NETFLIX INC, 10-Q filed on 4/21/2022
Quarterly Report
v3.22.1
Cover Page
 3 Months Ended
Mar. 31, 2022
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Mar. 31, 2022
Document Transition Report false
Entity File Number 001-35727
Entity Registrant Name Netflix, Inc.
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 77-0467272
Entity Address, Address Line One 100 Winchester Circle,
Entity Address, City or Town Los Gatos,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95032
City Area Code 408
Local Phone Number 540-3700
Title of each class Common stock, par value $0.001 per share
Trading Symbol(s) NFLX
Name of each exchange on which registered NASDAQ
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Common Stock, Shares Outstanding 444,273,850
Entity Central Index Key 0001065280
Document Fiscal Year Focus 2022
Document Fiscal Period Focus Q1
Amendment Flag false
Current Fiscal Year End Date --12-31
v3.22.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement [Abstract]    
Revenues $ 7,867,767 $ 7,163,282
Cost of revenues 4,284,705 3,868,511
Marketing 555,978 512,512
Technology and development 657,530 525,207
General and administrative 397,928 297,196
Operating income 1,971,626 1,959,856
Other income (expense):    
Interest expense (187,579) (194,440)
Interest and other income 195,645 269,086
Income before income taxes 1,979,692 2,034,502
Provision for income taxes (382,245) (327,787)
Net income $ 1,597,447 $ 1,706,715
Earnings per share:    
Basic (dollars per share) $ 3.60 $ 3.85
Diluted (dollars per share) $ 3.53 $ 3.75
Weighted-average shares of common stock outstanding:    
Basic (in shares) 444,146 443,224
Diluted (in shares) 452,984 455,641
v3.22.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Net income $ 1,597,447 $ 1,706,715
Other comprehensive loss:    
Foreign currency translation adjustments (33,675) (40,261)
Comprehensive income $ 1,563,772 $ 1,666,454
v3.22.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash flows from operating activities:    
Net income $ 1,597,447 $ 1,706,715
Adjustments to reconcile net income to net cash provided by operating activities:    
Additions to content assets (3,584,164) (3,284,576)
Change in content liabilities (347,149) (266,040)
Amortization of content assets 3,166,365 2,719,196
Depreciation and amortization of property, equipment and intangibles 74,602 35,741
Stock-based compensation expense 119,209 107,230
Foreign currency remeasurement gain on debt (161,821) (253,330)
Other non-cash items 101,968 72,657
Deferred income taxes (68,906) 159,733
Changes in operating assets and liabilities:    
Other current assets 41,157 (221,555)
Accounts payable (215,444) (137,313)
Accrued expenses and other liabilities 350,763 177,897
Deferred revenue 16,743 22,279
Other non-current assets and liabilities (167,931) (61,368)
Net cash provided by operating activities 922,839 777,266
Cash flows from investing activities:    
Purchases of property and equipment (121,158) (81,001)
Change in other assets 0 (4,615)
Acquisitions (124,521) 0
Net cash used in investing activities (245,679) (85,616)
Cash flows from financing activities:    
Repayments of debt (700,000) (500,000)
Proceeds from issuance of common stock 13,678 48,071
Net cash used in financing activities (686,322) (451,929)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (11,448) (42,138)
Net increase (decrease) in cash, cash equivalents and restricted cash (20,610) 197,583
