Balance Sheet Components

Content Assets

Content assets consisted of the following:



	As of December 31,
	2018		2017
	(in thousands)

Licensed content, net	$	14,081,463	$	11,771,778
Produced content, net
Released, less amortization	2,403,896		1,427,256
In production	3,305,126		1,311,137
In development and pre-production	311,842		158,517
	6,020,864		2,896,910
DVD, net	9,813		13,301
Total	$	20,112,140	$	14,681,989

Current content assets, net	$	5,151,186	$	4,310,934
Non-current content assets, net	$	14,960,954	$	10,371,055

On average, over 90% of a licensed or produced streaming content asset is expected to be amortized within four years after its month of first availability.

As of December 31, 2018, over 30% of the $20.1 billion unamortized cost is expected to be amortized within one year and 33% and 82% of the $2.4 billion unamortized cost of the produced content that has been released is expected to be amortized within one year and three years, respectively.

As of December 31, 2018, the amount of accrued participations and residuals was not material.

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:



	As of December 31,						Estimated Useful Lives (in Years)
	2018			2017			Estimated Useful Lives (in Years)
	(in thousands)
Leasehold improvements	$	282,028		$	229,848		Over life of lease
Information technology	224,296			223,850			3 years
Furniture and fixtures	63,667			49,217			3-15 years
Buildings	73,468			40,681			30 years
Corporate aircraft	62,560			30,039			8 years
DVD operations equipment	53,416			59,316			5 years
Machinery and equipment	1,692			—			3 years
Land	6,125			—
Capital work-in-progress	19,548			8,267
Property and equipment, gross	786,800			641,218
Less: Accumulated depreciation	(368,519		)	(321,814		)
Property and equipment, net	$	418,281		$	319,404

Deferred Revenue

Deferred revenue consists of membership fees billed that have not been recognized, as well as gift and other prepaid memberships that have not been fully redeemed. As of December 31, 2018, total deferred revenue was $761 million, the vast majority of which was related to membership fees billed that are expected to be recognized as revenue within the next month. The remaining deferred revenue balance, which is related to gift cards and other prepaid memberships, will be recognized as revenue over the period of service after redemption, which is expected to occur over the next 12 months. The $142 million increase in deferred revenue as compared to the year ended December 31, 2017 is a result of the increase in membership fees billed due to increased memberships and average monthly revenue per paying memberships.