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                                                                    EXHIBIT 10.5

This Sublease (Sublease) is made this 4th day of January, 1999 by and between
HI/FN, Inc., a Delaware corporation ("Sublandlord") and NETFLIX.COM, Inc. a
California corporation ("Subtenant").

                                   RECITALS

A.   Sublandlord, as Tenant, is leasing from 750 University, a Limited Liability
     Corporation (Landlord) those certain premises located at 750 University
     Avenue, Los Gatos, California (Premises) pursuant to that certain lease
     dated November 13, 1997 (Master Lease). Subtenant acknowledges having
     received and reviewed a copy of the Master Lease.

B.   Sublandlord desires to lease to Subtenant and Subtenant desires to lease
     from Sublandlord a portion of the Premises consisting of approximately
     eleven thousand eight hundred and fourteen (11,814) rentable square feet,
     located on the ground floor (the Sublease Premises") as shown on Exhibit E
     attached hereto, on the terms and conditions set forth in this Sublease.

NOW, THEREFORE, the parties hereto agree as follows:

1.   PREMISES.

     Sublandlord leases to Subtenant and Subtenant hires from Sublandlord the
     Sublease Premises, together with the appurtenances thereto.

2.   INCORPORATION OF MASTER LEASE.

     This Sublease is subject to all of the terms and conditions of the Master
     Lease and Subtenant hereby accepts, assumes and agrees to perform during
     the term of this Sublease all of the obligations of Sublandlord as Tenant
     under the Master Lease to the extent applicable to the Sublease Premises
     and all of the terms and conditions of this Sublease. The terms and
     conditions of the Master Lease are incorporated in this Sublease, except
     that (i) unless stated to the contrary below, each reference in the
     incorporated paragraphs to "Lease" shall be deemed a reference to this
     "Sublease", each reference to the "Landlord" shall be deemed a reference to
     the "Sublandlord", each reference to the "Tenant" shall be deemed a
     reference to the "Subtenant", each reference to the "Premises" shall be
     deemed a reference to the "Sublease Premises", each reference to the "Term"
     shall be deemed a reference to the "Sublease Term", each reference to the
     "Rent" shall be deemed a reference to the "Rent" as described in Section 6
     of this Sublease, and (ii) the following terms and conditions of the Master
     Lease shall be excluded or modified as follows: the first and second
     sentences of the first paragraph of the recitals, Paragraphs 1, 2, 3, 4, 5,
     7, 8, 9, and 11 of the Summary of Lease, and Paragraphs 2, 3, 4, 5, the
     last sentence of the third paragraph of Paragraph 8, the last sentence of
     the first

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     paragraph of Paragraph 9, the fourth sentence of the third paragraph of
     Paragraph 11, the last sentence of the first paragraph and the entire last
     paragraph of 12, 13, the last sentence of the last paragraph of Paragraph
     15, 22, the first sentence of Paragraph 27, the second and third sentences
     of the second paragraph of Paragraph 29, 37, 47, the entire second
     paragraph of Paragraph 49, 51, 52, 54, 55, 56, 57, and the Lease Guaranty,
     Exhibits A, C, C-1 and D of the Master Lease are not incorporated herein,
     and each reference to Landlord in Sections 15, 16, 21, 30, 35 and 36 shall
     be deemed to refer to Landlord only and not to Sublandlord.

     Subtenant shall not commit or permit to be committed on the Sublease
     Premises any act or omission which shall violate any term or condition of
     the Master Lease incorporated herein or modified hereby. In the event of
     the termination for any reason of Sublandlord's interest as Tenant under
     the Master Lease, then this Sublease shall terminate therewith without any
     liability of Sublandlord to Subtenant; except that if this Sublease
     terminates as a result of a default of one of the parties hereto, whether
     under this Sublease, the Master Lease, or both, the defaulting party shall
     be liable to the non-defaulting party for all damages suffered by the non-
     defaulting party resulting from such termination.

