Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

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



	As of
	June 30, 2018		December 31, 2017
	(in thousands)
United States	$	312,872	$	289,875
International	36,774		29,529

Information on Reportable Segments And Reconciliation To Consolidated Net Income

The following tables represent segment information for the three and six months ended June 30, 2018:



	As of/ Three Months Ended June 30, 2018
	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	57,379		72,762		2,999		—
Revenues	$	1,893,222	$	1,921,144	$	92,904	$	3,907,270
Cost of revenues	925,703		1,324,240		39,924		2,289,867
Marketing	227,961		298,819		—		526,780
Contribution profit	$	739,558	$	298,085	$	52,980	$	1,090,623
Other operating expenses							628,410
Operating income							462,213
Other income (expense)							(33,577		)
Provision for income taxes							44,287
Net income							$	384,349



	As of/ Six Months Ended June 30, 2018
	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	57,379		72,762		2,999		—
Revenues	$	3,713,241	$	3,703,230	$	191,655	$	7,608,126
Cost of revenues	1,820,576		2,583,049		82,317		4,485,942
Marketing	455,983		550,019		—		1,006,002
Contribution profit	$	1,436,682	$	570,162	$	109,338	$	2,116,182
Other operating expenses							1,207,391
Operating income							908,791
Other income (expense)							(180,539		)
Provision for income taxes							53,779
Net income							$	674,473

The following tables represent segment information for the three and six months ended June 30, 2017:



	As of/ Three Months Ended June 30, 2017
	Domestic Streaming		International Streaming			Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	51,921		52,031			3,758		—
Revenues	$	1,505,499	$	1,165,228		$	114,737	$	2,785,464
Cost of revenues	831,962		1,017,612			52,734		1,902,308
Marketing	113,608		160,715			—		274,323
Contribution profit (loss)	$	559,929	$	(13,099	)	$	62,003	$	608,833
Other operating expenses								481,026
Operating income								127,807
Other income (expense)								(113,845		)
Benefit from income taxes								(51,638		)
Net income								$	65,600



	As of/Six Months Ended June 30, 2017
	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Total memberships at end of period (1)	51,921		52,031		3,758		—
Revenues	$	2,975,541	$	2,211,427	$	235,131	$	5,422,099
Cost of revenues	1,581,450		1,864,929		112,953		3,559,332
Marketing	228,646		316,947		—		545,593
Contribution profit	$	1,165,445	$	29,551	$	122,178	$	1,317,174
Other operating expenses							932,425
Operating income							384,749
Other income (expense)							(146,995		)
Benefit from income taxes							(6,068		)
Net income							$	243,822

The following table represents the amortization of content assets:



	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Three months ended June 30,
2018	$	751,947	$	1,065,870	$	11,154	$	1,828,971
2017	696,688		854,106		16,511		1,567,305
Six months ended June 30,
2018	1,482,219		2,084,442		22,288		3,588,949
2017	1,305,436		1,551,041		35,109		2,891,586

(1)

A membership (also referred to as a subscription) 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 certain new and 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.