Netflix (NFLX) 10-Q 20 Oct 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	9 Months Ended
	Sep. 30, 2016shares
Document And Entity Information [Abstract]
Entity Registrant Name	NETFLIX INC
Entity Central Index Key	1,065,280
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	429,145,023

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenues	$ 2,290,188	$ 1,738,355	$ 6,353,128	$ 4,956,178
Cost of revenues	1,532,844	1,173,958	4,375,482	3,342,111
Marketing	282,043	208,102	706,082	599,919
Technology and development	216,099	171,762	626,907	469,929
General and administrative	153,166	110,892	418,798	298,287
Operating income	106,036	73,641	225,859	245,932
Other income (expense):
Interest expense	(35,536)	(35,333)	(106,528)	(97,287)
Interest and other income (expense)	8,627	3,930	50,907	(27,491)
Income before income taxes	79,127	42,238	170,238	121,154
Provision for income taxes	27,610	12,806	50,308	41,691
Net income	$ 51,517	$ 29,432	$ 119,930	$ 79,463
Earnings per share:
Basic (in dollars per share)	$ 0.12	$ 0.07	$ 0.28	$ 0.19
Diluted (in dollars per share)	$ 0.12	$ 0.07	$ 0.27	$ 0.18
Weighted-average common shares outstanding:
Basic (in shares)	428,937	426,869	428,514	425,289
Diluted (in shares)	438,389	437,606	438,180	435,849

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 51,517	$ 29,432	$ 119,930	$ 79,463
Other comprehensive income (loss):
Foreign currency translation adjustments	2,357	302	5,453	(33,628)
Change in unrealized gains (losses) on available-for-sale securities, net of tax of $(412), $(45), $810 and $113, respectively	(676)	(72)	1,325	184
Total other comprehensive income (loss)	1,681	230	6,778	(33,444)
Comprehensive income	$ 53,198	$ 29,662	$ 126,708	$ 46,019

Consolidated Statements of Com4

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Change in unrealized gains on available-for-sale securities, tax	$ (412)	$ (45)	$ 810	$ 113

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 51,517	$ 29,432	$ 119,930	$ 79,463
Adjustments to reconcile net income to net cash used in operating activities:
Additions to streaming content assets	(2,442,080)	(1,304,466)	(6,550,445)	(4,221,326)
Change in streaming content liabilities	529,885	104,684	1,674,125	922,163
Amortization of streaming content assets	1,224,108	871,403	3,457,990	2,443,521
Amortization of DVD content assets	19,284	18,589	59,746	60,587
Depreciation and amortization of property, equipment and intangibles	14,410	16,047	43,339	46,795
Stock-based compensation expense	43,495	32,834	130,029	88,865
Excess tax benefits from stock-based compensation	(12,762)	(37,726)	(37,401)	(106,154)
Other non-cash items	9,682	10,866	31,479	23,854
Deferred taxes	14,338	(29,417)	(20,141)	(70,691)
Changes in operating assets and liabilities:
Other current assets	10,250	66,695	48,649	81,448
Accounts payable	27,810	6,762	16,707	2,584
Accrued expenses	28,957	10,883	72,288	88,429
Deferred revenue	30,230	27,985	80,485	55,153
Other non-current assets and liabilities	(11,065)	(20,540)	(43,604)	615
Net cash used in operating activities	(461,941)	(195,969)	(916,824)	(504,694)
Cash flows from investing activities:
Acquisition of DVD content assets	(17,249)	(14,467)	(58,380)	(57,159)
Purchases of property and equipment	(27,366)	(37,820)	(46,605)	(78,394)
Change in other assets	125	(3,760)	676	(4,174)
Purchases of short-term investments	(128,136)	(66,444)	(181,590)	(225,333)
Proceeds from sale of short-term investments	171,747	43,887	198,687	144,247
Proceeds from maturities of short-term investments	24,855	31,125	112,555	82,182
Net cash provided by (used in) investing activities	23,976	(47,479)	25,343	(138,631)
Cash flows from financing activities:
Proceeds from issuance of common stock	3,819	35,089	11,587	69,809
Proceeds from issuance of debt	0	0	0	1,500,000
Issuance costs	0	0	0	(17,629)
Excess tax benefits from stock-based compensation	12,762	37,726	37,401	106,154
Other financing activities	58	(61)	170	(599)
Net cash provided by financing activities	16,639	72,754	49,158	1,657,735
Effect of exchange rate changes on cash and cash equivalents	(441)	(7,741)	2,151	(12,581)
Net (decrease) increase in cash and cash equivalents	(421,767)	(178,435)	(840,172)	1,001,829
Cash and cash equivalents, beginning of period	1,390,925	2,293,872	1,809,330	1,113,608
Cash and cash equivalents, end of period	$ 969,158	$ 2,115,437	$ 969,158	$ 2,115,437

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 969,158	$ 1,809,330
Short-term investments	374,098	501,385
Current content assets, net	3,632,399	2,905,998
Other current assets	218,238	215,127
Total current assets	5,193,893	5,431,840
Non-current content assets, net	6,677,674	4,312,817
Property and equipment, net	191,876	173,412
Other non-current assets	283,895	284,802
Total assets	12,347,338	10,202,871
Current liabilities:
Current content liabilities	3,497,214	2,789,023
Accounts payable	285,753	253,491
Accrued expenses	201,232	140,389
Deferred revenue	427,206	346,721
Total current liabilities	4,411,405	3,529,624
Non-current content liabilities	2,975,189	2,026,360
Long-term debt	2,373,966	2,371,362
Other non-current liabilities	57,812	52,099
Total liabilities	9,818,372	7,979,445
Commitments and contingencies (Note 6)
Stockholders’ equity:
Common stock, $0.001 par value; 4,990,000,000 shares authorized at September 30, 2016 and December 31, 2015; 429,145,023 and 427,940,440 issued and outstanding at September 30, 2016 and December 31, 2015, respectively	1,503,641	1,324,809
Accumulated other comprehensive loss	(36,530)	(43,308)
Retained earnings	1,061,855	941,925
Total stockholders’ equity	2,528,966	2,223,426
Total liabilities and stockholders’ equity	$ 12,347,338	$ 10,202,871

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	4,990,000,000	4,990,000,000
Common stock, shares issued (shares)	429,145,023	427,940,440
Common stock, shares outstanding (shares)	429,145,023	427,940,440

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies The accompanying consolidated interim financial statements of Netflix, Inc. and its wholly owned subsidiaries (the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S.”) and are consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission (the “SEC”) on January 28, 2016. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the streaming content asset amortization policy; the recognition and measurement of income tax assets and liabilities; and the valuation of stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On a regular basis, the Company evaluates the assumptions, judgments and estimates. Actual results may differ from these estimates. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim financial statements should be read in conjunction with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Interim results are not necessarily indicative of the results for a full year. The Company has three reportable segments: Domestic streaming, International streaming and Domestic DVD, all of which derive revenue from monthly membership fees. See Note 10 for further detail on the Company's segments. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Certain prior year amounts on the Consolidated Statements of Cash Flow have been reclassified to conform to the current year presentation. Specifically, the Company reclassified prepaid content from "Other current assets" on the Consolidated Balance Sheets to "Current content assets, net". The impact of reclassification on the cash flow resulted in a decrease in "Other current assets" and "Additions to streaming content assets" of $4.5 million in the three months ended September 30, 2015 , and an increase in "Other current assets" and "Additions to streaming content assets" of $26.8 million for the nine months ended September 30, 2015 . In the third quarter of 2016, the Company changed the amortization method of certain types of content given changes in estimated viewing patterns of this content. The effect of this change in estimate on operating income, net income and basic and diluted earnings per share was not material for the three and nine months ended September 30, 2016. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The Company will adopt ASU 2014-09 in the first quarter of 2018 and apply the full retrospective approach. The Company does not expect the impact on its consolidated financial statements to be material. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company will adopt ASU 2016-02 in the first quarter of 2019 and is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends Accounting Standards Codification ("ASC") Topic 718, Compensation – Stock Compensation . ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. The Company will adopt ASU 2016-09 in the first quarter of 2017 and is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands, except per share data) Basic earnings per share: Net income $ 51,517 $ 29,432 $ 119,930 $ 79,463 Shares used in computation: Weighted-average common shares outstanding 428,937 426,869 428,514 425,289 Basic earnings per share $ 0.12 $ 0.07 $ 0.28 $ 0.19 Diluted earnings per share: Net income $ 51,517 $ 29,432 $ 119,930 $ 79,463 Shares used in computation: Weighted-average common shares outstanding 428,937 426,869 428,514 425,289 Employee stock options 9,452 10,737 9,666 10,560 Weighted-average number of shares 438,389 437,606 438,180 435,849 Diluted earnings per share $ 0.12 $ 0.07 $ 0.27 $ 0.18 Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential common shares excluded from the diluted calculation: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Employee stock options 2,559 130 1,942 668