Cash, cash equivalents and restricted cash at beginning of period 6,055,111 8,238,870
Cash, cash equivalents and restricted cash at end of period $ 6,034,501 $ 8,436,453
v3.22.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 6,008,946 $ 6,027,804
Other current assets 2,089,069 2,042,021
Total current assets 8,098,015 8,069,825
Content assets, net 31,191,920 30,919,539
Property and equipment, net 1,383,763 1,323,453
Other non-current assets 4,657,206 4,271,846
Total assets 45,330,904 44,584,663
Current liabilities:    
Current content liabilities 4,066,289 4,292,967
Accounts payable 617,202 837,483
Accrued expenses and other liabilities 1,817,117 1,449,351
Deferred revenue 1,239,048 1,209,342
Short-term debt 0 699,823
Total current liabilities 7,739,656 8,488,966
Non-current content liabilities 2,945,221 3,094,213
Long-term debt 14,534,561 14,693,072
Other non-current liabilities 2,567,427 2,459,164
Total liabilities 27,786,865 28,735,415
Commitments and contingencies
Stockholders’ equity:    
Common stock, $0.001 par value; 4,990,000,000 shares authorized at March 31, 2022 and December 31, 2021; 444,273,850 and 443,963,107 issued and outstanding at March 31, 2022 and December 31, 2021, respectively 4,155,580 4,024,561
Treasury stock at cost (1,564,478 shares at March 31, 2022) (824,190) (824,190)
Accumulated other comprehensive loss (74,170) (40,495)
Retained earnings 14,286,819 12,689,372
Total stockholders’ equity 17,544,039 15,849,248
Total liabilities and stockholders’ equity $ 45,330,904 $ 44,584,663
v3.22.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2022
Dec. 31, 2021
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) 444,273,850 443,963,107
Common stock, shares outstanding (shares) 444,273,850 443,963,107
Treasury stock (shares) 1,564,478  
v3.22.1
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common stock and additional paid-in capital
Treasury stock
Accumulated other comprehensive loss
Retained earnings
Beginning Balance at Dec. 31, 2020 $ 11,065,240 $ 3,447,698 $ 0 $ 44,398 $ 7,573,144
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon exercise of options   45,156      
Stock-based compensation expense   107,230      
Other comprehensive loss       (40,261)  
Net income 1,706,715       1,706,715
Ending Balance at Mar. 31, 2021 12,884,080 3,600,084 0 4,137 9,279,859
Beginning Balance at Dec. 31, 2021 15,849,248 4,024,561 (824,190) (40,495) 12,689,372
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon exercise of options   11,810      
Stock-based compensation expense   119,209      
Other comprehensive loss       (33,675)  
Net income 1,597,447       1,597,447
Ending Balance at Mar. 31, 2022 $ 17,544,039 $ 4,155,580 $ (824,190) $ (74,170) $ 14,286,819
v3.22.1
Basis of Presentation and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2022
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 interim consolidated 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, 2021 filed with the Securities and Exchange Commission (the “SEC”) on January 27, 2022. 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 content asset amortization policy and the recognition and measurement of income tax assets and liabilities. 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 consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Interim results are not necessarily indicative of the results for a full year.
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, 2021.

