Information on Reportable Segments and Reconciliation to Consolidated Net Income | The following tables represent segment information for the year ended December 31, 2016: | | | | | | | | | | | | | | | | | | As of/Year ended December 31, 2016 | | Domestic Streaming | | International Streaming | | Domestic DVD | | Consolidated | | (in thousands) | Total memberships at end of period (1) | 49,431 |
| | 44,365 |
| | 4,114 |
| | — |
| Revenues | $ | 5,077,307 |
| | $ | 3,211,095 |
| | $ | 542,267 |
| | $ | 8,830,669 |
| Cost of revenues | 2,855,789 |
| | 2,911,370 |
| | 262,742 |
| | 6,029,901 |
| Marketing | 382,832 |
| | 608,246 |
| | — |
| | 991,078 |
| Contribution profit (loss) | $ | 1,838,686 |
| | $ | (308,521 | ) | | $ | 279,525 |
| | 1,809,690 |
| Other operating expenses | | | | | | | 1,429,897 |
| Operating income | | | | | | | 379,793 |
| Other income (expense) | | | | | | | (119,286 | ) | Provision for income taxes | | | | | | | 73,829 |
| Net income | | | | | | | $ | 186,678 |
|
| | | | | | | | | | | | | | | | | | Year ended December 31, 2016 | | Domestic Streaming | | International Streaming | | Domestic DVD | | Consolidated | | (in thousands) | Amortization of content assets | $ | 2,337,950 |
| | $ | 2,450,548 |
| | $ | 78,952 |
| | $ | 4,867,450 |
|
The following tables represent segment information for the year ended December 31, 2015: | | | | | | | | | | | | | | | | | | As of/Year ended December 31, 2015 | | Domestic Streaming | | International Streaming | | Domestic DVD | | Consolidated | | (in thousands) | Total memberships at end of period (1) | 44,738 |
| | 30,024 |
| | 4,904 |
| | — |
| Revenues | $ | 4,180,339 |
| | $ | 1,953,435 |
| | $ | 645,737 |
| | $ | 6,779,511 |
| Cost of revenues | 2,487,193 |
| | 1,780,375 |
| | 323,908 |
| | 4,591,476 |
| Marketing | 317,646 |
| | 506,446 |
| | — |
| | 824,092 |
| Contribution profit (loss) | $ | 1,375,500 |
| | $ | (333,386 | ) | | $ | 321,829 |
| | 1,363,943 |
| Other operating expenses | | | | | | | 1,058,117 |
| Operating income | | | | | | | 305,826 |
| Other income (expense) | | | | | | | (163,941 | ) | Provision for income taxes | | | | | | | 19,244 |
| Net income | | | | | | | $ | 122,641 |
|
| | | | | | | | | | | | | | | | | | Year ended December 31, 2015 | | Domestic Streaming | | International Streaming | | Domestic DVD | | Consolidated | | (in thousands) | Amortization of content assets | $ | 1,905,069 |
| | $ | 1,500,313 |
| | $ | 79,380 |
| | $ | 3,484,762 |
|
The following tables represent segment information for the year ended December 31, 2014: | | | | | | | | | | | | | | | | | | As of/Year ended December 31, 2014 | | Domestic Streaming | | International Streaming | | Domestic DVD | | Consolidated | | (in thousands) | Total memberships at end of period (1) | 39,114 |
| | 18,277 |
| | 5,767 |
| | — |
| Revenues | $ | 3,431,434 |
| | $ | 1,308,061 |
| | $ | 765,161 |
| | $ | 5,504,656 |
| Cost of revenues | 2,201,761 |
| | 1,154,117 |
| | 396,882 |
| | 3,752,760 |
| Marketing | 293,453 |
| | 313,733 |
| | — |
| | 607,186 |
| Contribution profit (loss) | $ | 936,220 |
| | $ | (159,789 | ) | | $ | 368,279 |
| | 1,144,710 |
| Other operating expenses | | | | | | | 742,062 |
| Operating income | | | | | | | 402,648 |
| Other income (expense) | | | | | | | (53,279 | ) | Provision for income taxes | | | | | | | 82,570 |
| Net income | | | | | | | $ | 266,799 |
|
| | | | | | | | | | | | | | | | | | Year ended December 31, 2014 | | Domestic Streaming | | International Streaming | | Domestic DVD | | Consolidated | | (in thousands) | Amortization of content assets | $ | 1,657,673 |
| | $ | 998,606 |
| | $ | 71,491 |
| | $ | 2,727,770 |
|
| | | (1) | A membership (also referred to as a subscription or a member) is defined as the right to receive the Netflix service following sign-up and a method of payment being provided. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by our internal systems, which utilize industry standard geo-location technology. We offer free-trial memberships to new and certain rejoining members. Total members include those who are on a free-trial as long as a method of payment has been provided. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations become effective at the end of the prepaid membership period, while involuntary cancellation of the service, as a result of a failed method of payment, becomes effective immediately except in limited circumstances where a short grace period is offered to ensure the streaming service is not interrupted for members who are impacted by payment processing delays by our banks or integrated payment partners. The number of members in a grace period at any given point is not material. |
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