Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

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



	As of
	September 30, 2015		December 31, 2014
	(in thousands)
United States	$	168,569	$	138,704
International	12,699		11,171

Information on Reportable Segments And Reconciliation To Consolidated Net Income

The following tables represent segment information for the periods ended September 30, 2015:



	As of/ Three Months Ended September 30, 2015
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	43,181		25,987			5,060		—
Revenues	$	1,063,961	$	516,870		$	157,524	$	1,738,355
Cost of revenues	644,914		451,251			77,793		1,173,958
Marketing	74,835		133,267			—		208,102
Contribution profit (loss)	$	344,212	$	(67,648	)	$	79,731	$	356,295
Other operating expenses								282,654
Operating income								73,641
Other income (expense)								(31,403		)
Provision for income taxes								12,806
Net income								$	29,432



	As of/ Nine Months Ended September 30, 2015
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	43,181		25,987			5,060		—
Revenues	$	3,074,406	$	1,387,030		$	494,742	$	4,956,178
Cost of revenues	1,840,134		1,249,495			252,482		3,342,111
Marketing	237,813		362,106			—		599,919
Contribution profit (loss)	$	996,459	$	(224,571	)	$	242,260	$	1,014,148
Other operating expenses								768,216
Operating income								245,932
Other income (expense)								(124,778		)
Provision for income taxes								41,691
Net income								$	79,463

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



	As of/ Three Months Ended September 30, 2014
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships 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 memberships 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 table represents the amortization of the content library:



	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Three months ended September 30,
2015	$	493,025	$	378,378	$	18,589	$	889,992
2014	433,266		252,888		18,269		704,423
Nine months ended September 30,
2015	1,387,242		1,056,279		60,587		2,504,108
2014	1,229,477		696,449		51,313		1,977,239

The following table represents total content library, net:



	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
As of September 30, 2015	$	4,367,750	$	2,193,785	$	25,439	$	6,586,974
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.