3.   SUBLANDLORD'S OBLIGATIONS.

     Sublandlord agrees that Subtenant shall be entitled to receive all services
     and repairs to be provided by Landlord to Sublandlord as tenant under the
     Master Lease with respect to the Sublease Premises. Sublandlord covenants
     and agrees with Subtenant that Sublandlord shall perform all other
     obligations of Tenant pursuant to the Master Lease to the extent that
     failure to perform the same would adversely affect Subtenant's use or
     occupancy of the Sublease Premises. Sublandlord also agrees that
     Sublandlord will act as a conduit to transmit any instructions or requests
     by Subtenant to Landlord.

4.   TERM.

     The term of this Sublease shall be for a period of twenty-four (24) months
     commencing on the date that is the later of (i) February 1, 1999 or (ii)
     the date Sublandlord delivers to Subtenant possession of the Sublease
     Premises in broom clean condition with all approvals and permits from the
     appropriate governmental authorities required for the legal occupancy of
     the Sublease Premises for Sublessee's intended use (the "Commencement
     Date") and ending on January 31, 2001 (the "Sublease Term,") In the event
     Sublandlord is unable to deliver possession of the Sublease Premises at the
     commencement of the Sublease Term, with the voice and data wiring referred
     to in. Exhibit G installed by Sublandlord, Sublandlord shall not be liable
     for any damage caused thereby, nor shall this Sublease be void or voidable
     nor shall the term hereof be extended by such delay; provided, however,
     that Subtenant shall not be liable for rent until such time as Sublandlord
     offers to deliver possession of the Sublease Premises to Subtenant.
     Notwithstanding anything to the contrary herein, if the Commencement Date
     has not occurred prior to March 1, 1999, then, in addition to Subtenant's
     other rights and remedies. Subtenant may terminate the Sublease by written
     notice to Sublandlord,

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     whereupon any monies previously paid by Subtenant to Sublandlord shall be
     reimbursed to Subtenant.

5.   USE.

     Subtenant shall use the Sublease Premises for general office and research
     and development and for no other purpose.

6.   RENTAL.

     (a)  Subtenant shall pay to Sublandlord as rent for the Sublease Premises,
          in advance, on the first day of each calendar month during the
          Sublease Term, without deduction, offset, prior written notice or
          demand; in lawful money of the United States, the sum of Thirty-six
          Thousand Six Hundred Twenty-three and 40/100ths Dollars ($36,623.40)
          (see Rent Schedule, "Exhibit F"). If the Commencement Date is not the
          first day of the month, a prorated monthly installment shall be paid
          at the then current rate for the fractional month during which the
          Sublease commences.

     (b)  Except as provided in subparagraph (a) above, on or before the
          Commencement Date, Subtenant shall pay Sublandlord the sum of Thirty-
          six Thousand Six Hundred Twenty-three and 40/100ths Dollars
          ($36,623.40) as rent for the first month of the Sublease Term.

     (c)  Concurrently with Subtenant's execution of this Sublease, Subtenant
          shall deposit with Sublandlord the sum of Seventy-three Thousand Two
          Hundred Forty-six and 80/100ths Dollars ($73,246.80) as a non-interest
          bearing security deposit for Subtenant's performance under this
          Sublease. Within thirty (30) days after Subtenant has vacated the
          Sublease Premises at the expiration or earlier termination of the
          Sublease Term, the amount paid as security deposit shall be returned
          to Subtenant after first deducting any sums that are needed by
          Sublandlord to cure defaults of Subtenant under this Sublease or
          compensate Landlord for damages for which Subtenant is liable pursuant
          to this Sublease.

7.   SURRENDER AT END OF TERM.

     Subtenant agrees to surrender the Sublease Premises on expiration or
     earlier termination of the Sublease Term, in the same condition and repair
     as received on the Commencement Date, acts of God, condemnation, casualty,
     hazardous materials not released by Subtenant, and reasonable wear and tear
     excepted. In addition, on or prior to the expiration or earlier termination
     of this Sublease, at Sublandlord's option, Subtenant shall remove, at
     Subtenant's sole cost and expense, all telephone, other communication,
     computer and any other cabling and wiring or any sort installed in the
     space above the suspended ceiling of the Sublease Premises or anywhere else
     in the Sublease Premises and shall promptly repair any damage to the
     suspended ceiling, lights, light fixtures, walls and any other part of the
     Sublease Premises resulting from such removal.