Short-term Investments

Short-term Investments	9 Months Ended
	Sep. 30, 2016
Short-Term Investments And Fair Value Measurement [Abstract]
Short-term Investments	Short-term Investments The Company’s investment policy is consistent with the definition of available-for-sale securities. The Company does not buy and hold securities principally for the purpose of selling them in the near future. The Company’s policy is focused on the preservation of capital, liquidity and investment return. From time to time, the Company may sell certain securities but the objectives are generally not to generate profits on short-term differences in price. The following tables summarize, by major security type, the Company’s assets that are measured at fair value on a recurring basis, the category using the fair value hierarchy and where they are classified on the Consolidated Balance Sheets: As of September 30, 2016 Amortized Gross Gross Estimated Cash and cash equivalents Short-term investments Non-current assets (1) (in thousands) Cash $ 920,513 $ — $ — $ 920,513 $ 917,936 $ — $ 2,577 Level 1 securities: Money market funds 52,737 — — 52,737 51,222 — 1,515 Level 2 securities: Corporate debt securities 220,826 770 (68 ) 221,528 — 221,528 — Government securities 110,860 159 — 111,019 — 111,019 — Certificates of deposit/commercial paper 9,817 — — 9,817 9,817 Agency securities 31,770 4 (40 ) 31,734 — 31,734 — Total $ 1,346,523 $ 933 $ (108 ) $ 1,347,348 $ 969,158 $ 374,098 $ 4,092 As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents Short-term investments Non-current assets (1) (in thousands) Cash $ 1,708,220 $ — $ — $ 1,708,220 $ 1,706,592 $ — $ 1,628 Level 1 securities: Money market funds 107,199 — — 107,199 102,738 — 4,461 Level 2 securities: Corporate debt securities 240,867 154 (409 ) 240,612 — 240,612 — Government securities 235,252 — (1,046 ) 234,206 — 234,206 — Agency securities 26,576 — (9 ) 26,567 — 26,567 — Total $ 2,318,114 $ 154 $ (1,464 ) $ 2,316,804 $ 1,809,330 $ 501,385 $ 6,089 (1) Primarily restricted cash that is related to workers compensation deposits and letter of credit agreements. Fair value is a market-based measurement that is determined based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy level assigned to each security in the Company’s available-for-sale portfolio and cash equivalents is based on its assessment of the transparency and reliability of the inputs used in the valuation of such instrument at the measurement date. The fair value of available-for-sale securities and cash equivalents included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. The fair value of available-for-sale securities included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. These values were obtained from an independent pricing service and were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established independent pricing vendors and broker-dealers. The Company's procedures include controls to ensure that appropriate fair values are recorded, such as comparing prices obtained from multiple independent sources. See Note 5 to the consolidated financial statements for further information regarding the fair value of the Company’s senior notes. The Company does not intend to sell the investments that are in an unrealized loss position and it is not likely that the Company will be required to sell any investments before recovery of their amortized cost basis. As such, the Company does not consider those investments with an unrealized loss to be other-than-temporarily impaired at September 30, 2016 or December 31, 2015, respectively. There were no material other-than-temporary impairments or credit losses related to available-for-sale securities in the three and nine months ended September 30, 2016 and 2015 , respectively. In addition, there were no material gross realized gains or losses in the three and nine months ended September 30, 2016 and 2015 , respectively. The estimated fair value of short-term investments by contractual maturity as of September 30, 2016 is as follows: (in thousands) Due within one year $ 80,355 Due after one year and through five years 293,743 Total short-term investments $ 374,098

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2016
Balance Sheet Components Disclosure [Abstract]
Balance Sheet Components	Balance Sheet Components Content Assets Content assets consisted of the following: As of September 30, December 31, (in thousands) Licensed content, net $ 9,248,120 $ 6,827,119 Produced content, net Released, less amortization 194,621 61,515 In production 802,552 279,013 In development 40,154 24,651 1,037,327 365,179 DVD, net 24,626 26,517 Total $ 10,310,073 $ 7,218,815 Current content assets, net $ 3,632,399 $ 2,905,998 Non-current content assets, net $ 6,677,674 $ 4,312,817 Produced content is included in "Non-current content assets, net" on the Consolidated Balance Sheets. Certain original content, such as House of Cards, is licensed and therefore not included in produced content. Of the produced content that has been released, approximately 28% and 82% , is expected to be amortized over the next twelve and thirty-six months, respectively. The amount of accrued participations and residuals to be paid during the next twelve months is not material. Property and Equipment, Net Property and equipment and accumulated depreciation consisted of the following: As of September 30, December 31, Estimated Useful Lives (in thousands) Information technology assets $ 206,957 $ 194,054 3 years Furniture and fixtures 32,255 30,914 3 years Building 40,681 40,681 30 years Leasehold improvements 108,820 107,793 Over life of lease DVD operations equipment 76,248 88,471 5 years Capital work-in-progress 40,997 8,845 Property and equipment, gross 505,958 470,758 Less: Accumulated depreciation (314,082 ) (297,346 ) Property and equipment, net $ 191,876 $ 173,412 The increase in capital work-in-progress is primarily related to leasehold improvements for the Company's expanded headquarters in Los Gatos, California and the Company's new office space in Los Angeles, California.

