Amazon and Netflix establish promotional relationship

NetFlix.com Strengthens Its Focus On DVD Rentals
And Encourages Customers To Buy DVDs at Amazon.com

Scotts Valley, Calif. (December 4, 1998) — NetFlix.com and Amazon.com,
Inc. (Nasdaq: AMZN) today 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 November 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.

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