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8.   LANDLORD'S WRITTEN CONSENT.

     This Sublease is conditioned upon and effective only upon obtaining the
     written consent of Landlord. Sublandlord shall use reasonable efforts to
     obtain Landlord's consent as soon as possible. If, however, Landlord's
     consent has not been obtained by February 1, 1999, then Subtenant shall
     have the right to terminate this Sublease, in which event Sublandlord shall
     promptly refund to Subtenant all amounts theretofore paid by Subtenant
     hereunder.

9.   NOTICES.

     All notices and demands of any kind given by Sublandlord or Subtenant
     hereunder shall be in writing and sent by the United States mail, postage
     prepaid, by overnight courier or by personal delivery. All such notices and
     demands shall be addressed to Sublandlord or Subtenant, as the case may be,
     at the addresses set forth below their respective signatures or at such
     other addresses as they may designate from time to time, and shall be
     effective upon receipt.

10.  INSURANCE.

     Insurance requirements pertaining to Sublandlord as Tenant under Paragraph
     11 of the Master Lease shall also apply to Subtenant.

11.  BROKER.

     Sublandlord and Subtenant represent and warrant to each other that, with
     the exception of Mike Filice of CPS, the Commercial Property Services
     Company, and Bob Shepherd of Colliers International, no brokers were
     involved in connection with the negotiation or consummation of this
     Sublease. Each party agrees to indemnify the other, and hold it harmless,
     from and against any and all claims, damages, losses, expenses and
     liabilities (including reasonable attorney's fees) incurred by said party
     as a result of a breach of this representation and warranty by the other
     party. Sublandlord shall pay all commissions due and owing to CPS and
     Colliers International arising out of and in connection with the Sublease.

12.  SIGNAGE.

     Sublandlord shall use reasonable efforts to provide Subtenant with Project
     directory signage reasonably satisfactory to Subtenant.

13.  SUBLANDLORD'S COVENANTS.

     Sublandlord shall (i) keep the Master Lease in effect; (ii) not modify,
     amend or waive any provisions thereof or make any election, exercise any
     option, right or remedy, or grant any consent or approval thereunder
     without, in each instance, Subtenant's prior written

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     consent; (iii) pay the rent due and perform all of Sublandlord's other
     obligations under the Master Lease, except to the extent that Subtenant is
     obligated to perform such other obligations under the Sublease; (iv) not
     take any action or omit to take any action that could cause or constitute a
     breach of the Master Lease or otherwise give rise to a right of Landlord to
     terminate the Master Lease or declare any provision thereof to have become
     ineffective; (v) enforce performance of all obligations of Landlord under
     the Master Lease; and (vi) immediately send Subtenant copies of any notices
     received by Sublandlord from Landlord that could affect Subtenant's use of
     the Sublease Premises or rights under the Sublease, including, without
     limitation, any notices of default under the Master Lease. In enforcing
     performance of all such obligations of Landlord, Sublandlord shall, upon
     Subtenant's written request, immediately notify Landlord of its
     nonperformance under the Master Lease and request that Landlord perform its
     obligations under the Master Lease.

14.  SUBLANDLORD'S REPRESENTATIONS AND WARRANTIES.

     (a)  As an inducement to Subtenant to enter into this Sublease, Sublandlord
          represents and warrants that (i) the form of the Master Lease as
          Exhibit "A" is true, correct and complete and has not been modified in
          any respect; and (ii) to the best of Sublandlord's knowledge, both the
          Master Lease is in full force and effect, and there exists no default
          or event of default under the Master Lease by either Landlord or
          Sublandlord, nor has there occurred any event which, with the giving
          of notice or the passage of time or both, could constitute such a
          default or event of default.