Long-term Debt

Long-term Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt As of September 30, 2016 , the Company had aggregate outstanding long-term debt of $2,374.0 million , net of $26.0 million of issuance costs, with varying maturities (the "Notes"). Each of the Notes were issued at par and are senior unsecured obligations of the Company. Interest is payable semi-annually at fixed rates. The following table provides a summary of the Company's Notes and the fair values based on quoted market prices in less active markets as of September 30, 2016 and December 31, 2015 : Level 2 Fair Value as of Principal Amount at Par Issuance Date Maturity Interest Due Dates September 30, 2016 December 31, 2015 (in millions) (in millions) 5.50% Senior Notes $ 700.0 February 2015 2022 April 15 and October 15 $ 756.9 $ 717.5 5.875% Senior Notes 800.0 February 2015 2025 April 15 and October 15 866.0 820.0 5.750% Senior Notes 400.0 February 2014 2024 March 1 and September 1 432.0 411.0 5.375% Senior Notes 500.0 February 2013 2021 February 1 and August 1 548.8 525.0 Each of the Notes are repayable in whole or in part upon the occurrence of a change of control, at the option of the holders, at a purchase price in cash equal to 101% of the principal plus accrued interest. The Company may redeem the Notes prior to maturity in whole or in part at an amount equal to the principal amount thereof plus accrued and unpaid interest and an applicable premium. The Notes include, among other terms and conditions, limitations on the Company's ability to create, incur or allow certain liens; enter into sale and lease-back transactions; create, assume, incur or guarantee additional indebtedness of certain of the Company's subsidiaries; and consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's and its subsidiaries assets, to another person. As of September 30, 2016 and December 31, 2015, the Company was in compliance with all related covenants.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Streaming Content As of September 30, 2016 , the Company had $14.4 billion of obligations comprised of $3.5 billion included in "Current content liabilities" and $3.0 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $7.9 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not then meet the criteria for recognition. As of December 31, 2015 , the Company had $10.9 billion of obligations comprised of $2.8 billion included in "Current content liabilities" and $2.0 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $6.1 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not then meet the criteria for recognition. The expected timing of payments for these streaming content obligations is as follows: As of September 30, December 31, (in thousands) Less than one year $ 5,895,205 $ 4,703,172 Due after one year and through three years 6,770,007 5,249,147 Due after three years and through five years 1,489,933 891,864 Due after five years 197,900 58,048 Total streaming content obligations $ 14,353,045 $ 10,902,231 Content obligations include amounts related to the acquisition, licensing and production of content. Obligations that are in non U.S. dollar currencies are translated to the U.S. dollar at period end rates. A content obligation for the production of original content includes non-cancellable commitments under creative talent and employment agreements. A content obligation for the acquisition and licensing of content is incurred at the time the Company enters into an agreement to obtain future titles. Once a title becomes available, a content liability is generally recorded on the Consolidated Balance Sheets. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. Traditional film output deals, like the U.S. output deal with Disney, or certain TV series license agreements where the number of seasons to be aired is unknown, are examples of such license agreements. The Company does not include any estimated obligation for these future titles beyond the known minimum amount. However, the unknown obligations are expected to be significant. Legal Proceedings From time to time, in the normal course of its operations, the Company is subject to litigation matters and claims, including claims relating to employee relations, business practices and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and the Company's view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company's operations or its financial position, liquidity or results of operations. On January 13, 2012, the first of three purported shareholder class action lawsuits was filed in the United States District Court for the Northern District of California against the Company and certain of its officers and directors. Two additional purported shareholder class action lawsuits were filed in the same court on January 27, 2012 and February 29, 2012 alleging substantially similar claims. These lawsuits were consolidated into In re Netflix, Inc., Securities Litigation , Case No. 3:12-cv-00225-SC, and the Court selected lead plaintiffs. On June 26, 2012, lead plaintiffs filed a consolidated complaint which alleged violations of the federal securities laws. The Court dismissed the consolidated complaint with leave to amend on February 13, 2013. Lead plaintiffs filed a first amended consolidated complaint on March 22, 2013. The Court dismissed the first amended consolidated complaint with prejudice on August 20, 2013, and judgment was entered on September 27, 2013. Lead plaintiffs filed a motion to alter or amend the judgment and requested leave to file a second amended complaint on October 25, 2013. On January 17, 2014, the Court denied that motion. On February 18, 2014, lead plaintiffs appealed that decision to the United States Court of Appeals for the Ninth Circuit; oral argument occurred on March 17, 2016. On April 11, 2016, the Ninth Circuit panel affirmed the dismissal of the suit with prejudice. On November 23, 2011, the first of six purported shareholder derivative suits was filed in the Superior Court of California, Santa Clara County, against the Company and certain of its officers and directors. Five additional purported shareholder derivative suits were subsequently filed: two in the Superior Court of California, Santa Clara County on February 9, 2012 and May 2, 2012; and three in the United States District Court for the Northern District of California on February 13, 2012, February 24, 2012 and April 2, 2012. The purported shareholder derivative suits filed in the Northern District of California have been voluntarily dismissed. On July 5, 2012, the purported shareholder derivative suits filed in Santa Clara County were consolidated into In re Netflix, Inc. Shareholder Derivative Litigation , Case No. 1-12-cv-218399, and lead counsel was appointed. A consolidated complaint was filed on December 4, 2012, with plaintiffs seeking compensatory damages and other relief. The consolidated complaint alleges, among other things, that certain of the Company's current and former officers and directors breached their fiduciary duties, issued false and misleading statements primarily regarding the Company's streaming business, violated accounting rules concerning segment reporting, violated provisions of the California Corporations Code, and wasted corporate assets. The consolidated complaint further alleges that the defendants caused the Company to buy back stock at artificially inflated prices to the detriment of the Company and its shareholders while contemporaneously selling personally held Company stock. The Company filed a demurrer to the consolidated complaint and a motion to stay the derivative litigation in favor of the related federal securities class action on February 4, 2013. On June 21, 2013, the Court granted the motion to stay the derivative litigation pending resolution of the related federal securities class action. On August 29, 2016, by stipulation of the parties, the consolidated complaint was dismissed by the Court. The Company is involved in other litigation matters not listed above but does not consider the matters to be material either individually or in the aggregate at this time. The Company's view of the matters not listed may change in the future as the litigation and events related thereto unfold. Indemnification In the ordinary course of business, the Company has entered into contractual arrangements under which it has agreed to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements and out of intellectual property infringement claims made by third parties. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. The Company's obligations under these agreements may be limited in terms of time or amount, and in some instances, the Company may have recourse against third parties for certain payments. In addition, the Company has entered into indemnification agreements with its directors and certain of its officers that will require it, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations vary. It is not possible to make a reasonable estimate of the maximum potential amount of future payments under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. No amount has been accrued in the accompanying consolidated financial statements with respect to these indemnification obligations.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity and Stock-based Compensation Disclosure [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock Split In March 2015, the Company's Board of Directors adopted an amendment to the Company's Certificate of Incorporation, to increase the number of shares of capital stock the Company is authorized to issue from 170,000,000 ( 160,000,000 shares of common stock and 10,000,000 shares of preferred stock), par value $0.001 , to 5,000,000,000 ( 4,990,000,000 shares of common stock and 10,000,000 shares of preferred stock), par value $0.001 . This amendment to the Company's certificate of incorporation was approved by the Company's stockholders at the 2015 Annual Meeting held on June 9, 2015. On June 23, 2015, the Company's Board of Directors declared a seven -for-one stock split in the form of a stock dividend that was paid on July 14, 2015 to all shareholders of record as of July 2, 2015. Stock Option Plan In June 2011, the Company adopted the 2011 Stock Plan. The 2011 Stock Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants. As of September 30, 2016 , 14.1 million shares were reserved for future grants under the 2011 Stock Plan. A summary of the activities related to the Company’s stock option plans is as follows: Options Outstanding Shares Number of Weighted- (per share) Weighted-Average Remaining Aggregate Balances as of December 31, 2015 16,845,316 20,995,756 $ 32.39 Granted (2,721,013 ) 2,721,013 98.45 Exercised — (1,204,583 ) 9.59 Balances as of September 30, 2016 14,124,303 22,512,186 $ 41.59 6.2 $ 1,300,444 Vested and exercisable as of September 30, 2016 22,512,186 $ 41.59 6.2 $ 1,300,444 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the third quarter of 2016 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of the third quarter of 2016 . This amount changes based on the fair market value of the Company’s common stock. A summary of the amounts related to option exercises, is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Total intrinsic value of options exercised $ 35,443 $ 118,259 $ 104,168 $ 313,880 Cash received from options exercised $ 3,819 $ 35,089 $ 11,587 $ 69,809 Stock-based Compensation The following table summarizes the assumptions used to value stock option grants using the lattice-binomial model and the valuation data: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Dividend yield — % — % — % — % Expected volatility 41 % 45 % 41% - 50% 36% - 45% Risk-free interest rate 1.57 % 2.29 % 1.57% - 2.04% 2.03% - 2.29% Suboptimal exercise factor 2.48 2.48 2.48 2.47 - 2.48 Weighted-average fair value (per share) $ 44.68 $ 50.58 $ 47.79 $ 34.64 Total stock-based compensation expense (in thousands) $ 43,495 $ 32,834 $ 130,029 $ 88,865 Total income tax impact on provision (in thousands) $ 16,294 $ 12,365 $ 48,828 $ 33,553 The Company considers several factors in determining the suboptimal exercise factor, including the historical and estimated option exercise behavior. The Company calculates expected volatility based solely on implied volatility. The Company believes that implied volatility of publicly traded options in its common stock is more reflective of market conditions, and given consistently high trade volumes of the options, can reasonably be expected to be a better indicator of expected volatility than historical volatility of its common stock. In valuing shares issued under the Company’s employee stock option plans, the Company bases the risk-free interest rate on U.S. Treasury zero-coupon issues with terms similar to the contractual term of the options. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. The Company does not use a post-vesting termination rate as options are fully vested upon grant date.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The following table summarizes the changes in the accumulated balance of other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2016 : Foreign currency Change in unrealized gains on available-for-sale securities Total (in thousands) Balance as of June 30, 2016 $ (39,406 ) $ 1,195 $ (38,211 ) Other comprehensive income (loss) before reclassifications 2,357 (676 ) 1,681 Net decrease (increase) in other comprehensive loss 2,357 (676 ) 1,681 Balance as of September 30, 2016 $ (37,049 ) $ 519 $ (36,530 ) Foreign currency Change in unrealized gains on available-for-sale securities Total (in thousands) Balance as of December 31, 2015 $ (42,502 ) $ (806 ) $ (43,308 ) Other comprehensive income before reclassifications 5,453 1,325 6,778 Net decrease in other comprehensive loss 5,453 1,325 6,778 Balance as of September 30, 2016 $ (37,049 ) $ 519 $ (36,530 ) The amounts reclassified from accumulated other comprehensive loss were immaterial for the three and nine months ended September 30, 2016 .

