.netflix Domain

THE MISSION AND PURPOSE OF THE NEW RESTRICTED .NETFLIX IS TO BENEFIT INTERNET USERS BY ENSURING INCREASED TRUST, CONVENIENCE AND UTILITY.

The content of this Answer to Question 18 set forth below which describes the plans for Netflix's registry constitutes the "purpose" of the registry as that term is used in paragraph 1.b. of Specification 9 of the Draft New gTLD Registry Agreement found in Module 5 of the Applicant Guidebook dated January 11, 2012 ("the Purpose"). Netflix will publish its Charter and its policies, guidelines, and other supporting documentation related to the implementation of the registry consistent with the Purpose, all prior to launch. All second level domain names registered by Netflix on behalf of itself or an affiliate will be registered through an ICANN-accredited registrar and will be consistent with the Purpose.

The .netflix registry will be a standard registry open only to Applicant and its affiliates or authorized business partners. For the avoidance of a doubt, the registry will be closed to registrants who do not have a formal, written trademark license agreement from Applicant specifically allowing the registration of a second level domain name in the .netflix registry (the "Required License"). The .netflix registry will not be a community-based registry and there will be no market for second level registrations outside of registrants which are affiliated with Applicant and/or which have the Required License.

The new .netflix gTLD will operate as a restricted registry, in which Netflix, Inc ("Netflix" or "Applicant") can create and control domain names within .netflix that promote the identity and authenticity of its brand. In this regard, .netflix will be used by Netflix to distribute information, services and resources to its customers, as well as to create improved marketing and communications opportunities. The .netflix gTLD will provide an authoritative internet space for Netflix and its NETFLIX brand wholly-owned affiliates and partners having the Required License. Domain names under .netflix gTLD will be utilized by Netflix to engage customers on specific product categories, movies and TV shows, or specific devices to promote trust and convenience with internet users assured of brand authenticity.

With more than 23 million streaming members in the United States, Canada, Latin America, the United Kingdom and Ireland, Netflix, Inc. [Nasdaq: NFLX] is the worldʹs leading internet subscription service for enjoying movies and TV series. Netflix is the owner of a global portfolio of NETFLIX trademarks, including by way of example, U.S. Reg. No. 2552950 having a registration date of March 26, 2002 and a priority date of December 30, 1997.

Netflix seeks innovative ways to provide entertainment and educational content to the global internet community and improve the customer experience. The .netflix gTLD will offer a brand-specific and tailored customer experience that reflects Netflix's emphasis on continuous innovation and increased customer trust.

Since the inception of the current domain name system, business activities conducted on the internet are constantly changing and evolving with increased complexity. The volume of commercial transactions over the internet is constantly growing and bringing benefits of simplicity and lowered transaction costs to businesses and consumers. However, at the same time, criminal activities over the internet including data breach, hacking and phishing activities have also become more sophisticated resulting in loss of consumer confidence beyond mere monetary harm. The .netflix gTLD may facilitate greater trust and assurance from internet users connecting with Netflix online, while also allowing a more convenient and efficient interaction.

Netflix's mission and purpose of the proposed new gTLD share ICANN's stated initiatives to promote the public interest. Netflix is committed to contribute toward achieving such initiatives in line with ICANN's Affirmation of Commitments, which includes:

- consumer trust: the .netflix gTLD registry will be operated in a centralized manner with a restrictive registration policy consistent with its Purpose. Registration of domain names will only be available to Netflix, its affiliate entities, or select business partners having the Required License, which will provide added consumer confidence that .netflix domain names are trustworthy. As .netflix domain names are subject to strict registration standards, policies and procedures under Netflix's control, this eliminates the possibility of malicious conduct within the .netflix domain space;
- competition: The marketplace in which Netflix competes with its rivals is fast moving and innovative. Netflix hopes that a .netflix gTLD, which is consistent with its NETFLIX brand, will help it compete by serving as the authoritative namespace for .netflix goods and services.

- consumer choice: the proposed new gTLD will enable user-driven improvements and innovations assisting Netflix's marketing efforts through the capability to create new second and third level domain names on demand. These new names will provide consumers with more choices for interacting with Netflix. As Netflix has effective control over the registration and use of domain names under the .netflix domain space, this will also contribute toward general service innovations on the internet.

Given the restricted nature of the .netflix gTLD, the projected number of registrations is likely to be limited. It is anticipated that a more limited number of domain names (50-100) will be registered in the first year. Netflix plans to develop and strengthen its online strategy for .netflix including specialized marketing and communications in order to provide strong customer service and personalized customer experience. As such, the number of registrations is likely to increase to about 200 to 500 domain names in the following few years. Netflix will keep ICANN reasonably informed of any material developments relating to the .netflix gTLD, including compliance with the continued operations instrument obligations as set out in Specification 8 of the Registry Agreement.

Netflix will be able to create relevant domain names for use including product or service names in the second or third level domain. In accordance with registration policies and the proposed measures for protection of geographic names as outlined in response to Question 22, Netflix will use geographic names to localize websites in countries and regions where Netflix currently operates. The use of geographic names is intended to:

- connect Netflix customers and internet users with relevant content as applicable to the territory; and
- comply with required rules and regulations in the respective national territory.

Initially, Netflix will not utilize Internationalized Domain Names ("IDNs") at the second level. As the Netflix brand reaches a wider range of languages and territories, Netflix will consider adding IDNs to its domain portfolio at a later stage. Doing so will allow internet users to engage with .netflix in their native language, creating a more positive and relevant user experience and encouraging diversity. As the use of the .netflix gTLD evolves, it is anticipated that the use of IDNs, including additional languages, will increase within the .netflix domain space.
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