Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Long-lived Assets by Geographic Areas

The Company's long-lived tangible assets were located as follows:

	As of
	September 30, 2014		December 31, 2013
	(in thousands)
United States	$	131,839	$	126,455
International	12,308		7,150

Information On Reportable Segments And Reconciliation To Consolidated Net Income

The following tables represent segment information for the quarter ended September 30, 2014:

	As of/ Three months ended September 30, 2014
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total members at end of period (1)	37,219		15,843			5,986		—
Revenues	$	877,150	$	345,685		$	186,597	$	1,409,432
Cost of revenues	565,251		291,942			97,201		954,394
Marketing	61,045		84,609			—		145,654
Contribution profit (loss)	$	250,854	$	(30,866	)	$	89,396	$	309,384
Other operating expenses								198,977
Operating income								110,407
Other income (expense)								(12,870		)
Provision for income taxes								38,242
Net income								$	59,295

	As of/ Nine months ended September 30, 2014
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total members at end of period (1)	37,219		15,843			5,986		—
Revenues	$	2,513,992	$	920,264		$	585,672	$	4,019,928
Cost of revenues	1,628,568		803,906			305,954		2,738,428
Marketing	206,030		197,485			—		403,515
Contribution profit (loss)	$	679,394	$	(81,127	)	$	279,718	$	877,985
Other operating expenses								540,383
Operating income								337,602
Other income (expense)								(33,749		)
Provision for income taxes								120,425
Net income								$	183,428

The following tables represent segment information for the quarter ended September 30, 2013:

	As of/ Three months ended September 30, 2013
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total members at end of period (1)	31,092		9,188			7,148		—
Revenues	$	701,083	$	183,051		$	221,865	$	1,105,999
Cost of revenues	473,965		209,811			115,124		798,900
Marketing	60,637		47,537			54		108,228
Contribution profit (loss)	$	166,481	$	(74,297	)	$	106,687	$	198,871
Other operating expenses								141,751
Operating income								57,120
Other income (expense)								(7,629		)
Provision for income taxes								17,669
Net income								$	31,822

	As of/ Nine months ended September 30, 2013
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total members at end of period (1)	31,092		9,188			7,148		—
Revenues	$	2,010,821	$	490,972		$	697,539	$	3,199,332
Cost of revenues	1,366,897		561,103			368,526		2,296,526
Marketing	194,779		146,919			227		341,925
Contribution profit (loss)	$	449,145	$	(217,050	)	$	328,786	$	560,881
Other operating expenses								414,822
Operating income								146,059
Other income (expense)								(48,989		)
Provision for income taxes								33,088
Net income								$	63,982

The following table represents the amortization of the content library:

	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
Three months ended September 30,	(in thousands)
2014	$	433,266	$	252,888	$	18,269	$	704,423
2013	363,787		189,607		17,546		570,940
Nine months ended September 30,
2014	1,229,477		696,449		51,313		1,977,239
2013	1,043,976		505,408		53,492		1,602,876

The following table represents total content library, net:

	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
As of September 30, 2014	$	3,334,646	$	1,276,686	$	27,531	$	4,638,863
As of December 31, 2013	2,973,023		804,690		19,779		3,797,492

(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. Memberships are assigned to territories based on the geographic location used at time of sign up as determined by the Company's internal systems, which utilize industry standard geo-location technology. 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 is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations become effective at the end of the prepaid membership period, while involuntary cancellation of the service, as a result of a failed method of payment, becomes effective immediately.