for our library content while providing consumers with more convenience and choice."

"Netflix and Warner Bros. have a history of innovation and partnership," said Robert Kyncl, vice president of content acquisition for Netflix. "This agreement breaks new ground for both of us in the area of subscription, commercial-free streaming of first cycle syndication network and cable TV shows. We are proud to make more movies and TV episodes from Warner Bros. available to Netflix members."

"Consumers now have the ability to choose how they enjoy 'Nip/Tuck,' either streamed instantly from Netflix or in a more traditional linear fashion on Logo," said Ken Werner, president, Warner Bros. Domestic Television Distribution. "'Veronica,' 'Daisies' and 'Sarah Connor' are all high-quality, critically acclaimed series with passionate fan bases but which have a limited number of episodes, preventing a more traditional syndicated rollout. Netflix can offer the consumer instant access to multiple episodes, creating a viewing experience that is a plus for serialized shows."

Earlier this year, Netflix and Warner Bros. Home Entertainment announced an agreement under which new release titles on DVD and Blu-ray will be made available to Netflix subscribers after a 28-day window, giving Warner Bros. the opportunity to maximize the sales potential of those titles along with an extended revenue share period and Netflix the benefits of reduced product costs, significantly more units and better in-stock levels four weeks after street date. The agreement announced today does not alter the previous arrangement with regard to the 28-day window for new release titles.

Warner Bros. is currently a leader in many home video categories including total video (DVD and Blu-ray combined), Theatrical Catalog video, TV on DVD, and Blu-ray.

About Warner Bros. Home Entertainment Group

Warner Bros. Home Entertainment Group (WBHEG) brings together Warner Bros. Entertainment's home video, digital distribution, interactive entertainment, technical operations and anti-piracy businesses in order to maximize current and next-generation distribution scenarios. An industry leader since its inception, WBHEG oversees the global distribution of content through packaged goods (Blu-ray Disc and DVD) and digital media in the form of electronic sell-through and video-on-demand via cable, satellite, online and mobile channels, and is a significant developer and publisher for console and online video game titles worldwide. WBHEG distributes its product through third party retail partners and licensees, as well as directly to consumers through WBShop.com.

About Warner Bros. Television Group

The Warner Bros. Television Group oversees the entire portfolio of Warner Bros. television businesses, including worldwide production, traditional and digital distribution and broadcasting. WBTVG is committed to creating, producing and distributing content across all traditional, emerging digital and future platforms in the evolving entertainment and media landscape. In the traditional television arena, WBTVG produces primetime, first-run, cable and animation series which are distributed worldwide. WBTVG is also an innovative leader in developing new business models for the evolving digital television marketplace, including ad-supported video-on-demand as well as broadband and wireless destinations featuring original content produced by WBTVG. The Group provides unmatched digital media sales opportunities tailored to clients seeking multiplatform campaigns across broadcast, cable, broadband and wireless outlets. Warner Bros. Entertainment is also a partner with CBS in The CW Television Network.

About Warner Bros. Domestic Television Distribution

Warner Bros. Domestic Television Distribution (WBDTD) is one of the leading suppliers of entertainment programming to the domestic television marketplace, distributing first-run syndicated series, off-network television programs and theatrical motion pictures to local broadcast television stations, as well as to pay, cable, satellite and broadcast networks throughout the U.S. WBDTD handles the domestic distribution of television series produced by Warner Bros. Television, Telepictures Productions, Warner Bros. Animation and Warner Horizon Television; selected HBO Independent Productions and the Lorimar Television library; current feature films from Warner Bros. Pictures; and the Studio's unmatched motion picture library.

About Netflix, Inc.

With more than 13 million members, Netflix, Inc. (Nasdaq: NFLX) is the world's largest subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. For $8.99 a month, Netflix members can instantly watch unlimited TV episodes and movies streamed to their TVs and computers and can receive unlimited DVDs delivered quickly to their homes. With Netflix, there are never any due dates or late fees. Members can select from a growing library of titles that can be watched instantly and a vast array of titles on DVD. Among the large and expanding base of devices that can stream movies and TV episodes from Netflix right to members' TVs are Microsoft's Xbox 360, Sony's PS3 and Nintendo's Wii consoles; Blu-ray disc players from Samsung, LG and Insignia; Internet TVs from LG, Sony and VIZIO; the Roku digital video player and TiVo digital video recorders, and Apple's iPad tablet. For more information, visit http://www.netflix.com.