Revenue Recognition

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following tables summarize streaming revenues, paid net membership additions (losses), and ending paid memberships by region for the years ended December 31, 2023, 2022 and 2021, respectively:

United States and Canada (UCAN)

	As of/Year Ended December 31,
	2023		2022		2021
	(in thousands)
Revenues	$	14,873,783	$	14,084,643	$	12,972,100
Paid net membership additions (losses)	5,832		(919)		1,279
Paid memberships at end of period (1)	80,128		74,296		75,215

Europe, Middle East, and Africa (EMEA)

	As of/Year Ended December 31,
	2023		2022		2021
	(in thousands)
Revenues	$	10,556,487	$	9,745,015	$	9,699,819
Paid net membership additions	12,084		2,693		7,338
Paid memberships at end of period (1)	88,813		76,729		74,036

Latin America (LATAM)

	As of/Year Ended December 31,
	2023		2022		2021
	(in thousands)
Revenues	$	4,446,461	$	4,069,973	$	3,576,976
Paid net membership additions	4,298		1,738		2,424
Paid memberships at end of period (1)	45,997		41,699		39,961

Asia-Pacific (APAC)

	As of/Year Ended December 31,
	2023		2022		2021
	(in thousands)
Revenues	$	3,763,727	$	3,570,221	$	3,266,601
Paid net membership additions	7,315		5,391		7,140
Paid memberships at end of period (1)	45,338		38,023		32,632

(1) A paid membership (also referred to as a paid subscription) is defined as a membership that has the right to receive Netflix service following sign-up and a method of payment being provided, and that is not part of a free trial or certain other promotions that may be offered by the Company to new or rejoining members. Certain members have the option to add extra member sub accounts. These extra member sub accounts are not included in paid memberships. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations generally become effective at the end of the prepaid membership period. Involuntary cancellations, as a result of a failed method of payment, become effective immediately. 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.

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, 2023, total deferred revenue was $1,443 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 $178 million increase in deferred revenue as compared to the balance of $1,265 million for the year ended December 31, 2022, is a result of the increase in membership fees billed due to increased memberships.