8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________

FORM 8-K

__________________________________

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

December 16, 2019

__________________________________

NETFLIX, INC.

(Exact name of registrant as specified in its charter)

__________________________________

Delaware	001-35727	77-0467272
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
100 Winchester Circle, Los Gatos, California		95032
(Address of principal executive offices)		(Zip Code)

(408) 540-3700

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

__________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.001 per share	NFLX	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Item 2.02 Results of Operations and Financial Condition.

On December 16, 2019, Netflix, Inc. (the "Company") released historical streaming revenue, membership and average revenue per paying streaming membership by region. In light of the Company's growing number of memberships and revenue from outside the United States, this regional reporting is consistent with how the Company reviews and manages its membership and revenue trends.

The historical revenue and membership information by region for the three month periods ended March 31, 2017, 2018, and 2019, June 30, 2017, 2018 and 2019, September 30, 2017, 2018 and 2019, and December 31, 2017 and 2018, and for the twelve month periods ending December 31, 2017 and 2018 and the nine month period ended September 30, 2019 are attached hereto as Exhibit 99.1 and are incorporated herein by reference.

The information in this report shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly stated by specific reference in such filing.

Item 9.01 Financial Statement and Exhibits.

(d)   Exhibit

99.1* Streaming Revenue and Membership Information by Region

* This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		NETFLIX, INC.
Date:	December 16, 2019
		/s/ Spencer Neumann
		Spencer Neumann
		Chief Financial Officer

EX-99.1

Exhibit 99.1

Netflix, Inc.

Streaming Revenue and Membership Information by Region

(unaudited)

(in thousands, except for average monthly revenue per paying membership and percentages)

	As Of / Three Months Ended												As of / Year Ended
	March 31, 2017			June 30, 2017			September 30, 2017			December 31, 2017			December 31, 2017
United States and Canada (UCAN)
Revenues (1)	$	1,586,167		$	1,624,397		$	1,674,308		$	1,775,987		$	6,660,859
Paid net streaming membership additions	1,665			1,042			1,162			1,643			5,512
Paid streaming memberships at end of period	54,575			55,617			56,779			58,422			58,422
Average paid streaming memberships during period	53,743			55,096			56,198			57,601			55,660
Average monthly revenue per paying streaming membership	$9.84			$9.83			$9.93			$10.28			$9.97
% change as compared to prior-year period	16		%	14		%	8		%	6		%	11		%
Constant currency % change as compared to prior-year period*	16		%	15		%	8		%	6		%	11		%

(1) Excludes DVD revenues of $450 million for the year ended December 31, 2017. Total US revenues for the year ended December 31, 2017 was $6.6 billion.

Europe, Middle East and Africa (EMEA)
Revenues	$	482,282		$	533,098		$	614,707		$	732,726		$	2,362,813
Paid net streaming membership additions	1,868			1,453			1,983			2,869			8,173
Paid streaming memberships at end of period	19,699			21,152			23,135			26,004			26,004
Average paid streaming memberships during period	18,765			20,426			22,144			24,570			21,476
Average monthly revenue per paying streaming membership	$8.57			$8.70			$9.25			$9.94			$9.17
% change as compared to prior-year period	3		%	1		%	6		%	15		%	7		%
Constant currency % change as compared to prior-year period*	11		%	8		%	5		%	9		%	8		%

Latin America (LATAM)
Revenues	$	331,453		$	381,459		$	434,637		$	495,067		$	1,642,616
Paid net streaming membership additions	1,217			1,588			1,254			1,450			5,509
Paid streaming memberships at end of period	15,425			17,013			18,267			19,717			19,717
Average paid streaming memberships during period	14,817			16,219			17,640			18,992			16,917
Average monthly revenue per paying streaming membership	$7.46			$7.84			$8.21			$8.69			$8.09
% change as compared to prior-year period	21		%	20		%	14		%	17		%	17		%
Constant currency % change as compared to prior-year period*	15		%	15		%	13		%	17		%	15		%

Asia-Pacific (APAC)
Revenues	$	116,339		$	131,773		$	150,993		$	176,823		$	575,928
Paid net streaming membership additions	523			590			588			659			2,360
Paid streaming memberships at end of period	4,664			5,254			5,842			6,501			6,501
Average paid streaming memberships during period	4,403			4,959			5,548			6,172			5,271
Average monthly revenue per paying streaming membership	$8.81			$8.86			$9.07			$9.55			$9.11
% change as compared to prior-year period	9		%	3		%	3		%	8		%	6		%
Constant currency % change as compared to prior-year period*	6		%	2		%	2		%	7		%	4		%

1

	As Of / Three Months Ended												As of / Year Ended
	March 31, 2018			June 30, 2018			September 30, 2018			December 31, 2018			December 31, 2018
United States and Canada (UCAN)
Revenues (2)	$	1,976,157		$	2,049,546		$	2,094,850		$	2,160,979		$	8,281,532
Paid net streaming membership additions	2,487			961			1,140			1,747			6,335
Paid streaming memberships at end of period	60,909			61,870			63,010			64,757			64,757
Average paid streaming memberships during period	59,666			61,390			62,440			63,884			61,845
Average monthly revenue per paying streaming membership	$11.04			$11.13			$11.18			$11.28			$11.16
% change as compared to prior-year period	12		%	13		%	13		%	10		%	12		%
Constant currency % change as compared to prior-year period*	12		%	13		%	13		%	10		%	12		%

(2) Excludes DVD revenues of $366 million for the year ended December 31, 2018. Total US revenues for the year ended December 31, 2018 was $8.0 billion.

