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Segment Information (Tables)
12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Information On Reportable Segments And Reconciliation To Consolidated Net Income
The following table represents segment information for the year ended December 31, 2012:
 
 
As of/Year ended December 31, 2012
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total subscriptions at end of period (1)
27,146

 
6,121

 
8,224

 

Revenues
$
2,184,868

 
$
287,542

 
$
1,136,872

 
$
3,609,282

Cost of revenues
1,558,864

 
475,570

 
591,432

 
2,625,866

Marketing
276,072

 
201,283

 
7,374

 
484,729

Contribution profit (loss)
$
349,932

 
$
(389,311
)
 
$
538,066

 
$
498,687

Other operating expenses
 
 
 
 
 
 
448,695

Operating income
 
 
 
 
 
 
49,992

Other income (expense)
 
 
 
 
 
 
(19,512
)
Provision for income taxes
 
 
 
 
 
 
13,328

Net income
 
 
 
 
 
 
$
17,152



 
As of/Year ended December 31, 2012
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total content library, net
$
2,317,070

 
$
527,235

 
$
29,865

 
$
2,874,170

Amortization of content library
1,152,446

 
438,772

 
65,396

 
1,656,614


The following table represents the Company's segment information for the fourth quarter of 2011:
 
As of/Three Months ended December 31, 2011
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total subscriptions at end of period (1)
21,671

 
1,858

 
11,165

 

Revenues
$
476,334

 
$
28,988

 
$
370,253

 
$
875,575

Cost of revenues
345,026

 
55,909

 
174,220

 
575,155

Marketing
79,198

 
32,822

 
2,268

 
114,288

Contribution profit (loss)
$
52,110

 
$
(59,743
)
 
$
193,765

 
$
186,132

Other operating expenses
 
 
 
 
 
 
124,260

Operating income
 
 
 
 
 
 
61,872

Other income (expense)
 
 
 
 
 
 
(5,037
)
Provision for income taxes
 
 
 
 
 
 
21,616

Net income
 
 
 
 
 
 
$
35,219


The following tables represents the Company’s segment information for the years ended December 31, 2011 and 2010 based on the Company’s segment reporting prior to the fourth quarter of 2011:
 
 
As of/Year ended December 31, 2011
 
Domestic
 
International
 
Consolidated
 
(in thousands)
Total unique subscribers at end of period (1) (2)
24,395

 
1,858

 
26,253

Revenues
$
3,121,727

 
$
82,850

 
$
3,204,577

Cost of revenues
1,932,419

 
107,482

 
2,039,901

Marketing
$
324,121

 
$
78,517

 
402,638

Contribution profit (loss)
$
865,187

 
$
(103,149
)
 
$
762,038

Other operating expenses
 
 
 
 
385,970

Operating income
 
 
 
 
376,068

Other income (expense)
 
 
 
 
(16,546
)
Provision for income taxes
 
 
 
 
133,396

Net income
 
 
 
 
$
226,126




 
As of/Year ended December 31, 2010
 
Domestic
 
International
 
Consolidated
 
(in thousands)
Total unique subscribers at end of period (1) (2)
19,501

 
509

 
20,010

Revenues
$
2,159,008

 
$
3,617

 
$
2,162,625

Cost of revenues
1,350,542

 
6,813

 
1,357,355

Marketing
$
284,917

 
$
8,922

 
293,839

Contribution profit (loss)
$
523,549

 
$
(12,118
)
 
$
511,431

Other operating expenses
 
 
 
 
227,790

Operating income
 
 
 
 
283,641

Other income (expense)
 
 
 
 
(15,945
)
Provision for income taxes
 
 
 
 
106,843

Net income
 
 
 
 
$
160,853



(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. 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.