Recently adopted accounting pronouncements
In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The Company adopted ASU 2021-08 in the first quarter of 2022 and the adoption had no material impact to the Company’s consolidated financial statements.
v3.22.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company's primary source of revenues is from monthly membership fees. Members are billed in advance of the start of their monthly membership and revenues are recognized ratably over each monthly membership period. Revenues are presented net of the taxes that are collected from members and remitted to governmental authorities. The Company is the principal in all its relationships where partners, including consumer electronics (“CE”) manufacturers, multichannel video programming distributors (“MVPDs”), mobile operators and internet service providers (“ISPs”), provide access to the service as the Company retains control over service delivery to its members. Typically, payments made to the partners, such as for marketing, are expensed. However, if there is no distinct service provided in exchange for the payments made to the partners or if the price that the member pays is established by the partners and there is no standalone price for the Netflix service (for instance, in a bundle), these payments are recognized as a reduction of revenues.
The following tables summarize streaming revenue, paid net membership additions, and paid memberships at end of period by region for the three months ended March 31, 2022 and 2021, respectively:

United States and Canada (UCAN)
As of/ Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands)
Revenues$3,350,424 $3,170,972 
Paid net membership additions (losses)(636)448 
Paid memberships at end of period (1)74,579 74,384 
Europe, Middle East, and Africa (EMEA)
As of/ Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands)
Revenues$2,561,831 $2,343,674 
Paid net membership additions (losses)(303)1,810 
Paid memberships at end of period (1)73,733 68,508 