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The effective tax rates for the three months ended September 30, 2016 and 2015 were 35% and 30% , respectively. The effective tax rates for the nine months ended September 30, 2016 and 2015 were 30% and 34% , respectively. The effective tax rate for the nine months ended September 30, 2016 differed from the Federal statutory rate primarily due to Federal and California research and development ("R&D") credits partially offset by state taxes, foreign taxes and non-deductible expenses. The effective tax rate for the three and nine months ended September 30, 2015 differed from the Federal statutory rate primarily due to the California R&D credit partially offset by state taxes, foreign taxes and non-deductible expenses. The increase in effective tax rate for the three months ended September 30, 2016 as compared to the same period in 2015 was due primarily to increased operating results for the three months ended September 30, 2016. The decrease in effective tax rate for the nine months ended September 30, 2016 as compared to the nine months ended September 30, 2015 was primarily attributable to the permanent reinstatement of the Federal R&D credit in the fourth quarter of 2015. Gross unrecognized tax benefits were $16.5 million and $17.1 million as of September 30, 2016 and December 31, 2015, respectively. The gross unrecognized tax benefits, if recognized by the Company, will result in a reduction of approximately $13.7 million to the provision for income taxes thereby favorably impacting the Company’s effective tax rate. As of September 30, 2016 , the Company had identified gross unrecognized tax benefits of $16.5 million , of which $1.6 million was classified as “Other non-current liabilities” and $14.9 million as a reduction to deferred tax assets which was classified as "Other non-current assets" in the Consolidated Balance Sheets. The Company includes interest and penalties related to unrecognized tax benefits within the "Provision for income taxes" on the Consolidated Statements of Operations and “Other non-current liabilities” in the Consolidated Balance Sheets. Interest and penalties included in the Company’s “Provision for income taxes” were not material in any of the periods presented. Deferred tax assets include $200.0 million and $180.6 million classified as “Other non-current assets” on the Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015 , respectively. In evaluating its ability to realize the net deferred tax assets, the Company considered all available positive and negative evidence, including its past operating results and the forecast of future market growth, forecasted earnings, future taxable income, and prudent and feasible tax planning strategies. As of September 30, 2016 and December 31, 2015 , it was considered more likely than not that all deferred tax assets would be realized. Income tax benefits attributable to the exercise of employee stock options are recorded in additional paid-in-capital. These benefits amounted to $12.6 million and $37.7 million , during the three months ended September 30, 2016 and 2015, respectively, and amounted to $37.2 million and $105.6 million , during the nine months ended September 30, 2016 and 2015, respectively. The Company files U.S. Federal, state and foreign tax returns. The Company is currently under examination by the IRS for 2014 and 2015. The 2008 through 2015 state tax returns are subject to examination by state tax authorities. The Company has no significant foreign jurisdiction audits underway, and 2011 through 2015 remain subject to examination by foreign tax authorities. Given the potential outcome of the current examinations as well as the impact of the current examinations on the potential expiration of the statute of limitations, it is reasonably possible that the balance of unrecognized tax benefits could significantly change within the next twelve months. At this time, an estimate of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be made.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Information	Segment Information The Company has three reportable segments: Domestic streaming, International streaming and Domestic DVD. Segment information is presented in the same manner that the Company’s chief operating decision maker ("CODM") reviews the operating results in assessing performance and allocating resources. The Company’s CODM reviews revenues and contribution profit (loss) for each of the reportable segments. Contribution profit (loss) is defined as revenues less cost of revenues and marketing expenses incurred by the segment. The Company has aggregated the results of the International operating segments into one reportable segment because these operating segments share similar long-term economic and other qualitative characteristics. The Domestic streaming segment derives revenues from monthly membership fees for services consisting solely of streaming content to members in the United States. The International streaming segment derives revenues from monthly membership fees for services consisting solely of streaming content to members outside the United States. The Domestic DVD segment derives revenues from monthly membership fees for services consisting solely of DVD-by-mail. Revenues and the related payment card fees are attributed to the operating segment based on the nature of the underlying membership (streaming or DVD) and the geographic region from which the membership originates. There are no internal revenue transactions between the Company’s segments. The vast majority of the cost of revenues relate to content expenses, which include the amortization of streaming content assets and other costs associated with the licensing and acquisition of streaming content. In connection with the Company's global expansion, content acquired, licensed, and produced increasingly includes global rights. The Company allocates this content between the International and Domestic streaming segments based on estimated fair market value. Content expenses for each streaming segment thus include both expenses directly incurred by the segment as well as an allocation of expenses incurred for global rights. Other costs of revenues such as delivery costs are primarily attributed to the operating segment based on amounts directly incurred by the segment. Marketing expenses consist primarily of advertising expenses and payments made to device partners which are generally included in the segment in which the expenditures are directly incurred. The Company's long-lived tangible assets were located as follows: As of September 30, December 31, 2015 (in thousands) United States $ 176,271 $ 159,566 International 15,605 13,846 The following table represents segment information for the three and nine months ended September 30, 2016 : As of/ Three Months Ended September 30, 2016 Domestic International Domestic Consolidated (in thousands) Total memberships at end of period (1) 47,497 39,246 4,273 — Revenues $ 1,304,333 $ 853,480 $ 132,375 $ 2,290,188 Cost of revenues 720,658 748,515 63,671 1,532,844 Marketing 108,495 173,548 — 282,043 Contribution profit (loss) $ 475,180 $ (68,583 ) $ 68,704 $ 475,301 Other operating expenses 369,265 Operating income 106,036 Other income (expense) (26,909 ) Provision for income taxes 27,610 Net income $ 51,517 As of/ Nine Months Ended September 30, 2016 Domestic International Domestic Consolidated (in thousands) Total memberships at end of period (1) 47,497 39,246 4,273 — Revenues $ 3,673,845 $ 2,263,429 $ 415,854 $ 6,353,128 Cost of revenues 2,094,310 2,076,576 204,596 4,375,482 Marketing 277,243 428,839 — 706,082 Contribution profit (loss) $ 1,302,292 $ (241,986 ) $ 211,258 $ 1,271,564 Other operating expenses 1,045,705 Operating income 225,859 Other income (expense) (55,621 ) Provision for income taxes 50,308 Net income $ 119,930 The following table represents segment information for the three and nine months ended September 30, 2015 : As of/ Three Months Ended September 30, 2015 Domestic International Domestic Consolidated (in thousands) Total memberships at end of period (1) 43,181 25,987 5,060 — Revenues $ 1,063,961 $ 516,870 $ 157,524 $ 1,738,355 Cost of revenues 644,914 451,251 77,793 1,173,958 Marketing 74,835 133,267 — 208,102 Contribution profit (loss) $ 344,212 $ (67,648 ) $ 79,731 $ 356,295 Other operating expenses 282,654 Operating income 73,641 Other income (expense) (31,403 ) Provision for income taxes 12,806 Net income $ 29,432 As of/ Nine Months Ended September 30, 2015 Domestic International Domestic Consolidated (in thousands) Total memberships at end of period (1) 43,181 25,987 5,060 — Revenues $ 3,074,406 $ 1,387,030 $ 494,742 $ 4,956,178 Cost of revenues 1,840,134 1,249,495 252,482 3,342,111 Marketing 237,813 362,106 — 599,919 Contribution profit (loss) $ 996,459 $ (224,571 ) $ 242,260 $ 1,014,148 Other operating expenses 768,216 Operating income 245,932 Other income (expense) (124,778 ) Provision for income taxes 41,691 Net income $ 79,463 The following table represents the amortization of content assets: Domestic Streaming International Streaming Domestic DVD Consolidated (in thousands) Three months ended September 30, 2016 $ 597,039 $ 627,069 $ 19,284 $ 1,243,392 2015 493,025 378,378 18,589 889,992 Nine months ended September 30, 2016 1,709,168 1,748,822 59,746 3,517,736 2015 1,387,242 1,056,279 60,587 2,504,108 (1) A membership (also referred to as a subscription or a member) is defined as the right to receive 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 the Company's internal systems, which utilize industry standard geo-location technology. The Company offers 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 the Company's banks or integrated payment partners. The number of members in a grace period at any given point is not material.

