This is one of the best conference calls transcripts I’ve read, a must read for any busy investor.

Barry McCarthy http://seekingalpha.com/article/61343-netflix-inc-q4-2007-earnings-call-transcript?page=3
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from December 2005 to December 2007, our subscriber base has grown by 79% to 7.5 million subscribers. Revenue has grown by 77% to $1.2 billion. We’ve nearly doubled our free cash flow to $46 million

Our market view is informed by two assumptions: first, the consumer demand for Internet video will remain small as long as the consumer viewing experience is limited to the computer. Over time, new devices will enable consumers to watch Internet delivered content on their T.V. sets. That transition will open the mass market to Internet delivered content. But it will take years for these devices to reach a critical mass of consumer adoption.
By way of example, DVD players, the fastest growing consumer product launch in history, took five years to reach 50% household penetration, and these devices will take longer.
Our second assumption is that consumer demand for Internet video will remain unlimited as long as the quantity and quality of licensable content remains limited. Content availability is limited for two reasons: first, for license content to grow, it needs to be additive to studio revenue and not cannibalistic. The studios will protect the current revenue streams; 41% of studio revenue comes from selling DVDs − that is what they are protecting.
Second, in a subscription model, the distribution rights to many newly released movies have been licensed exclusively to the pay networks, such as HBO, Stars and Showtime. The studios sold those rights and for a great deal of money without the ability to resell them again during the pay window. Before and during the pay window, that content is effectively off the market.
The longer the market transition to Internet delivery takes, the more established our brand will become and the more sustained our competitive advantage will be versus free-standing Internet delivery services.
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Oh yeah.