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Revenue Recognition
9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company's primary source of revenues is from monthly membership fees. Members are billed in advance of the start of their monthly membership and revenues are recognized ratably over each monthly membership period. Revenues are presented net of the taxes that are collected from members and remitted to governmental authorities. The Company is the principal in all its relationships where partners, including consumer electronics (“CE”) manufacturers, multichannel video programming distributors (“MVPDs”), mobile operators and internet service providers (“ISPs”), provide access to the service as the Company retains control over service delivery to its members. Typically, payments made to the partners, such as for marketing, are expensed. However, if there is no distinct service provided in exchange for the payments made to the partners or if the price that the member pays is established by the partners and there is no standalone price for the Netflix service (for instance, in a bundle), these payments are recognized as a reduction of revenues.
The following tables summarize streaming revenues, paid net membership additions, and paid memberships at end of period by region for the three and nine months ended September 30, 2022 and 2021, respectively:

United States and Canada (UCAN)
As of/ Three Months EndedAs of/ Nine Months Ended
 September 30,
2022
September 30,
2021
September 30,
2022
September 30,
2021
 (in thousands)
Revenues$3,601,565 $3,257,697 $10,489,852 $9,663,312 
Paid net membership additions (losses)104 73 (1,828)88 
Paid memberships at end of period (1)73,387 74,024 73,387 74,024 
Europe, Middle East, and Africa (EMEA)
As of/ Three Months EndedAs of/ Nine Months Ended
 September 30,
2022
September 30,
2021
September 30,
2022
September 30,
2021
 (in thousands)
Revenues$2,375,814 $2,432,239 $7,394,880 $7,176,393 
Paid net membership additions (losses)568 1,804 (502)3,802 
Paid memberships at end of period (1)73,534 70,500 73,534 70,500 

Latin America (LATAM)
As of/ Three Months EndedAs of/ Nine Months Ended
 September 30,
2022
September 30,
2021
September 30,
2022
September 30,
2021
 (in thousands)
Revenues$1,023,945 $915,297 $3,053,127 $2,612,826 
Paid net membership additions (losses)312 330 (25)1,451 
Paid memberships at end of period (1)39,936 38,988 39,936 38,988 

Asia-Pacific (APAC)
As of/ Three Months EndedAs of/ Nine Months Ended
 September 30,
2022
September 30,
2021
September 30,
2022
September 30,
2021
 (in thousands)
Revenues$889,037 $834,002 $2,713,510 $2,395,896 
Paid net membership additions1,429 2,176 3,596 4,559 
Paid memberships at end of period (1)36,228 30,051 36,228 30,051 
(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. 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.
Total U.S. revenues, inclusive of DVD revenues not reported in the tables above, were $3.3 billion and $9.7 billion, respectively, for the three and nine months ended September 30, 2022 and $3.0 billion and $9.0 billion, respectively, for the three and nine months ended September 30, 2021. DVD revenues were $35 million and $112 million, respectively, for the three and nine months ended September 30, 2022 and $44 million and $140 million, respectively, for three and nine months ended September 30, 2021.
Deferred revenue consists of membership fees billed that have not been recognized, as well as gift cards and other prepaid memberships that have not been fully redeemed. As of September 30, 2022, total deferred revenue was $1,176 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 $33 million decrease in deferred revenue as compared to the balance of $1,209 million as of December 31, 2021 is primarily due to a decrease in the purchase of gift cards, partially offset by an increase in average monthly revenue per paying member.