Basis of Presentation and Sum18

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the streaming content asset amortization policy; the recognition and measurement of income tax assets and liabilities; and the valuation of stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On a regular basis, the Company evaluates the assumptions, judgments and estimates. Actual results may differ from these estimates.
New Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The Company will adopt ASU 2014-09 in the first quarter of 2018 and apply the full retrospective approach. The Company does not expect the impact on its consolidated financial statements to be material. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company will adopt ASU 2016-02 in the first quarter of 2019 and is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends Accounting Standards Codification ("ASC") Topic 718, Compensation – Stock Compensation . ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. The Company will adopt ASU 2016-09 in the first quarter of 2017 and is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Computation of Earnings Per Share	The computation of earnings per share is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands, except per share data) Basic earnings per share: Net income $ 51,517 $ 29,432 $ 119,930 $ 79,463 Shares used in computation: Weighted-average common shares outstanding 428,937 426,869 428,514 425,289 Basic earnings per share $ 0.12 $ 0.07 $ 0.28 $ 0.19 Diluted earnings per share: Net income $ 51,517 $ 29,432 $ 119,930 $ 79,463 Shares used in computation: Weighted-average common shares outstanding 428,937 426,869 428,514 425,289 Employee stock options 9,452 10,737 9,666 10,560 Weighted-average number of shares 438,389 437,606 438,180 435,849 Diluted earnings per share $ 0.12 $ 0.07 $ 0.27 $ 0.18
Summary of Potential Common Shares Excluded from Diluted Calculation	The following table summarizes the potential common shares excluded from the diluted calculation: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Employee stock options 2,559 130 1,942 668

Short-term Investments (Tables)

Short-term Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Short-Term Investments And Fair Value Measurement [Abstract]
Available-For-Sale Securities Reported at Fair Value	The following tables summarize, by major security type, the Company’s assets that are measured at fair value on a recurring basis, the category using the fair value hierarchy and where they are classified on the Consolidated Balance Sheets: As of September 30, 2016 Amortized Gross Gross Estimated Cash and cash equivalents Short-term investments Non-current assets (1) (in thousands) Cash $ 920,513 $ — $ — $ 920,513 $ 917,936 $ — $ 2,577 Level 1 securities: Money market funds 52,737 — — 52,737 51,222 — 1,515 Level 2 securities: Corporate debt securities 220,826 770 (68 ) 221,528 — 221,528 — Government securities 110,860 159 — 111,019 — 111,019 — Certificates of deposit/commercial paper 9,817 — — 9,817 9,817 Agency securities 31,770 4 (40 ) 31,734 — 31,734 — Total $ 1,346,523 $ 933 $ (108 ) $ 1,347,348 $ 969,158 $ 374,098 $ 4,092 As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents Short-term investments Non-current assets (1) (in thousands) Cash $ 1,708,220 $ — $ — $ 1,708,220 $ 1,706,592 $ — $ 1,628 Level 1 securities: Money market funds 107,199 — — 107,199 102,738 — 4,461 Level 2 securities: Corporate debt securities 240,867 154 (409 ) 240,612 — 240,612 — Government securities 235,252 — (1,046 ) 234,206 — 234,206 — Agency securities 26,576 — (9 ) 26,567 — 26,567 — Total $ 2,318,114 $ 154 $ (1,464 ) $ 2,316,804 $ 1,809,330 $ 501,385 $ 6,089 (1) Primarily restricted cash that is related to workers compensation deposits and letter of credit agreements.
Estimated Fair Value of Short-Term Investments by Contractual Maturity	The estimated fair value of short-term investments by contractual maturity as of September 30, 2016 is as follows: (in thousands) Due within one year $ 80,355 Due after one year and through five years 293,743 Total short-term investments $ 374,098

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2016
Balance Sheet Components Disclosure [Abstract]
Content Assets	Content assets consisted of the following: As of September 30, December 31, (in thousands) Licensed content, net $ 9,248,120 $ 6,827,119 Produced content, net Released, less amortization 194,621 61,515 In production 802,552 279,013 In development 40,154 24,651 1,037,327 365,179 DVD, net 24,626 26,517 Total $ 10,310,073 $ 7,218,815 Current content assets, net $ 3,632,399 $ 2,905,998 Non-current content assets, net $ 6,677,674 $ 4,312,817
Property and Equipment, Net	Property and equipment and accumulated depreciation consisted of the following: As of September 30, December 31, Estimated Useful Lives (in thousands) Information technology assets $ 206,957 $ 194,054 3 years Furniture and fixtures 32,255 30,914 3 years Building 40,681 40,681 30 years Leasehold improvements 108,820 107,793 Over life of lease DVD operations equipment 76,248 88,471 5 years Capital work-in-progress 40,997 8,845 Property and equipment, gross 505,958 470,758 Less: Accumulated depreciation (314,082 ) (297,346 ) Property and equipment, net $ 191,876 $ 173,412

Long-term Debt (Tables)

Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Summary of Long-term Debt	The following table provides a summary of the Company's Notes and the fair values based on quoted market prices in less active markets as of September 30, 2016 and December 31, 2015 : Level 2 Fair Value as of Principal Amount at Par Issuance Date Maturity Interest Due Dates September 30, 2016 December 31, 2015 (in millions) (in millions) 5.50% Senior Notes $ 700.0 February 2015 2022 April 15 and October 15 $ 756.9 $ 717.5 5.875% Senior Notes 800.0 February 2015 2025 April 15 and October 15 866.0 820.0 5.750% Senior Notes 400.0 February 2014 2024 March 1 and September 1 432.0 411.0 5.375% Senior Notes 500.0 February 2013 2021 February 1 and August 1 548.8 525.0

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Expected Timing of Payments for Commitments	The expected timing of payments for these streaming content obligations is as follows: As of September 30, December 31, (in thousands) Less than one year $ 5,895,205 $ 4,703,172 Due after one year and through three years 6,770,007 5,249,147 Due after three years and through five years 1,489,933 891,864 Due after five years 197,900 58,048 Total streaming content obligations $ 14,353,045 $ 10,902,231

