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Segment Information (Tables)
6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Information On Reportable Segments And Reconciliation To Consolidated Net Income
The following tables represent segment information for the quarter ended June 30, 2013:
 
 
As of/ Three months ended June 30, 2013
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total members at end of period (1)
29,807

 
7,747

 
7,508

 

Revenues
$
671,089

 
$
165,902

 
$
232,381

 
$
1,069,372

Cost of revenues
449,473

 
182,885

 
121,167

 
753,525

Marketing
70,302

 
48,850

 
2,608

 
121,760

Contribution profit (loss)
$
151,314

 
$
(65,833
)
 
$
108,606

 
$
194,087

Other operating expenses
 
 
 
 
 
 
136,970

Operating income
 
 
 
 
 
 
57,117

Other income (expense)
 
 
 
 
 
 
(10,468
)
Provision for income taxes
 
 
 
 
 
 
17,178

Net income
 
 
 
 
 
 
$
29,471

 
Three months ended June 30, 2013
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Amortization of content library
$
344,441

 
$
165,809

 
$
17,709

 
$
527,959

 
As of/ Six months ended June 30, 2013
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total members at end of period (1)
29,807

 
7,747

 
7,508

 

Revenues
$
1,309,738

 
$
307,921

 
$
475,674

 
$
2,093,333

Cost of revenues
885,979

 
347,909

 
246,500

 
1,480,388

Marketing
141,095

 
102,765

 
7,075

 
250,935

Contribution profit (loss)
$
282,664

 
$
(142,753
)
 
$
222,099

 
$
362,010

Other operating expenses
 
 
 
 
 
 
273,071

Operating income
 
 
 
 
 
 
88,939

Other income (expense)
 
 
 
 
 
 
(41,360
)
Provision for income taxes
 
 
 
 
 
 
15,419

Net income
 
 
 
 
 
 
$
32,160

 
Six months ended June 30, 2013
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Amortization of content library
$
680,189

 
$
315,801

 
$
35,946

 
$
1,031,936

 
As of June 30, 2013
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total content library, net
$
2,413,819

 
$
606,841

 
$
25,151

 
$
3,045,811


The following tables represent the Company’s segment information for the quarter ended June 30, 2012:
 
As of/ Three months ended June 30, 2012
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total members at end of period (1)
23,938

 
3,624

 
9,240

 

Revenues
$
532,705

 
$
64,973

 
$
291,485

 
$
889,163

Cost of revenues
378,574

 
108,542

 
156,312

 
643,428

Marketing
66,732

 
45,858

 
1,374

 
113,964

Contribution profit (loss)
$
87,399

 
$
(89,427
)
 
$
133,799

 
$
131,771

Other operating expenses
 
 
 
 
 
 
115,617

Operating income
 
 
 
 
 
 
16,154

Other income (expense)
 
 
 
 
 
 
(5,499
)
Provision for income taxes
 
 
 
 
 
 
4,491

Net income
 
 
 
 
 
 
$
6,164


 
Three months ended June 30, 2012
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Amortization of content library
$
275,495

 
$
100,502

 
$
16,304

 
$
392,301

 
As of/ Six months ended June 30, 2012
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total members at end of period (1)
23,938

 
3,624

 
9,240

 

Revenues
$
1,039,370

 
$
108,398

 
$
611,186

 
$
1,758,954

Cost of revenues
739,350

 
199,953

 
328,058

 
1,267,361

Marketing
140,137

 
100,555

 
3,200

 
243,892

Contribution profit (loss)
$
159,883

 
$
(192,110
)
 
$
279,928

 
$
247,701

Other operating expenses
 
 
 
 
 
 
233,482

Operating income
 
 
 
 
 
 
14,219

Other income (expense)
 
 
 
 
 
 
(10,589
)
Provision for income taxes
 
 
 
 
 
 
2,050

Net income
 
 
 
 
 
 
$
1,580

 
Six months ended June 30, 2012
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Amortization of content library
$
530,020

 
$
185,713

 
$
36,350

 
$
752,083

The following table represents the Company’s segment information as of December 31, 2012:
 
As of 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



(1)
A membership (also referred to as a subscription) is defined as the right to receive either the Netflix streaming service or Netflix DVD service. In connection with these services, the Company offers free-trial memberships to new and certain rejoining members.  For inclusion in the definition of a member in the above metrics, a method of payment is required to be provided even during the free-trial period. Total members therefore include those who are on a free-trial and have provided a method of payment. A membership would be canceled and cease to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations become effective at the end of the monthly membership period, while involuntary cancellation of the service, as a result of a failed method of payment, becomes effective immediately.