Latin America (LATAM)
As of/ Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands)
Revenues$998,948 $836,647 
Paid net membership additions (losses)(351)357 
Paid memberships at end of period (1)39,610 37,894 

Asia-Pacific (APAC)
As of/ Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands)
Revenues$916,754 $762,414 
Paid net membership additions1,087 1,361 
Paid memberships at end of period (1)33,719 26,853 
(1) A paid membership (also referred to as a paid subscription) is defined as a membership that has the right to receive Netflix service following sign-up and a method of payment being provided, and that is not part of a free trial or certain other promotions that may be offered by the Company to new or rejoining members. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations generally become effective at the end of the prepaid membership period. Involuntary cancellations, as a result of a failed method of payment, become effective immediately. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by the Company’s internal systems, which utilize industry standard geo-location technology.
Total U.S. revenues, inclusive of DVD revenues not reported in the tables above, were $3.1 billion and $3.0 billion for the three months ended March 31, 2022 and 2021, respectively. DVD revenues were $40 million and $50 million for the three months ended March 31, 2022 and 2021, respectively.
Deferred revenue consists of membership fees billed that have not been recognized, as well as gift cards and other prepaid memberships that have not been fully redeemed. As of March 31, 2022, total deferred revenue was $1,239 million, the vast majority of which was related to membership fees billed that are expected to be recognized as revenue within the next month. The remaining deferred revenue balance, which is related to gift cards and other prepaid memberships, will be recognized as revenue over the period of service after redemption, which is expected to occur over the next 12 months. The $30 million increase in deferred revenue as compared to the balance of $1,209 million as of December 31, 2021 is a result of the increase in average monthly revenue per paying member and acquisition-related deferred revenue.
v3.22.1
Earnings Per Share
 3 Months Ended
Mar. 31, 2022
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 outstanding shares of common stock during the period. Potential shares of common stock consist of incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share is as follows:
Three Months Ended
March 31,
2022		March 31,
2021
(in thousands, except per share data)
Basic earnings per share:
Net income
$1,597,447 $1,706,715 
Shares used in computation:
Weighted-average shares of common stock outstanding444,146 443,224 
Basic earnings per share$3.60 $3.85 
Diluted earnings per share:
Net income
$1,597,447 $1,706,715 
Shares used in computation:
Weighted-average shares of common stock outstanding444,146 443,224 
Employee stock options8,838 12,417 
Weighted-average number of shares
452,984 455,641 
Diluted earnings per share$3.53 $3.75 

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 shares of common stock excluded from the diluted calculation:
Three Months Ended
March 31,
2022		March 31,
2021
(in thousands)
Employee stock options2,749 257 
v3.22.1
Cash, Cash Equivalents and Restricted Cash
 3 Months Ended
Mar. 31, 2022
Short-Term Investments And Fair Value Measurement [Abstract]  
Cash, Cash Equivalents and Restricted Cash Cash, Cash Equivalents and Restricted Cash
The following tables summarize the Company's cash, cash equivalents, and restricted cash as of March 31, 2022 and December 31, 2021:

 As of March 31, 2022
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$4,568,719 $955 $24,454 $4,594,128 
Level 1 securities:
Money market funds1,440,227 — 146 1,440,373 
$6,008,946 $955 $24,600 $6,034,501 

 As of December 31, 2021
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$4,103,613 $3,189 $23,972 $4,130,774 
Level 1 securities:
Money market funds1,924,191 — 146 1,924,337 
$6,027,804 $3,189 $24,118 $6,055,111 
Other current assets include restricted cash for deposits related to self insurance. Non-current assets include restricted cash related to letter of credit agreements.
There were no material gross realized gains or losses in the three months ended March 31, 2022 or 2021.
v3.22.1
Balance Sheet Components
 3 Months Ended
Mar. 31, 2022
Balance Sheet Components Disclosure [Abstract]  
Balance Sheet Components Balance Sheet Components
Content Assets, Net
Content assets consisted of the following:
As of
March 31,
2022		December 31,
2021
(in thousands)
Licensed content, net
$12,923,692 $13,799,221 
Produced content, net
Released, less amortization
7,111,245 6,877,743 
In production
10,175,960 9,235,975 
In development and pre-production
981,023 1,006,600 
18,268,228 17,120,318 