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity and Stock-based Compensation Disclosure [Abstract]
Summary of Activity Related to Stock Option Plans	A summary of the activities related to the Company’s stock option plans is as follows: Options Outstanding Shares Number of Weighted- (per share) Weighted-Average Remaining Aggregate Balances as of December 31, 2015 16,845,316 20,995,756 $ 32.39 Granted (2,721,013 ) 2,721,013 98.45 Exercised — (1,204,583 ) 9.59 Balances as of September 30, 2016 14,124,303 22,512,186 $ 41.59 6.2 $ 1,300,444 Vested and exercisable as of September 30, 2016 22,512,186 $ 41.59 6.2 $ 1,300,444
Summary of Amounts Related to Option Exercises	A summary of the amounts related to option exercises, is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Total intrinsic value of options exercised $ 35,443 $ 118,259 $ 104,168 $ 313,880 Cash received from options exercised $ 3,819 $ 35,089 $ 11,587 $ 69,809
Summary of Assumptions Used to Value Stock Option Grants Using Lattice-Binomial Model	The following table summarizes the assumptions used to value stock option grants using the lattice-binomial model and the valuation data: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Dividend yield — % — % — % — % Expected volatility 41 % 45 % 41% - 50% 36% - 45% Risk-free interest rate 1.57 % 2.29 % 1.57% - 2.04% 2.03% - 2.29% Suboptimal exercise factor 2.48 2.48 2.48 2.47 - 2.48 Weighted-average fair value (per share) $ 44.68 $ 50.58 $ 47.79 $ 34.64 Total stock-based compensation expense (in thousands) $ 43,495 $ 32,834 $ 130,029 $ 88,865 Total income tax impact on provision (in thousands) $ 16,294 $ 12,365 $ 48,828 $ 33,553

Accumulated Other Comprehensi25

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Changes in Accumulated Other Comprehensive Income	The following table summarizes the changes in the accumulated balance of other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2016 : Foreign currency Change in unrealized gains on available-for-sale securities Total (in thousands) Balance as of June 30, 2016 $ (39,406 ) $ 1,195 $ (38,211 ) Other comprehensive income (loss) before reclassifications 2,357 (676 ) 1,681 Net decrease (increase) in other comprehensive loss 2,357 (676 ) 1,681 Balance as of September 30, 2016 $ (37,049 ) $ 519 $ (36,530 ) Foreign currency Change in unrealized gains on available-for-sale securities Total (in thousands) Balance as of December 31, 2015 $ (42,502 ) $ (806 ) $ (43,308 ) Other comprehensive income before reclassifications 5,453 1,325 6,778 Net decrease in other comprehensive loss 5,453 1,325 6,778 Balance as of September 30, 2016 $ (37,049 ) $ 519 $ (36,530 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Long-lived Assets by Geographic Areas	The Company's long-lived tangible assets were located as follows: As of September 30, December 31, 2015 (in thousands) United States $ 176,271 $ 159,566 International 15,605 13,846
Information on Reportable Segments And Reconciliation To Consolidated Net Income	The following table represents segment information for the three and nine months ended September 30, 2016 : As of/ Three Months Ended September 30, 2016 Domestic International Domestic Consolidated (in thousands) Total memberships at end of period (1) 47,497 39,246 4,273 — Revenues $ 1,304,333 $ 853,480 $ 132,375 $ 2,290,188 Cost of revenues 720,658 748,515 63,671 1,532,844 Marketing 108,495 173,548 — 282,043 Contribution profit (loss) $ 475,180 $ (68,583 ) $ 68,704 $ 475,301 Other operating expenses 369,265 Operating income 106,036 Other income (expense) (26,909 ) Provision for income taxes 27,610 Net income $ 51,517 As of/ Nine Months Ended September 30, 2016 Domestic International Domestic Consolidated (in thousands) Total memberships at end of period (1) 47,497 39,246 4,273 — Revenues $ 3,673,845 $ 2,263,429 $ 415,854 $ 6,353,128 Cost of revenues 2,094,310 2,076,576 204,596 4,375,482 Marketing 277,243 428,839 — 706,082 Contribution profit (loss) $ 1,302,292 $ (241,986 ) $ 211,258 $ 1,271,564 Other operating expenses 1,045,705 Operating income 225,859 Other income (expense) (55,621 ) Provision for income taxes 50,308 Net income $ 119,930 The following table represents segment information for the three and nine months ended September 30, 2015 : As of/ Three Months Ended September 30, 2015 Domestic International Domestic Consolidated (in thousands) Total memberships at end of period (1) 43,181 25,987 5,060 — Revenues $ 1,063,961 $ 516,870 $ 157,524 $ 1,738,355 Cost of revenues 644,914 451,251 77,793 1,173,958 Marketing 74,835 133,267 — 208,102 Contribution profit (loss) $ 344,212 $ (67,648 ) $ 79,731 $ 356,295 Other operating expenses 282,654 Operating income 73,641 Other income (expense) (31,403 ) Provision for income taxes 12,806 Net income $ 29,432 As of/ Nine Months Ended September 30, 2015 Domestic International Domestic Consolidated (in thousands) Total memberships at end of period (1) 43,181 25,987 5,060 — Revenues $ 3,074,406 $ 1,387,030 $ 494,742 $ 4,956,178 Cost of revenues 1,840,134 1,249,495 252,482 3,342,111 Marketing 237,813 362,106 — 599,919 Contribution profit (loss) $ 996,459 $ (224,571 ) $ 242,260 $ 1,014,148 Other operating expenses 768,216 Operating income 245,932 Other income (expense) (124,778 ) Provision for income taxes 41,691 Net income $ 79,463 The following table represents the amortization of content assets: Domestic Streaming International Streaming Domestic DVD Consolidated (in thousands) Three months ended September 30, 2016 $ 597,039 $ 627,069 $ 19,284 $ 1,243,392 2015 493,025 378,378 18,589 889,992 Nine months ended September 30, 2016 1,709,168 1,748,822 59,746 3,517,736 2015 1,387,242 1,056,279 60,587 2,504,108 (1) A membership (also referred to as a subscription or a member) is defined as the right to receive 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 the Company's internal systems, which utilize industry standard geo-location technology. The Company offers 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 the Company's banks or integrated payment partners. The number of members in a grace period at any given point is not material.

Basis of Presentation and Sum27

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)segment	Sep. 30, 2015USD ($)
Change in Accounting Estimate [Line Items]
Number of reportable segments | segment			3
Additions to streaming content assets	$ 2,442,080	$ 1,304,466	$ 6,550,445	$ 4,221,326
Reclassification adjustment to other current assets	$ (10,250)	(66,695)	$ (48,649)	(81,448)
Restatement Adjustment
Change in Accounting Estimate [Line Items]
Additions to streaming content assets		(4,500)		26,800
Reclassification adjustment to other current assets		$ (4,500)		$ 26,800

Earnings Per Share - Computatio

Earnings Per Share - Computation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic earnings per share:
Net income	$ 51,517	$ 29,432	$ 119,930	$ 79,463
Weighted-average common shares outstanding (in shares)	428,937	426,869	428,514	425,289
Basic earnings per share (in dollars per share)	$ 0.12	$ 0.07	$ 0.28	$ 0.19
Diluted earnings per share:
Net income	$ 51,517	$ 29,432	$ 119,930	$ 79,463
Shares used in computation:
Weighted-average common shares outstanding (in shares)	428,937	426,869	428,514	425,289
Employee stock options (in shares)	9,452	10,737	9,666	10,560
Weighted-average number of shares (in shares)	438,389	437,606	438,180	435,849
Diluted earnings per share (in dollars per share)	$ 0.12	$ 0.07	$ 0.27	$ 0.18

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Employee stock options (in shares)	2,559	130	1,942	668

