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Segment Information (Tables)
9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Information On Reportable Segments And Reconciliation To Consolidated Net Income
The following tables represent segment information for the quarter ended September 30, 2012:
 
 
As of/ Three months ended September 30, 2012
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total subscriptions at end of period (1)
25,101

 
4,311

 
8,606

 

Revenues
$
556,027

 
$
77,744

 
$
271,318

 
$
905,089

Cost of revenues and marketing expense
465,079

 
170,121

 
140,671

 
775,871

Contribution profit (loss)
$
90,948

 
$
(92,377
)
 
$
130,647

 
$
129,218

Other operating expenses
 
 
 
 
 
 
113,083

Operating income
 
 
 
 
 
 
16,135

Other income (expense)
 
 
 
 
 
 
(4,189
)
Provision for income taxes
 
 
 
 
 
 
4,271

Net income
 
 
 
 
 
 
$
7,675

 
As of/ Nine months ended September 30, 2012
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total subscriptions at end of period (1)
25,101

 
4,311

 
8,606

 

Revenues
$
1,595,397

 
$
186,142

 
$
882,504

 
$
2,664,043

Cost of revenues and marketing expense
1,354,769

 
470,629

 
471,958

 
2,297,356

Contribution profit (loss)
$
240,628

 
$
(284,487
)
 
$
410,546

 
$
366,687

Other operating expenses
 
 
 
 
 
 
336,333

Operating income
 
 
 
 
 
 
30,354

Other income (expense)
 
 
 
 
 
 
(14,778
)
Provision for income taxes
 
 
 
 
 
 
6,321

Net income
 
 
 
 
 
 
$
9,255


The following tables represent the Company’s segment information for the quarter ended September 30, 2011:
 
 
As of/ Three months ended September 30, 2011
 
Domestic
 
International
 
Consolidated
 
(in thousands)
Total unique subscribers at end of period (2)
23,789

 
1,480

 
25,269

Revenues
$
799,152

 
$
22,687

 
$
821,839

Cost of revenues and marketing expense
579,720

 
46,005

 
625,725

Contribution profit (loss)
$
219,432

 
$
(23,318
)
 
$
196,114

Other operating expenses
 
 
 
 
99,272

Operating income
 
 
 
 
96,842

Other income (expense)
 
 
 
 
(3,219
)
Provision for income taxes
 
 
 
 
31,163

Net income
 
 
 
 
$
62,460



 
As of/ Nine months ended September 30, 2011
 
Domestic
 
International
 
Consolidated
 
(in thousands)
Total unique subscribers at end of period (2)
23,789

 
1,480

 
25,269

Revenues
$
2,275,140

 
$
53,862

 
$
2,329,002

Cost of revenues and marketing expense
1,655,828

 
97,268

 
1,753,096

Contribution profit (loss)
$
619,312

 
$
(43,406
)
 
$
575,906

Other operating expenses
 
 
 
 
261,710

Operating income
 
 
 
 
314,196

Other income (expense)
 
 
 
 
(11,509
)
Provision for income taxes
 
 
 
 
111,780

Net income
 
 
 
 
$
190,907




(1) A subscription is defined as the right to receive either the Netflix streaming service or Netflix DVD service. In connection with the Company's subscription services, the Company offers free-trial memberships to new and certain rejoining members. A method of payment is required to be provided even during the free-trial period for the membership to be defined as a subscription and included in the above metrics. Total unique subscribers and total subscriptions include those subscribers who are on a free-trial. Paid unique subscribers and paid subscriptions exclude free trial memberships. A subscription would cease to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations become effective at the end of the monthly subscription period, while involuntary cancellation of the service, as a result of a failed method of payment, becomes effective immediately.

(2) For purposes of determining the number of unique subscribers, domestic subscribers who have elected both a DVD and a streaming subscription plan are considered a single unique subscriber.