Content assets, net
$31,191,920 $30,919,539 

As of March 31, 2022, approximately $5,606 million, $2,963 million, and $1,815 million of the $12,924 million unamortized cost of the licensed content is expected to be amortized in each of the next three years.  As of March 31, 2022, approximately $2,807 million, $1,933 million, and $1,182 million of the $7,111 million unamortized cost of the produced content that has been released is expected to be amortized in each of the next three years.
As of March 31, 2022, the amount of accrued participations and residuals was not material.
The following tables represent the amortization of content assets:
Three Months Ended
 March 31,
2022		March 31,
2021
(in thousands)
Licensed content$1,884,438 $1,829,246 
Produced content1,281,927 889,950 
Total$3,166,365 $2,719,196 

Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
As of
March 31,
2022		December 31,
2021		Estimated Useful Lives
(in thousands)
Land
$82,381 $82,381 
Buildings
48,625 48,123 30 years
Leasehold improvements
983,209 863,342 Over life of lease
Furniture and fixtures
147,059 139,809 
3 years
Information technology
448,608 380,452 3 years
Corporate aircraft
110,978 110,978 8 years
Machinery and equipment
32,613 32,426 
3-5 years
Capital work-in-progress
220,422 282,248 
Property and equipment, gross
2,073,895 1,939,759 
Less: Accumulated depreciation
(690,132)(616,306)
Property and equipment, net
$1,383,763 $1,323,453 


Leases
The Company has entered into operating leases primarily for real estate. Operating leases are included in "Other non-current assets" on the Company's Consolidated Balance Sheets, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are included in "Accrued expenses and other liabilities" and "Other non-current liabilities" on the Company's Consolidated Balance Sheets. The Company has entered into various short-term operating leases, primarily for marketing billboards, with an initial term of twelve months or less. These leases are not recorded on the Company's Consolidated Balance Sheets. All operating lease expense is recognized on a straight-line basis over the lease term. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.
Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows:
Three Months Ended
March 31,
2022		March 31,
2021
(in thousands)
Cash paid for operating lease liabilities$103,141 $82,439 
Right-of-use assets obtained in exchange for new operating lease obligations141,298 49,445 
As of
March 31,
2022		December 31,
2021
(in thousands)
Operating lease right-of-use assets, net$2,483,778 $2,446,573 
Current operating lease liabilities330,936 315,189 
Non-current operating lease liabilities2,434,078 2,408,486 
Total operating lease liabilities$2,765,014 $2,723,675 
Other Current Assets
Other current assets consisted of the following:
As of
March 31,
2022		December 31,
2021
(in thousands)
Trade receivables
$824,650 $804,320 
Prepaid expenses
419,134 323,818 
Other
845,285 913,883 
Total other current assets
$2,089,069 $2,042,021 
v3.22.1
Debt
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
As of March 31, 2022, the Company had aggregate outstanding notes of $14,535 million, net of $88 million of issuance costs, with varying maturities (the "Notes"). As of December 31, 2021, the Company had aggregate outstanding notes of $15,393 million, net of $92 million of issuance costs. Each of the Notes were issued at par and are senior unsecured obligations of the Company. Interest is payable semi-annually at fixed rates. A portion of the outstanding Notes is denominated in foreign currency (comprised of €5,170 million) and is remeasured into U.S. dollars at each balance sheet date (with remeasurement gain totaling $162 million for the three months ended March 31, 2022).
The following table provides a summary of the Company's outstanding debt and the fair values based on quoted market prices in less active markets as of March 31, 2022 and December 31, 2021:
Principal Amount at ParLevel 2 Fair Value as of
March 31,
2022		December 31,
2021		Issuance DateMaturityMarch 31,
2022		December 31,
2021
(in millions)(in millions)
5.500% Senior Notes
— 700 February 2015February 2022— 704 
5.750% Senior Notes
400 400 February 2014March 2024419 437 
5.875% Senior Notes
800 800 February 2015February 2025855 899 
3.000% Senior Notes (1)
520 535 April 2020June 2025545 581 
3.625% Senior Notes
500 500 April 2020June 2025502 529 
4.375% Senior Notes
1,000 1,000 October 2016November 20261,039 1,111 
3.625% Senior Notes (1)
1,439 1,480 May 2017May 20271,539 1,702 
4.875% Senior Notes
1,600 1,600 October 2017April 20281,671 1,829 
5.875% Senior Notes
1,900 1,900 April 2018November 20282,096 2,293 
4.625% Senior Notes (1)
1,218 1,252 October 2018May 20291,376 1,565 
6.375% Senior Notes
800 800 October 2018May 2029907 999 
3.875% Senior Notes (1)
1,328 1,366 April 2019November 20291,444 1,651 
5.375% Senior Notes
900 900 April 2019November 2029977 1,068 
3.625% Senior Notes (1)
1,218 1,252 October 2019June 20301,291 1,493 
4.875% Senior Notes
1,000 1,000 October 2019June 20301,068 1,169 
$14,623 $15,485 $15,729 $18,030 
(1) The following Senior Notes have a principal amount denominated in euro: 3.000% Senior Notes for €470 million, 3.625% Senior Notes for €1,300 million, 4.625% Senior Notes for €1,100 million, 3.875% Senior Notes for €1,200 million, and 3.625% Senior Notes for €1,100 million.