Short-term Investments - Availa

Short-term Investments - Available-For-Sale Securities Reported At Fair Value (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Level 2 securities, Gross Unrealized Gains		$ 933	$ 154
Level 2 securities, Gross Unrealized Losses		(108)	(1,464)
Total, amortized cost		1,346,523	2,318,114
Total, estimated fair value		1,347,348	2,316,804
Level 1 Securities | Money market funds
Schedule of Available-for-sale Securities [Line Items]
Cash and money market funds, Amortized Cost		52,737	107,199
Cash and money market funds, Estimated Fair Value		52,737	107,199
Level 2 Securities | Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Level 2 securities, Amortized Cost		220,826	240,867
Level 2 securities, Gross Unrealized Gains		770	154
Level 2 securities, Gross Unrealized Losses		(68)	(409)
Level 2 securities, Estimated Fair Value		221,528	240,612
Level 2 Securities | Government securities
Schedule of Available-for-sale Securities [Line Items]
Level 2 securities, Amortized Cost		110,860	235,252
Level 2 securities, Gross Unrealized Gains		159	0
Level 2 securities, Gross Unrealized Losses		0	(1,046)
Level 2 securities, Estimated Fair Value		111,019	234,206
Level 2 Securities | Certificates of deposit/commercial
Schedule of Available-for-sale Securities [Line Items]
Level 2 securities, Amortized Cost		9,817
Level 2 securities, Estimated Fair Value		9,817
Level 2 Securities | Agency securities
Schedule of Available-for-sale Securities [Line Items]
Level 2 securities, Amortized Cost		31,770	26,576
Level 2 securities, Gross Unrealized Gains		4	0
Level 2 securities, Gross Unrealized Losses		(40)	(9)
Level 2 securities, Estimated Fair Value		31,734	26,567
Cash
Schedule of Available-for-sale Securities [Line Items]
Cash and money market funds, Amortized Cost		920,513	1,708,220
Cash and money market funds, Estimated Fair Value		920,513	1,708,220
Fair Value, Measurements, Recurring | Level 1 Securities
Schedule of Available-for-sale Securities [Line Items]
Cash, Cash Equivalents and Restricted Cash, Noncurrent Assets	[1]	1,515	4,461
Fair Value, Measurements, Recurring | Level 1 Securities | Money market funds
Schedule of Available-for-sale Securities [Line Items]
Cash and money market funds, Estimated Fair Value		51,222	102,738
Fair Value, Measurements, Recurring | Level 2 Securities | Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Level 2 securities, Estimated Fair Value		221,528	240,612
Fair Value, Measurements, Recurring | Level 2 Securities | Government securities
Schedule of Available-for-sale Securities [Line Items]
Level 2 securities, Estimated Fair Value		111,019	234,206
Fair Value, Measurements, Recurring | Level 2 Securities | Agency securities
Schedule of Available-for-sale Securities [Line Items]
Level 2 securities, Estimated Fair Value		31,734	26,567
Fair Value, Measurements, Recurring | Cash
Schedule of Available-for-sale Securities [Line Items]
Cash and money market funds, Estimated Fair Value		917,936	1,706,592
Cash, Cash Equivalents and Restricted Cash, Noncurrent Assets	[1]	2,577	1,628
Cash and Cash Equivalents | Fair Value, Measurements, Recurring
Schedule of Available-for-sale Securities [Line Items]
Total, estimated fair value		969,158	1,809,330
Short-term Investments | Fair Value, Measurements, Recurring
Schedule of Available-for-sale Securities [Line Items]
Total, estimated fair value		374,098	501,385
Non-current Assets | Fair Value, Measurements, Recurring
Schedule of Available-for-sale Securities [Line Items]
Total, estimated fair value	[1]	$ 4,092	$ 6,089
[1]	Primarily restricted cash that is related to workers compensation deposits and letter of credit agreements.

Short-term Investments - Estima

Short-term Investments - Estimated Fair Value Of Short-Term Investments By Contractual Maturity (Details) $ in Thousands	Sep. 30, 2016USD ($)
Short-Term Investments And Fair Value Measurement [Abstract]
Due within one year	$ 80,355
Due after one year and through five years	293,743
Total short-term investments	$ 374,098

Balance Sheet Components - Comp

Balance Sheet Components - Components of Content Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Content assets, net	$ 10,310,073	$ 7,218,815
Current content assets, net	3,632,399	2,905,998
Non-current content assets, net	6,677,674	4,312,817
Licensed content
Finite-Lived Intangible Assets [Line Items]
Net content	9,248,120	6,827,119
Produced content
Finite-Lived Intangible Assets [Line Items]
Net content	194,621	61,515
In production	802,552	279,013
In development	40,154	24,651
Content assets, net	$ 1,037,327	365,179
Produced content amortization percentage over one year	28.00%
Produced content amortization percent over three years	82.00%
DVD
Finite-Lived Intangible Assets [Line Items]
Content assets, net	$ 24,626	$ 26,517

Balance Sheet Components - Prop

Balance Sheet Components - Property And Equipment And Accumulated Depreciation (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 505,958	$ 470,758
Less: Accumulated depreciation	(314,082)	(297,346)
Property and equipment, net	191,876	173,412
Information technology assets
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 206,957	194,054
Estimated Useful Lives	3 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 32,255	30,914
Estimated Useful Lives	3 years
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 40,681	40,681
Estimated Useful Lives	30 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 108,820	107,793
DVD operations equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 76,248	88,471
Estimated Useful Lives	5 years
Capital work-in-progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 40,997	$ 8,845

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Aggregate outstanding principal	$ 2,373,966	$ 2,371,362
Debt issuance cost	$ 26,000
Senior Notes
Debt Instrument [Line Items]
Redemption prices, percent of outstanding principal	101.00%

Long-term Debt - Summary of Lon

Long-term Debt - Summary of Long-term Debt (Details) - Senior Notes - USD ($)	Sep. 30, 2016	Dec. 31, 2015
5.50% Senior Notes
Debt Instrument [Line Items]
Principal amount at par	$ 700,000,000
Fair value	$ 756,900,000	$ 717,500,000
Interest rate	5.50%
5.875% Senior Notes
Debt Instrument [Line Items]
Principal amount at par	$ 800,000,000
Fair value	$ 866,000,000	820,000,000
Interest rate	5.875%
5.750% Senior Notes
Debt Instrument [Line Items]
Principal amount at par	$ 400,000,000
Fair value	$ 432,000,000	411,000,000
Interest rate	5.75%
5.375% Senior Notes
Debt Instrument [Line Items]
Principal amount at par	$ 500,000,000
Fair value	$ 548,800,000	$ 525,000,000
Interest rate	5.375%

Commitments and Contingencies -

Commitments and Contingencies - Streaming Content - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Contractual Obligation [Line Items]
Streaming obligations included in current content liabilities	$ 14,353,045	$ 10,902,231
Streaming obligations not reflected on Consolidated Balance Sheets	7,900,000	6,100,000
Current Content Liabilities
Contractual Obligation [Line Items]
Streaming obligations included in non-current content liabilities	3,500,000	2,800,000
Non-current Content Liabilities
Contractual Obligation [Line Items]
Streaming obligations included in non-current content liabilities	$ 3,000,000	$ 2,000,000

Commitments and Contingencies37

Commitments and Contingencies - Expected Timing of Payments for Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Less than one year	$ 5,895,205	$ 4,703,172
Due after one year and through three years	6,770,007	5,249,147
Due after three years and through five years	1,489,933	891,864
Due after five years	197,900	58,048
Total streaming content obligations	$ 14,353,045	$ 10,902,231

Commitments and Contingencies38

Commitments and Contingencies - Legal Proceedings - Narrative (Details)	Sep. 30, 2016USD ($)	May 02, 2012lawsuit_filed	Apr. 02, 2012lawsuit_filed	Feb. 29, 2012lawsuit_filed	Feb. 24, 2012lawsuit_filed	Feb. 13, 2012lawsuit_filed	Feb. 09, 2012lawsuit_filed	Jan. 27, 2012lawsuit_filed	Jan. 13, 2012lawsuit_filed	Nov. 23, 2011lawsuit_filed
Loss Contingencies [Line Items]
Commitments and contingencies | $	$ 0
United States District Court for the Northern District of California | Pending Litigation
Loss Contingencies [Line Items]
Shareholder suits			1	1	1	1		1	1
Superior Court of California, Santa Clara County | Pending Litigation
Loss Contingencies [Line Items]
Shareholder suits		1					1			1

