The red envelope company quickly acquired DVDs via various wholesale channels (this would soon be a major source of conflict for Netflix and most of the Hollywood major studios) in order to supply its then nascent subscriber numbers (approximately 450,000 total subscribers, all domestic according to the company’s 2002 Annual Report) with quality and diversified programming which included films (horror, comedy, action, crime, thriller, musicals, romance, drama and mystery), documentaries, TV shows, etc.