     (b)  In addition, Sublandlord warrants and represents that, as of the
          Commencement Date, (i) the Sublease Premises will comply with all
          applicable laws, rules, regulations, codes, ordinances, underwriters'
          requirements, covenants, conditions, and restrictions, (ii) the
          Sublease Premises will be in good and clean operating condition and
          repair, and (iii) the electrical, mechanical, HVAC, plumbing, sewer,
          elevator and other systems serving the Sublease Premises will be in
          good operating condition and repair. Sublandlord shall, promptly after
          receipt of notice from Subtenant, remedy or cause to be remedied any
          non-compliance with such warranty at Sublandlord's sole cost and
          expense.

15.  ADDITIONAL RENT.

     This is a full-service gross sublease. Subtenant's only obligation with
     regard to the repair and maintenance of the Sublease Premises shall be to
     keep the Sublease Premises in a clean and sanitary condition. Sublandlord
     shall, at Sublandlord's sole cost, maintain the Sublease Premises and all
     systems serving the Sublease Premises in good working condition and repair
     throughout the Sublease Term. Subtenant's base rent constitutes the entire
     consideration payable by Subtenant. Under no circumstances shall Subtenant
     be obligated to pay any items of additional rent required to be paid under
     the Master Lease, including, without limitation, Direct Expenses, rent
     escalation charges, common area

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     maintenance charges, real estate taxes, or insurance charges (as defined in
     Paragraphs 4 and 5 of the Master Lease).

16.  ABATEMENT OF RENT.

     Subtenant shall be entitled to, and benefit from, any rental abatement
     granted Sublandlord under the Master Lease, but only to the extent that
     such abatement relates to the Sublease Premises.

17.  WAIVER OF SUBROGATION.

     Notwithstanding anything to the contrary contained in the Sublease or the
     Master Lease, the parties hereto, including Landlord by reason of its
     consent hereto, each release the others and their respective agents,
     employees, successors, assignees and subtenants from all liability for
     injury or damage to any property to the extent specified in Paragraph 11 of
     the Master Lease.

18.  INDEMNITY.

     Except to the extent caused by any default of Subtenant, its agents,
     employees, contractors or invitees, Sublandlord shall indemnify, defend
     with counsel reasonably acceptable to Subtenant, and hold Subtenant
     harmless from and against any and all losses, costs, claims, liabilities
     and damages (including, without limitation, reasonable attorneys' and
     experts' fees) caused by or arising in connection with (i) a breach of
     Sublandlord's obligations under the Sublease; (ii) a breach of
     Sublandlord's obligations under the Master Lease, unless cause by
     Subtenant's breach of its parallel obligations under the Sublease; or (iii)
     the negligence or willful misconduct of Sublandlord, its employees,
     contractors, agents or invitees.

19.  APPROVALS.
     ---------

     Whenever the Sublease requires an approval, consent, designation,
     determination, selection or judgment by either Sublandlord or Subtenant,
     such approval, consent, designation, determination, selection or judgment
     and any conditions imposed thereby shall be reasonable and shall not be
     unreasonably withheld or delayed and, in exercising any right or remedy
     hereunder, each party shall at all times act reasonably and in good faith.

20.  REASONABLE EXPENDITURES.

     Any expenditure by a party permitted or required under the Sublease, for
     which such party is entitled to demand and does demand reimbursement from
     the other party, shall be limited to the fair market value of the goods and
     services involved, shall be reasonably incurred, and shall be substantiated
     by documentary evidence available for inspection and review by the other
     party or its representative during normal business hours.

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     IN WITNESS WHEREOF, Sublandlord and Subtenant have executed this Sublease
as of the date first set forth above.

SUBLANDLORD:                            SUBTENANT:

HI/FN, INC.,                            NETFLIX.COM. INC.,
a Delaware corporation                  a California corporation


By: /s/ R. J. Farnham                   By: /s/ Rood Hastings
    -------------------------------         --------------------------------

Name: R. J. Farnham                     Name: Rood Hastings
      -----------------------------           ------------------------------

Its: President                          Its: President
     ------------------------------          -------------------------------

Date: 1-6-99                            Date: 3 JAN 98
      -----------------------------           ------------------------------

By: /s/ William R. Walker               By: /s/ Marc Randolph
    -------------------------------         --------------------------------

Name: William R. Walker                 Name: Marc Randolph
      -----------------------------           ------------------------------

