Segment Information (Tables)

6 Months Ended

Jun. 30, 2015

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



	As of
	June 30, 2015		December 31, 2014
	(in thousands)
United States	$	160,135	$	138,704
International	11,261		11,171

Information on Reportable Segments And Reconciliation To Consolidated Net Income

The following table represents segment information for the quarter ended June 30, 2015:



	As of/ Three Months Ended June 30, 2015
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	42,300		23,251			5,314		—
Revenues	$	1,025,913	$	454,763		$	164,018	$	1,644,694
Cost of revenues	612,691		422,966			86,095		1,121,752
Marketing	73,427		123,713			—		197,140
Contribution profit (loss)	$	339,795	$	(91,916	)	$	77,923	$	325,802
Other operating expenses								250,967
Operating income								74,835
Other income (expense)								(34,345		)
Provision for income taxes								14,155
Net income								$	26,335



	As of/ Six Months Ended June 30, 2015
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	42,300		23,251			5,314		—
Revenues	$	2,010,445	$	870,160		$	337,218	$	3,217,823
Cost of revenues	1,195,220		798,244			174,689		2,168,153
Marketing	162,978		228,839			—		391,817
Contribution profit (loss)	$	652,247	$	(156,923	)	$	162,529	$	657,853
Other operating expenses								485,562
Operating income								172,291
Other income (expense)								(93,375		)
Provision for income taxes								28,885
Net income								$	50,031

The following table represents segment information for the quarter ended June 30, 2014:



	As of/ Three Months Ended June 30, 2014
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	36,244		13,801			6,261		—
Revenues	$	838,225	$	307,461		$	194,721	$	1,340,407
Cost of revenues	546,223		266,697			101,928		914,848
Marketing	64,727		56,036			—		120,763
Contribution profit (loss)	$	227,275	$	(15,272	)	$	92,793	$	304,796
Other operating expenses								175,196
Operating income								129,600
Other income (expense)								(12,228		)
Provision for income taxes								46,354
Net income								$	71,018



	As of/ Six Months Ended June 30, 2014
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	36,244		13,801			6,261		—
Revenues	$	1,636,842	$	574,579		$	399,075	$	2,610,496
Cost of revenues	1,063,317		511,964			208,753		1,784,034
Marketing	144,985		112,876			—		257,861
Contribution profit (loss)	$	428,540	$	(50,261	)	$	190,322	$	568,601
Other operating expenses								341,406
Operating income								227,195
Other income (expense)								(20,879		)
Provision for income taxes								82,183
Net income								$	124,133

The following table represents the amortization of the content library:



	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Three months ended June 30,
2015	$	462,228	$	360,372	$	20,813	$	843,413
2014	409,896		229,141		16,923		655,960
Six months ended June 30,
2015	894,217		677,901		41,998		1,614,116
2014	796,211		443,561		33,044		1,272,816

The following table represents total content library, net:



	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
As of June 30, 2015	$	4,213,101	$	1,910,847	$	27,765	$	6,151,713
As of December 31, 2014	3,476,226		1,392,701		30,101		4,899,028

(1)

A membership (also referred to as a subscription or member) 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 membership in the above metrics, a method of payment is required to be provided even during the free-trial period. Total memberships 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.