Revenue Recognition

12 Months Ended

Dec. 31, 2024

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, 2024, 2023 and 2022, respectively. Hedging gains of $124 million are included in “Streaming revenues” for the

year ended December 31, 2024. No hedging gains and losses were recognized as “Streaming revenues” in the comparative prior year periods. See Note 7 Derivative Financial Instruments and Hedging Activities for further information.

United States and Canada (UCAN)

	As of/Year Ended December 31,
	2024		2023		2022
	(in thousands)
Streaming revenues	$	17,359,369	$	14,873,783	$	14,084,643
Paid net membership additions (losses)	9,497		5,832		(919)
Paid memberships at end of period (1)	89,625		80,128		74,296

Europe, Middle East, and Africa (EMEA)

	As of/Year Ended December 31,
	2024		2023		2022
	(in thousands)
Streaming revenues	$	12,387,035	$	10,556,487	$	9,745,015
Paid net membership additions	12,320		12,084		2,693
Paid memberships at end of period (1)	101,133		88,813		76,729

Latin America (LATAM)

	As of/Year Ended December 31,
	2024		2023		2022
	(in thousands)
Streaming revenues	$	4,839,816	$	4,446,461	$	4,069,973
Paid net membership additions	7,330		4,298		1,738
Paid memberships at end of period (1)	53,327		45,997		41,699

Asia-Pacific (APAC)

	As of/Year Ended December 31,
	2024		2023		2022
	(in thousands)
Streaming revenues	$	4,414,746	$	3,763,727	$	3,570,221
Paid net membership additions	12,203		7,315		5,391
Paid memberships at end of period (1)	57,541		45,338		38,023

(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 primarily 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, 2024, total deferred revenue was $1,521 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 $78 million increase in deferred revenue as compared to the balance of $1,443 million for the year ended December 31, 2023, is a result of the increase in membership fees billed due to increased memberships and price increases.