In February 2022, the Company repaid upon maturity the $700 million aggregate principal amount of its 5.500% Senior Notes.

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 March 31, 2022 and December 31, 2021, the Company was in compliance with all related covenants.
Revolving Credit Facility
On June 17, 2021, the Company amended its unsecured revolving credit facility ("Revolving Credit Agreement") to, among other things, extend the maturity date from March 29, 2024 to June 17, 2026 and to increase the size of the facility from $750 million to $1 billion. Revolving loans may be borrowed, repaid and reborrowed until June 17, 2026, at which time all amounts borrowed must be repaid. The Company may use the proceeds of future borrowings under the Revolving Credit Agreement for working capital and general corporate purposes. As of March 31, 2022, no amounts have been borrowed under the Revolving Credit Agreement.
The borrowings under the Revolving Credit Agreement bear interest, at the Company’s option, of either (i) a floating rate equal to a base rate (the “Alternate Base Rate”) or (ii) a rate equal to an adjusted London interbank offered rate (the “Adjusted LIBO Rate”), plus a margin of
0.75%. The Alternate Base Rate is defined as the greatest of (A) the rate of interest published by the Wall Street Journal, from time to time, as the prime rate, (B) the federal funds rate, plus 0.500% and (C) the Adjusted LIBO Rate for a one-month interest period, plus 1.00%. The Adjusted LIBO Rate is defined as the London interbank offered rate for deposits in U.S. dollars, for the relevant interest period, adjusted for statutory reserve requirements, but in no event shall the Adjusted LIBO Rate be less than 0.00% per annum. Regulatory authorities that oversee financial markets have announced that publication of the Adjusted LIBO Rate based upon U.S. Dollars is expected to cease on June 30, 2023. The Revolving Credit Agreement contains customary provisions for the replacement of the Adjusted LIBO Rate with an alternate benchmark rate, including a rate based on the secured overnight financing rate published by the Federal Reserve Bank of New York, as the Adjusted LIBO Rate is phased out in the lending market. The Company does not anticipate that the replacement of the Adjusted LIBO Rate with such alternative benchmark rate, as provided in the Revolving Credit Agreement, will materially impact its liquidity or financial position.
The Company is also obligated to pay a commitment fee on the undrawn amounts of the Revolving Credit Agreement at an annual rate of 0.10%. The Revolving Credit Agreement requires the Company to comply with certain covenants, including covenants that limit or restrict the ability of the Company’s subsidiaries to incur debt and limit or restrict the ability of the Company and its subsidiaries to grant liens and enter into sale and leaseback transactions; and, in the case of the Company or a guarantor, merge, consolidate, liquidate, dissolve or sell, transfer, lease or otherwise dispose of all or substantially all of the assets of the Company and its subsidiaries, taken as a whole. As of March 31, 2022 and December 31, 2021, the Company was in compliance with all related covenants.
v3.22.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Content
As of March 31, 2022, the Company had $22.4 billion of obligations comprised of $4.1 billion included in "Current content liabilities" and $2.9 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $15.4 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition.
As of December 31, 2021, the Company had $23.2 billion of obligations comprised of $4.3 billion included in "Current content liabilities" and $3.1 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $15.8 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition.
The expected timing of payments for these content obligations is as follows:
As of 
March 31,
2022		December 31,
2021
(in thousands)
Less than one year
$9,861,979 $10,019,306 
Due after one year and through three years
9,089,537 9,238,315 
Due after three years and through five years
3,072,216 3,238,977 
Due after five years
341,828 664,762 
Total content obligations
$22,365,560 $23,161,360 
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. An obligation for the production of content includes non-cancelable commitments under creative talent and employment agreements as well as other production related commitments. An 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 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, 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.
The Company is involved in litigation matters not listed herein 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.
v3.22.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders’ Equity
Stock Option Plan
In June 2020, the Company's stockholders approved the 2020 Stock Plan, which was adopted by the Company’s Board of Directors in March 2020 subject to stockholder approval. The 2020 Stock Plan is the successor to the 2011 Stock Plan and 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.
A summary of the activities related to the Company’s stock option plans is as follows:
Options Outstanding
Shares
Available
for Grant		Number of
Shares		Weighted-
Average
Exercise Price
(per share)
Balances as of December 31, 202120,145,360 17,595,851 $219.83 
Granted
(523,787)523,787 460.28
Exercised
— (310,743)38.00 
Expired
— (1,246)16.11 
Balances as of March 31, 202219,621,573 17,807,649 $230.09 

The aggregate intrinsic value of the Company's outstanding stock options as of March 31, 2022 was $3,024 million and represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the first quarter of 2022 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 first quarter of 2022. This amount changes based on the fair market value of the Company’s common stock. The weighted-average remaining contractual term of the Company's outstanding stock options as of March 31, 2022 included in the table above was 5.33 years. All options outstanding are vested and exercisable.
A summary of the amounts related to option exercises, is as follows:
Three Months Ended
March 31,
2022		March 31,
2021
(in thousands)
Total intrinsic value of options exercised$114,762 $228,020 
Cash received from options exercised13,678 48,071 
Stock-based Compensation
Stock options granted are exercisable for the full ten year contractual term regardless of employment status. The following table summarizes the assumptions used to value option grants using the lattice-binomial model and the valuation data:
Three Months Ended
March 31,
2022		March 31,
2021
Dividend yield— %— %
Expected volatility38 %41 %
Risk-free interest rate1.71 %1.08 %
Suboptimal exercise factor4.71 3.81 
Weighted-average fair value (per share)$228 $268 
Total stock-based compensation expense (in thousands)$119,209 $107,230 
Total income tax impact on provision (in thousands)$26,413 $24,079 

