Q3 Results and Q4 Forecast

1 October 19, 2021 Fellow shareholders,After a lighter-than-normal content slate in Q1 and Q2 due to COVID-related production delays in 2020,we are seeing the positive effects of a stronger slate in the second half of the year. In Q3, we grewrevenue 16% year over year to $ billion, while operating income rose 33% vs. the prior year quarter to$ billion. We added paid net adds (vs. in Q3 20) to end the quarter with 214m paidmemberships. We re very excited to finish the year with what we expect to be our strongest Q4 contentoffering yet, which shows up as bigger content expense and lower operating margins Results and Q4 ForecastRevenue growth in Q3 was driven by a 9% and 7% increase in average paid streaming memberships andARM, respectively.

2 Excluding a foreign exchange (FX)impact of +$128m, ARM rose 5% year over margin for Q3 amounted to , a three percentage point increase vs. the year ago was above our beginning of quarter Forecast due to the timing of content spend, as well as lowerthan forecasted marketing spend. EPS of $ vs. $ a year ago included a $136m non-cashunrealized gain from FX remeasurement on our Euro denominated under-forecasted paid net adds for the quarter ( actual vs. our projection), while endingpaid memberships of 214m was within of our Forecast . For the second consecutive quarter, theAPAC region was our largest contributor to membership growth with paid net adds (half of totalpaid net adds) as we are continuing to improve our service in this region.

3 In EMEA, paid net adds of sequentially vs. the 188k in Q2 as several titles had a particularly strong impact. The UCAN and1 ARM (Average Revenue per Membership) is defined asstreaming revenue divided by the average number ofstreaming paid memberships divided by the number of months in the period. These figures do not include salestaxes or regions grew paid memberships more slowly. These regions have higher penetration ofbroadband homes although we believe we still have ample runway for growth as we continue to improveour a reminder, the quarterly guidance we provide is our actual internal Forecast at the time we reportand we strive for accuracy. For Q4 21, we Forecast paid net adds of , consistent with Q4 20 paid netadditions.

4 For the full year 2021, we Forecast an operating margin of 20% or slightly better. This meansthat Q4 21 operating margin will be approximately compared with 14% in Q4 20. The year overyear decline in operating margin is due mostly to our backloaded big content release schedule in this Q4,which will result in a roughly 19% year over year increase in content amortization for Q4 21 (comparedwith ~8% growth year to date).ContentOur programming strategy is to provide members with a wide variety of high quality content that s lovedand watched in large numbers. Season five ofLa Casade Papel(akaMoney Heist) and season three ofSex Educationwere two of our biggest returning showsin the quarter with 69m and 55m memberhouseholds, respectively, choosing to watch these fan favorites in the first four weeks.

5 On the heels ofThe Queen s Gambit, we ve had another limited serieshit withMaidwhich launched just afterquarter-end on October 1. We expect this story about living on the poverty line by award-winningplaywright and screenwriter Molly Smith Metzler to reach 67m households during its first four Casa de Papelwas our first non-English languagetitle to show that - with subtitling and dubbing -great stories truly can come from anywhere and be loved everywhere. We are now producing local TVand film in approximately 45 countries and have built deep relationships with creative communitiesaround the world. While the goal of our local content executives is always to create locally authenticstories that will resonate in their country (likeThe Chestnut Manwhich we expect to be watched by2approximately two thirds of our Danish members during its first four weeks), Netflix is a global,direct-to-consumer service which enables creators to reach broader audiences - and gives our membersan even greater choice of stories to is no better example of this thanSquid Game,a unique Korean story that first captured thezeitgeist in Korea and then globally.

6 Released on September 17, it has becomeour biggest TV show mind-boggling142mmember households globally havechosen to watch the title in its first four breadth ofSquid Game s popularity is truly amazing;this show has been ranked as our #1 program in94 countries (including the US). Like some of our other big hits,Squid Gamehas also pierced the culturalzeitgeist, spawning aSaturday Night Liveskitandmemes/clips on TikTokwith more than 42 billion for consumer products to celebrate the fandom forSquid Gameis high and those items are ontheir way to retail film slate also continues to build with a variety of successful Q3 titles such as action filmSweetGirlstarring Jason Momoa (68m member households chose to watch in the first four weeks),Kissing Booth 3(59m), the last installment in the rom com trilogy, the animated family filmVivo(46m) andBlood RedSky, a German-language action horror movie (53m).

7 Later in the year, we will shift to reporting on hours viewed for our titles rather than the number ofaccounts that choose to watch them. There is some difference in rankings, as you see below, but wethink engagement as measured by hours viewed is a slightly better indicator of the overall success of ourtitles and member satisfaction. It also matches how outside services measure TV viewing and givesproper credit to rewatching. In addition, we will start to release title metrics more regularly outside ofour earnings report so our members and the industry can better measure success in the * Total hours viewed per title in its first 28 days on Netflix. ** The number of accounts that have watched at least two minutesof that title in its first 28 days on Netflix.

8 Data as of 9/27 re honored to have garnered the most Emmys ever for any single network or service in a season oftelevision, with 44 (tying CBS tally in 1974 when there were only three national networks). This includedour first best Drama series win (The Crown), whileThe Queen s Gambitwon 11 out of 18 nominations,including the coveted best limited series. Both titles are among our most popular ever, demonstratingcritical and commercial Q3, we announced our agreement to acquire theRoald dahl Story Company, pending regulatoryapproval. This was an opportunity to purchase a beloved and enduring portfolio of intellectual propertyincludingCharlie and the Chocolate Factory,Matilda,The BFG, james and the giant peach ,Fantastic Twits, to name just a few.

9 Roald dahl sbooks have been translated into 63 languages andhave sold more than 300 million copies worldwide. Once we close, we ll be looking to develop evenmore of these stories into new formats across the live action television and films, animation andpre-school ve begun testing our games offering in select countries. It remains very early days for this initiativeand, like other content categories we ve expanded into, we plan to try different types of games, learnfrom our members and improve our game library. During Q3, we acquiredNight School Studio, themaker of critically acclaimed games likeOXENFREE,to help build out our game development a reminder, games on Netflix will be included in members subscriptions and will not haveadvertisements or in-app purchases so game play is purely focused on enjoyment versus re eagerly anticipating the rest of our Q4 slate, which includes a great mix of popular returningEnglish language series likeThe Witcher,You, TigerKingandCobra Kai, big returning non-English serieslikeSintoniaand the final chapter ofLa Casa dePapel(akaMoney Heist)

10 , as well as exciting new moviessuch as the action filmRed Notice(starring DwayneJohnson, Gal Gadot and Ryan Reynolds),Don t LookUpwith an all star cast including Leonardo DiCaprio,Jennifer Lawrence, Rob Morgan, Jonah Hill,Timoth e Chalamet, Tyler Perry and Meryl Streep, as well asThe Harder They FallfeaturingJonathanMajors, Zazie Beetz, LaKeith Stanfield, Regina King and Idris Elba,Army of Thieves(the prequel to ourhitmovie,Army of the Dead) andThe UnforgivablestarringSandra Bullock, Viola Davis and Jon latest films from acclaimed directors Jane Campion (The Power Of The Dog) and Paolo Sorrentino(The Hand of God) are also coming to Netflix in no new Covid waves or unforeseen events that result in large scale production shutdowns, wecurrently anticipate a more normalized content slate in 2022, with a greater number of originals in 2022vs.