NetFlix 2005 Annual Report Download - page 64

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cash flows for each of the years in the three-year period ended December 31, 2005. This material weakness was
considered in determining the nature, timing, and extent of audit tests applied in our audit of the 2005
consolidated financial statements, and this report does not affect our report dated March 14, 2006, which
expressed an unqualified opinion on those consolidated financial statements.
In our opinion, management’s assessment that Netflix, Inc. did not maintain effective internal control over
financial reporting as of December 31, 2005, is fairly stated, in all material respects, based on criteria established
in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). Also, in our opinion, because of the effect of the material weakness described
above on the achievement of the objectives of the control criteria, Netflix, Inc. has not maintained effective
internal control over financial reporting as of December 31, 2005, based on criteria established in Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO).
/s/ KPMG LLP
Mountain View, California
March 14, 2006
F-4