Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

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



	As of
	September 30, 2018		December 31, 2017
	(in thousands)
United States	$	331,336	$	289,875
International	39,816		29,529

Information on Reportable Segments And Reconciliation To Consolidated Net Income

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



	As of/ Three Months Ended September 30, 2018
	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Total paid memberships at end of period	56,957		73,465		2,828
Total memberships at end of period (1)	58,464		78,635		2,852
Revenues	$	1,937,314	$	1,973,283	$	88,777	$	3,999,374
Cost of revenues	991,823		1,383,422		37,101		2,412,346
Marketing	183,521		251,748		—		435,269
Contribution profit	$	761,970	$	338,113	$	51,676	$	1,151,759
Other operating expenses							671,091
Operating income							480,668
Other income (expense)							(101,858		)
Benefit for income taxes							(24,025		)
Net income							$	402,835



	As of/ Nine Months Ended September 30, 2018
	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Total paid memberships at end of period	56,957		73,465		2,828
Total memberships at end of period (1)	58,464		78,635		2,852
Revenues	$	5,650,555	$	5,676,513	$	280,432	$	11,607,500
Cost of revenues	2,812,399		3,966,471		119,418		6,898,288
Marketing	639,504		801,767		—		1,441,271
Contribution profit	$	2,198,652	$	908,275	$	161,014	$	3,267,941
Other operating expenses							1,878,482
Operating income							1,389,459
Other income (expense)							(282,397		)
Provision for income taxes							29,754
Net income							$	1,077,308

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



	As of/ Three Months Ended September 30, 2017
	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Total paid memberships at end of period	51,345		52,678		3,520
Total memberships at end of period (1)	52,772		56,476		3,569
Revenues	$	1,547,210	$	1,327,435	$	110,214	$	2,984,859
Cost of revenues	864,408		1,081,485		47,087		1,992,980
Marketing	128,901		183,589		—		312,490
Contribution profit (loss)	$	553,901	$	62,361	$	63,127	$	679,389
Other operating expenses							470,762
Operating income							208,627
Other income (expense)							(92,390		)
Benefit from income taxes							(13,353		)
Net income							$	129,590



	As of/ Nine Months Ended September 30, 2017
	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Total paid memberships at end of period	51,345		52,678		3,520
Total memberships at end of period (1)	52,772		56,476		3,569
Revenues	$	4,522,751	$	3,538,862	$	345,345	$	8,406,958
Cost of revenues	2,445,858		2,946,414		160,040		5,552,312
Marketing	357,547		500,536		—		858,083
Contribution profit	$	1,719,346	$	91,912	$	185,305	$	1,996,563
Other operating expenses							1,403,187
Operating income							593,376
Other income (expense)							(239,385		)
Benefit from income taxes							(19,421		)
Net income							$	373,412

The following table represents the amortization of content assets:



	Domestic Streaming		International Streaming		Domestic DVD		Consolidated
	(in thousands)
Three months ended September 30,
2018	$	800,884	$	1,110,883	$	9,959	$	1,921,726
2017	727,832		899,645		13,259		1,640,736
Nine months ended September 30,
2018	2,283,102		3,195,326		32,247		5,510,675
2017	2,033,268		2,450,686		48,368		4,532,322

(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.