Balance Sheet Components

Content Library

Content library consisted of the following:



	As of
	September 30, 2012									December 31, 2011
	Streaming			DVD			Total			Streaming			DVD			Total
	(in thousands)
Total content library, gross	$	4,021,055		$	525,634		$	4,546,689		$	2,552,284		$	599,155		$	3,151,439
Accumulated amortization	(1,343,859		)	(500,495		)	(1,844,354		)	(632,270		)	(552,526		)	(1,184,796		)
Total content library, net	2,677,196			25,139			2,702,335			1,920,014			46,629			1,966,643
Current content library, net	1,335,769			—			1,335,769			919,709			—			919,709
Non-current content library, net	$	1,341,427		$	25,139		$	1,366,566		$	1,000,305		$	46,629		$	1,046,934

Content Liabilities

Content liabilities consisted of the following:



	As of
	September 30, 2012						December 31, 2011
	Streaming		DVD		Total		Streaming		DVD		Total
	(in thousands)
Content liabilities	$	1,260,999	$	19,886	$	1,280,885	$	915,796	$	19,240	$	935,036
Non-current content liabilities	1,026,227		4,752		1,030,979		739,628		—		739,628
Total content liabilities	$	2,287,226	$	24,638	$	2,311,864	$	1,655,424	$	19,240	$	1,674,664

The Company typically enters into multi-year streaming content licenses with studios and other distributors that may result in an increase in the streaming content library and a corresponding increase in streaming content liabilities. The payment terms for these streaming license fees may extend over the term of the license agreement, which typically ranges from six months to five years. In the nine months ended September 30, 2012, streaming content liabilities increased $631.8 million, as compared to a higher increase in streaming content library, net, of $757.2 million due to payments exceeding amortization of the streaming content library.

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:



		As of
		September 30, 2012			December 31, 2011
		(in thousands)
Computer equipment	3 years	$	79,851		$	67,090
Operations and other equipment	5 years	100,226			100,306
Software	3 years	38,450			35,356
Furniture and fixtures	3 years	17,014			17,310
Buildings	30 years	40,681			40,681
Leasehold improvements	Over life of lease	43,168			44,473
Capital work-in-progress		10,443			822
Property and equipment, gross		329,833			306,038
Less: Accumulated depreciation		(196,230		)	(169,685		)
Property and equipment, net		$	133,603		$	136,353