Segment Information (Tables)

6 Months Ended

Jun. 30, 2016

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



	As of
	June 30, 2016		December 31, 2015
	(in thousands)
United States	$	147,812	$	159,566
International	15,052		13,846

Information on Reportable Segments And Reconciliation To Consolidated Net Income

The following table represents segment information for the three and six months ended June 30, 2016:



	As of/ Three Months Ended June 30, 2016
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	47,129		36,048			4,530		—
Revenues	$	1,208,271	$	758,201		$	138,732	$	2,105,204
Cost of revenues	707,106		698,162			67,830		1,473,098
Marketing	86,806		129,223			—		216,029
Contribution profit (loss)	$	414,359	$	(69,184	)	$	70,902	$	416,077
Other operating expenses								345,707
Operating income								70,370
Other income (expense)								(19,138		)
Provision for income taxes								10,477
Net income								$	40,755



	As of/ Six Months Ended June 30, 2016
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	47,129		36,048			4,530		—
Revenues	$	2,369,512	$	1,409,949		$	283,479	$	4,062,940
Cost of revenues	1,373,652		1,328,061			140,925		2,842,638
Marketing	168,748		255,291			—		424,039
Contribution profit (loss)	$	827,112	$	(173,403	)	$	142,554	$	796,263
Other operating expenses								676,440
Operating income								119,823
Other income (expense)								(28,712		)
Provision for income taxes								22,698
Net income								$	68,413

The following table represents segment information for the three and six months 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 the amortization of content assets:



	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Three months ended June 30,
2016	$	581,390	$	593,971	$	20,021	$	1,195,382
2015	462,228		360,372		20,813		843,413
Six months ended June 30,
2016	1,112,129		1,121,753		40,462		2,274,344
2015	894,217		677,901		41,998		1,614,116

(1)

A membership (also referred to as a subscription or a member) is defined as the right to receive Netflix service following sign-up and a method of payment being provided. 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. Total members include those who are on a free-trial as long as a method of payment has been provided. 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 except in limited circumstances where a short grace period is offered to ensure the streaming service is not interrupted for members who are impacted by payment processing delays by the Company's banks or integrated payment partners. The number of members in a grace period at any given point is not material.