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Segment Information (Tables)
6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Long-lived Assets by Geographic Areas
The Company's long-lived tangible assets were located as follows:
 
As of
 
June 30,
2014
 
December 31,
2013
 
(in thousands)
United States
$
133,451

 
$
126,455

International
8,264

 
7,150

Information On Reportable Segments And Reconciliation To Consolidated Net Income
The following tables represent segment information for the quarter ended June 30, 2014:
 
 
As of/ Three months ended June 30, 2014
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total members at end of period (1)
36,244

 
13,801

 
6,261

 

Revenues
$
838,225

 
$
307,461

 
$
194,721

 
$
1,340,407

Cost of revenues
546,223

 
266,697

 
101,928

 
914,848

Marketing
64,727

 
56,036

 

 
120,763

Contribution profit (loss)
$
227,275

 
$
(15,272
)
 
$
92,793

 
$
304,796

Other operating expenses
 
 
 
 
 
 
175,196

Operating income
 
 
 
 
 
 
129,600

Other income (expense)
 
 
 
 
 
 
(12,228
)
Provision for income taxes
 
 
 
 
 
 
46,354

Net income
 
 
 
 
 
 
$
71,018

 
As of/ Six months ended June 30, 2014
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total members at end of period (1)
36,244

 
13,801

 
6,261

 

Revenues
$
1,636,842

 
$
574,579

 
$
399,075

 
$
2,610,496

Cost of revenues
1,063,317

 
511,964

 
208,753

 
1,784,034

Marketing
144,985

 
112,876

 

 
257,861

Contribution profit (loss)
$
428,540

 
$
(50,261
)
 
$
190,322

 
$
568,601

Other operating expenses
 
 
 
 
 
 
341,406

Operating income
 
 
 
 
 
 
227,195

Other income (expense)
 
 
 
 
 
 
(20,879
)
Provision for income taxes
 
 
 
 
 
 
82,183

Net income
 
 
 
 
 
 
$
124,133



The following tables represent segment information for the quarter ended June 30, 2013:
 
As of/ Three months ended June 30, 2013
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total members at end of period (1)
29,807

 
7,747

 
7,508

 

Revenues
$
671,089

 
$
165,902

 
$
232,381

 
$
1,069,372

Cost of revenues
452,598

 
184,400

 
123,676

 
760,674

Marketing
67,177

 
47,335

 
99

 
114,611

Contribution profit (loss)
$
151,314

 
$
(65,833
)
 
$
108,606

 
$
194,087

Other operating expenses
 
 
 
 
 
 
136,970

Operating income
 
 
 
 
 
 
57,117

Other income (expense)
 
 
 
 
 
 
(10,468
)
Provision for income taxes
 
 
 
 
 
 
17,178

Net income
 
 
 
 
 
 
$
29,471

 
As of/ Six months ended June 30, 2013
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total members at end of period (1)
29,807

 
7,747

 
7,508

 

Revenues
$
1,309,738

 
$
307,921

 
$
475,674

 
$
2,093,333

Cost of revenues
892,932

 
351,292

 
253,402

 
1,497,626

Marketing
134,142

 
99,382

 
173

 
233,697

Contribution profit (loss)
$
282,664

 
$
(142,753
)
 
$
222,099

 
$
362,010

Other operating expenses
 
 
 
 
 
 
273,071

Operating income
 
 
 
 
 
 
88,939

Other income (expense)
 
 
 
 
 
 
(41,360
)
Provision for income taxes
 
 
 
 
 
 
15,419

Net income
 
 
 
 
 
 
$
32,160


The following table represents the amortization of the content library:
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
Three months ended June 30,
(in thousands)
2014
$
409,896

 
$
229,141

 
$
16,923

 
$
655,960

2013
344,441

 
165,809

 
17,709

 
527,959

Six months ended June 30,
 
 
 
 
 
 
 
2014
796,211

 
443,561

 
33,044

 
1,272,816

2013
680,189

 
315,801

 
35,946

 
1,031,936

The following table represents total content library, net:
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
As of June 30, 2014
$
3,196,275

 
$
914,239

 
$
24,623

 
$
4,135,137

As of December 31, 2013
2,973,023

 
804,690

 
19,779

 
3,797,492



(1)
A membership (also referred to as a subscription) is defined as the right to receive either the Netflix streaming service or Netflix DVD service. 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 new and certain rejoining members. For inclusion in the definition of a member in the above metrics, a method of payment is required to be provided even during the free-trial period. Total members therefore include those who are on a free-trial and have provided a method of payment. A membership would be canceled and cease to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations become effective at the end of the monthly membership period, while involuntary cancellation of the service, as a result of a failed method of payment, becomes effective immediately.