Europe, Middle East and Africa (EMEA)
Revenues	$	886,649		$	975,497		$	1,004,749		$	1,096,812		$	3,963,707
Paid net streaming membership additions	3,335			1,978			2,519			3,982			11,814
Paid streaming memberships at end of period	29,339			31,317			33,836			37,818			37,818
Average paid streaming memberships during period	27,672			30,328			32,577			35,827			31,601
Average monthly revenue per paying streaming membership	$10.68			$10.72			$10.28			$10.20			$10.45
% change as compared to prior-year period	25		%	23		%	11		%	3		%	14		%
Constant currency % change as compared to prior-year period*	11		%	11		%	10		%	6		%	9		%

Latin America (LATAM)
Revenues	$	540,182		$	568,071		$	562,307		$	567,137		$	2,237,697
Paid net streaming membership additions	1,543			1,535			1,320			1,962			6,360
Paid streaming memberships at end of period	21,260			22,795			24,115			26,077			26,077
Average paid streaming memberships during period	20,489			22,028			23,455			25,096			22,767
Average monthly revenue per paying streaming membership	$8.79			$8.60			$7.99			$7.53			$8.19
% change as compared to prior-year period	18		%	10		%	(3)		%	(13)		%	1		%
Constant currency % change as compared to prior-year period*	18		%	18		%	14		%	6		%	13		%

Asia-Pacific (APAC)
Revenues	$	199,117		$	221,252		$	248,691		$	276,756		$	945,816
Paid net streaming membership additions	893			978			1,089			1,146			4,106
Paid streaming memberships at end of period	7,394			8,372			9,461			10,607			10,607
Average paid streaming memberships during period	6,948			7,883			8,917			10,034			8,446
Average monthly revenue per paying streaming membership	$9.55			$9.36			$9.30			$9.19			$9.33
% change as compared to prior-year period	8		%	6		%	3		%	(4)		%	2		%
Constant currency % change as compared to prior-year period*	4		%	3		%	5		%	2		%	3		%

2

	As Of / Three Months Ended									As of / Nine Months Ended
	March 31, 2019			June 30, 2019			September 30, 2019			September 30, 2019
United States and Canada (UCAN)
Revenues (3)	$	2,256,851		$	2,501,199		$	2,621,250		$	7,379,300
Paid net streaming membership additions (losses)	1,876			(132)			613			2,357
Paid streaming memberships at end of period	66,633			66,501			67,114			67,114
Average paid streaming memberships during period	65,695			66,567			66,808			66,357
Average monthly revenue per paying streaming membership	$11.45			$12.52			$13.08			$12.36
% change as compared to prior-year period	4		%	12		%	17		%	11		%
Constant currency % change as compared to prior-year period*	4		%	13		%	17		%	11		%

(3) Excludes DVD revenues of $229 million for the nine months ended September 30, 2019. Total US revenues for the nine months ended September 30, 2019 was $7.0 billion.

Europe, Middle East and Africa (EMEA)
Revenues	$	1,233,379		$	1,319,087		$	1,428,040		$	3,980,506
Paid net streaming membership additions	4,724			1,687			3,126			9,537
Paid streaming memberships at end of period	42,542			44,229			47,355			47,355
Average paid streaming memberships during period	40,180			43,386			45,792			43,119
Average monthly revenue per paying streaming membership	$10.23			$10.13			$10.40			$10.26
% change as compared to prior-year period	(4)		%	(6)		%	1		%	(3)		%
Constant currency % change as compared to prior-year period*	2		%	3		%	6		%	3		%

Latin America (LATAM)
Revenues	$	630,472		$	677,136		$	741,434		$	2,049,042
Paid net streaming membership additions	1,470			343			1,490			3,303
Paid streaming memberships at end of period	27,547			27,890			29,380			29,380
Average paid streaming memberships during period	26,812			27,719			28,635			27,722
Average monthly revenue per paying streaming membership	$7.84			$8.14			$8.63			$8.21
% change as compared to prior-year period	(11)		%	(5)		%	8		%	(3)		%
Constant currency % change as compared to prior-year period*	7		%	12		%	17		%	12		%

Asia-Pacific (APAC)
Revenues	$	319,602		$	349,494		$	382,304		$	1,051,400
Paid net streaming membership additions	1,534			801			1,543			3,878
Paid streaming memberships at end of period	12,141			12,942			14,485			14,485
Average paid streaming memberships during period	11,374			12,542			13,714			12,543
Average monthly revenue per paying streaming membership	$9.37			$9.29			$9.29			$9.31
% change as compared to prior-year period	(2)		%	(1)		%	—		%	(1)		%
Constant currency % change as compared to prior-year period*	3		%	5		%	3		%	4		%

*The Company believes that constant currency information is useful in analyzing the underlying trends in average monthly revenue per paying membership. In order to exclude the effect of foreign currency rate fluctuations on average monthly revenue per paying membership, the Company estimates current period revenue assuming foreign exchange rates had remained constant with foreign exchange rates from the prior-year period.

3

XML

Document and Entity Information Document and Entity Information	Dec. 16, 2019
Cover page.
Document Type	8-K
Document Period End Date	Dec. 16, 2019
Entity Registrant Name	NETFLIX INC
Entity Incorporation, State or Country Code	DE
Entity File Number	001-35727
Entity Tax Identification Number	77-0467272
Entity Address, Address Line One	100 Winchester Circle
Entity Address, City or Town	Los Gatos
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95032
City Area Code	408
Local Phone Number	540-3700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of each class	Common stock, par value $0.001 per share
Trading Symbol	NFLX
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001065280
Amendment Flag	false