Netflix (NASDAQ: NFLX) is the world's largest video and television episode rental subscription service, having pioneered the model and charging customers a flat monthly fee for unlimited rentals without due dates, late fees, shipping fees or pay-per-view fees^[1]. Their 50 regional shipping centers across the United States help almost 95% of their customers receive their DVDs within a day of shipping, while their rating system gives customers recommendations based on their rental history^[2]. In fiscal year 2010, Netflix recorded revenues of $2.1 billion and net income of $161 million.

As of late, Netflix has focused on expanding its content base and international expansion. Netflix obtains content from studios, distributors and other suppliers because a lot of these license agreements give Netflix exclusive rights to a collection of titles. In 2010 it gained exclusive rights to stream Relativity Media movies and formed a five-year streaming deal with pay-TV network Epix^[3][4].

(Read more at Wikinvest )