Its: Secretary                          Its: Secretary
     ------------------------------          -------------------------------

Date: JAN 6 1999                        Date: 5 Jan 98
      -----------------------------           ------------------------------

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                        LANDLORD'S CONSENT TO SUBLEASE

THIS CONSENT (Consent) is given by 750 University, a Limited Liability
Corporation (Landlord) to that certain Sublease dated January 4, 1999, (the
Sublease) by and between HI/FN, Inc., a Delaware corporation ("Sublandlord") and
NETFLIX.COM, Inc, a California corporation ("Subtenant"), subject to the
following terms and conditions:

1.   All capitalized terms not otherwise defined herein shall have the meaning
     ascribed to them in the Sublease.

2.   Landlord is not a party to the Sublease and has no obligations or duties to
     Subtenant or Sublandlord under the Sublease and any provisions therein
     purporting to obligate and/or bind Landlord or limit Landlord's rights
     under the Master Lease in any way are deemed null and void. Notwithstanding
     any provision to the contrary in the Sublease, Subtenant shall have no
     greater rights than Sublandlord has as Tenant under the Master Lease.

3.   This Consent shall only apply to this Sublease and shall not be deemed to
     be a consent to any other or further sublease or a waiver of any of the
     provisions of the Master Lease.

4.   By consenting to the Sublease, Landlord waives none of its rights against
     the Sublandlord as Tenant under the Master Lease. The Sublease is and shall
     remain at all times subject to and subordinate in all respects to the
     Lease.

5.   This Consent shall not modify or amend or be deemed to modify or amend the
     Master Lease in any way, or to impose on Landlord any obligation to provide
     notice to, or obtain consent from, Subtenant with respect to amendments,
     defaults, waivers or any other matters pertaining to the Master Lease or to
     the Premises covered by the Master Lease. Any waiver by Landlord of its
     rights shall be made only in writing and signed by Landlord.

6.   Upon the expiration or earlier termination of the Master Lease, the
     Sublease shall automatically and without notice or demand, terminate and
     Subtenant agrees promptly to surrender the Sublease Premises to Landlord
     upon such termination without compensation from Landlord.

7.   This Consent shall not be effective until receipt by Landlord of a
     counterpart or counterparts of this Consent duly executed by Sublandlord
     and Subtenant, each acknowledging its agreement to the terms and conditions
     specified in this Consent.

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8.   Notwithstanding anything to the contrary herein, Landlord specifically
     agrees to paragraph 17 of the Sublease entitled "Waiver of Subrogation."

LANDLORD
750 University, a Limited Liability Corporation


By: /s/ Birk S. McCandless                   By: /s/ Barry McCarthy
    -----------------------------------          -------------------------------
Name: Birk S. McCandless                     Name: _____________________________
      ---------------------------------
Its: President                               Its: Secretary

Date: 1/11/99                                Date: _____________________________
      ---------------------------------

EACH OF THE UNDERSIGNED HEREBY ACKNOWLEDGE THAT IT HAS READ AND UNDERSTANDS THE
TERMS AND CONDITIONS SPECIFIED IN THE FOREGOING CONSENT AND AGREES TO ALL SUCH
TERMS AND CONDITIONS.

SUBLANDLORD                                  SUBTENANT

HI/FN, INC.,                                 NETFLIX.COM. INC.,
a Delaware corporation                       a California corporation


By: /s/ R.J. Farnham                         By: /s/ Reed Hastings
    -----------------------------------          -------------------------------

Name: R.J. Farnham                           Name: Reed Hastings
      ---------------------------------            -----------------------------

Its: President                               Its: President
     ----------------------------------           ------------------------------

Date: 1-6-99                                 Date: 3 JAN 98
      ---------------------------------            -----------------------------

By: /s/ William R. Walker                    By: /s/ Marc Randolph
    -----------------------------------          -------------------------------

Name: William R. Walker                      Name: Marc Randolph
      ---------------------------------            -----------------------------

Its: Secretary                               Its: Secretary
     ----------------------------------           ------------------------------

Date: JAN 9 1999                             Date: 5 Jan 98
      ---------------------------------            -----------------------------

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