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details)	Jun. 23, 2015	Sep. 30, 2016$ / sharesshares	Mar. 31, 2016$ / shares	Dec. 31, 2015$ / sharesshares	Mar. 31, 2015$ / sharesshares	Feb. 28, 2015$ / sharesshares
Components of Stockholders' Equity [Line Items]
Number of shares of capital stock authorized					5,000,000,000	170,000,000
Number of common shares authorized		4,990,000,000		4,990,000,000	4,990,000,000	160,000,000
Number of preferred shares authorized					10,000,000	10,000,000
Common stock, par value (dollars per share) | $ / shares		$ 0.001		$ 0.001	$ 0.001	$ 0.001
Preferred stock, par value (dollars per share) | $ / shares			$ 0.001			$ 0.001
Stock split declared	7
2011 Stock Plan
Components of Stockholders' Equity [Line Items]
Shares reserved for future issuance		14,100,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Activity Related to Stock Option Plans (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Shares available for grant, beginning balance	16,845,316
Options outstanding, number of shares, beginning balance	20,995,756
Shares available for grant, granted	(2,721,013)
Options outstanding, number of shares, exercised	(1,204,583)
Options outstanding, number of shares, ending balance	22,512,186
Shares available for grant, ending balance	14,124,303
Options vested and exercisable, number of shares, ending balance	22,512,186
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Options outstanding, weighted-average exercise price, beginning balance (dollars per share) | $ / shares	$ 32.39
Options outstanding, weighted-average exercise price, granted (dollars per share) | $ / shares	98.45
Options outstanding, weighted-average exercise price, exercised (dollars per share) | $ / shares	9.59
Options outstanding, weighted-average exercise price, ending balance (dollars per share) | $ / shares	41.59
Options outstanding, weighted-average exercise price, vested and exercisable (dollars per share) | $ / shares	$ 41.59
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted-average remaining contractual term, ending balance (in years)	6 years 2 months 12 days
Weighted-average remaining contractual term, vested and exercisable (in years)	6 years 2 months 12 days
Aggregate intrinsic value, ending balance | $	$ 1,300,444
Aggregate intrinsic value, vested and exercisable | $	$ 1,300,444

Stockholders' Equity - Summar41

Stockholders' Equity - Summary of Amounts Related to Option Exercises (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Equity [Abstract]
Total intrinsic value of options exercised	$ 35,443	$ 118,259	$ 104,168	$ 313,880
Cash received from options exercised	$ 3,819	$ 35,089	$ 11,587	$ 69,809

Stockholders' Equity - Summar42

Stockholders' Equity - Summary of Assumptions Used to Value Stock Option Grants Using Lattice-Binomial Model (Details) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)$ / shares	Sep. 30, 2015USD ($)$ / shares	Sep. 30, 2016USD ($)$ / shares	Sep. 30, 2015USD ($)$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected volatility	41.00%	45.00%
Risk-free interest rate	1.57%	2.29%
Suboptimal exercise factor	2.48	2.48	2.48
Weighted-average fair value (in dollars per share) | $ / shares	$ 44.68	$ 50.58	$ 47.79	$ 34.64
Stock-based compensation expense	$ 43,495	$ 32,834	$ 130,029	$ 88,865
Total income tax impact on provision (in thousands)	$ 16,294	$ 12,365	$ 48,828	$ 33,553
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			41.00%	36.00%
Risk-free interest rate			1.57%	2.03%
Suboptimal exercise factor				2.47
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			50.00%	45.00%
Risk-free interest rate			2.04%	2.29%
Suboptimal exercise factor				2.48

Accumulated Other Comprehensi43

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ (38,211)	$ (43,308)
Other comprehensive income (loss) before reclassifications	1,681	6,778
Net decrease (increase) in other comprehensive loss	1,681	6,778
Ending balance	(36,530)	(36,530)
Foreign currency
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(39,406)	(42,502)
Other comprehensive income (loss) before reclassifications	2,357	5,453
Net decrease (increase) in other comprehensive loss	2,357	5,453
Ending balance	(37,049)	(37,049)
Change in unrealized gains on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	1,195	(806)
Other comprehensive income (loss) before reclassifications	(676)	1,325
Net decrease (increase) in other comprehensive loss	(676)	1,325
Ending balance	$ 519	$ 519

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Effective tax rates	35.00%	30.00%	30.00%	34.00%
Income Tax Contingency [Line Items]
Unrecognized tax benefits	$ 16.5		$ 16.5		$ 17.1
Reduction in provision for income taxes due to impact of effective tax rate	13.7		13.7
Deferred tax assets classified as other non-current assets	200		200		$ 180.6
Income tax benefits attributable to the exercise of employee stock options recorded directly to Additional paid-in-capital	12.6	$ 37.7	37.2	$ 105.6
Other Noncurrent Liabilities
Income Tax Contingency [Line Items]
Increase in unrecognized tax benefits is reasonably possible	1.6		1.6
Other Noncurrent Assets
Income Tax Contingency [Line Items]
Deferred tax assets	$ 14.9		$ 14.9

Segment Information - Narrativ

Segment Information - Narrative (Details)	9 Months Ended
	Sep. 30, 2016segment
Segment Reporting Information [Line Items]
Number of reportable segments	3
International Streaming
Segment Reporting Information [Line Items]
Number of reportable segments	1

Segment Information - Long-liv

Segment Information - Long-lived Assets by Geographical Areas (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	$ 176,271	$ 159,566
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	$ 15,605	$ 13,846

Segment Information - Informat

Segment Information - Information On Reportable Segments And Reconciliation To Consolidated Net Income (Details) subscription in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016USD ($)subscription	Sep. 30, 2015USD ($)subscription	Sep. 30, 2016USD ($)subscription	Sep. 30, 2015USD ($)subscription
Segment Reporting Information [Line Items]
Total memberships at end of period | subscription	[1]	0	0	0	0
Revenues		$ 2,290,188	$ 1,738,355	$ 6,353,128	$ 4,956,178
Cost of revenues		1,532,844	1,173,958	4,375,482	3,342,111
Marketing		282,043	208,102	706,082	599,919
Contribution profit (loss)		475,301	356,295	1,271,564	1,014,148
Other operating expenses		369,265	282,654	1,045,705	768,216
Operating income		106,036	73,641	225,859	245,932
Other income (expense)		(26,909)	(31,403)	(55,621)	(124,778)
Provision for income taxes		27,610	12,806	50,308	41,691
Net income		51,517	29,432	119,930	79,463
Amortization of content assets		$ 1,243,392	$ 889,992	$ 3,517,736	$ 2,504,108
Domestic Streaming
Segment Reporting Information [Line Items]
Total memberships at end of period | subscription	[1]	47,497	43,181	47,497	43,181
Revenues		$ 1,304,333	$ 1,063,961	$ 3,673,845	$ 3,074,406
Cost of revenues		720,658	644,914	2,094,310	1,840,134
Marketing		108,495	74,835	277,243	237,813
Contribution profit (loss)		475,180	344,212	1,302,292	996,459
Amortization of content assets		$ 597,039	$ 493,025	$ 1,709,168	$ 1,387,242
International Streaming
Segment Reporting Information [Line Items]
Total memberships at end of period | subscription	[1]	39,246	25,987	39,246	25,987
Revenues		$ 853,480	$ 516,870	$ 2,263,429	$ 1,387,030
Cost of revenues		748,515	451,251	2,076,576	1,249,495
Marketing		173,548	133,267	428,839	362,106
Contribution profit (loss)		(68,583)	(67,648)	(241,986)	(224,571)
Amortization of content assets		$ 627,069	$ 378,378	$ 1,748,822	$ 1,056,279
Domestic DVD
Segment Reporting Information [Line Items]
Total memberships at end of period | subscription	[1]	4,273	5,060	4,273	5,060
Revenues		$ 132,375	$ 157,524	$ 415,854	$ 494,742
Cost of revenues		63,671	77,793	204,596	252,482
Marketing		0	0	0	0
Contribution profit (loss)		68,704	79,731	211,258	242,260
Amortization of content assets		$ 19,284	$ 18,589	$ 59,746	$ 60,587
[1]	A membership (also referred to as a subscription or a member) is defined as the right to receive 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 the Company's internal systems, which utilize industry standard geo-location technology. The Company offers 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 the Company's banks or integrated payment partners. The number of members in a grace period at any given point is not material.