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.
Stock Repurchases
In March 2021, the Company’s Board of Directors authorized the repurchase of up to $5 billion of its common stock, with no expiration date. Stock repurchases may be effected through open market repurchases in compliance with Rule 10b-18 under the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, privately-negotiated transactions, accelerated stock repurchase plans, block purchases, or other similar purchase techniques and in such amounts as management deems appropriate. The Company is not obligated to repurchase any specific number of shares, and the timing and actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, general economic, business and market conditions, and alternative investment opportunities. The Company may discontinue any repurchases of its common stock at any time without prior notice. There were no repurchases during the three months ended March 31, 2022. As of March 31, 2022, $4.4 billion remain available for repurchases. Shares repurchased by the Company are accounted for when the transaction is settled. As of March 31, 2022, there were no unsettled share repurchases. Direct costs incurred to acquire the shares are included in the total cost of the shares.
v3.22.1
Income Taxes
 3 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands, except percentages)
Provision for income taxes$382,245 $327,787 
Effective tax rate19 %16 %
The effective tax rate for the three months ended March 31, 2022 differed from the Federal statutory rate primarily due to an increase in foreign taxes, offset by the impact of international provisions of the Tax Cuts and Jobs Act, and the recognition of excess tax benefits of stock-based compensation. The effective tax rate for the three months ended March 31, 2021 differed from the Federal statutory rate primarily due to the impact of international provisions of the Tax Cuts and Jobs Act and recognition of excess tax benefits of stock-based compensation.
The increase in the effective tax rate for the three months ended March 31, 2022, as compared to the same period in 2021 was primarily due to an increase in foreign taxes and a reduction to excess tax benefits of stock-based compensation. For the three months ended March 31, 2022, the Company recognized a discrete tax benefit related to the excess tax benefits from stock-based compensation of $25 million, compared to the three months ended March 31, 2021 of $47 million.
Gross unrecognized tax benefits were $215 million and $203 million as of March 31, 2022 and December 31, 2021, respectively. The gross unrecognized tax benefits as of March 31, 2022, if recognized by the Company, will result in a reduction of approximately $143 million to the provision for income taxes thereby favorably impacting the Company’s effective tax rate.
The Company files U.S. Federal, state and foreign tax returns. The Company is currently under examination by the IRS for 2016 through 2018 and is subject to examination for 2019 through 2021. The foreign and state tax returns for years 2015 through 2021 are subject to examination by various states and foreign jurisdictions.
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. However, an estimate of the range of reasonably possible adjustments cannot be made at this time.
v3.22.1
Segment and Geographic Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
The Company operates as one operating segment. The Company's chief operating decision maker ("CODM") is its co-chief executive officers, who review financial information presented on a consolidated basis for the purposes of making operating decisions, assessing financial performance and allocating resources.
Total U.S. revenues were $3.1 billion and $3.0 billion for the three months ended March 31, 2022 and 2021, respectively. See Note 2 Revenue Recognition for additional information about streaming revenue by region.
The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021, were located as follows:
As of
March 31,
2022		December 31,
2021
(in thousands)
United States$2,885,860 $2,833,059 
International981,681 936,967 
v3.22.1
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2022
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 content asset amortization policy and the recognition and measurement of income tax assets and liabilities. 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.
Recently adopted accounting pronouncements
Recently adopted accounting pronouncements
In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The Company adopted ASU 2021-08 in the first quarter of 2022 and the adoption had no material impact to the Company’s consolidated financial statements.
v3.22.1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Summary of Streaming Revenue, Paid net Membership Additions, and Ending Paid Memberships by Region
The following tables summarize streaming revenue, paid net membership additions, and paid memberships at end of period by region for the three months ended March 31, 2022 and 2021, respectively:

United States and Canada (UCAN)
As of/ Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands)
Revenues$3,350,424 $3,170,972 
Paid net membership additions (losses)(636)448 
Paid memberships at end of period (1)74,579 74,384 
Europe, Middle East, and Africa (EMEA)
As of/ Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands)
Revenues$2,561,831 $2,343,674 
Paid net membership additions (losses)(303)1,810 
Paid memberships at end of period (1)73,733 68,508 

Latin America (LATAM)
As of/ Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands)
Revenues$998,948 $836,647 
Paid net membership additions (losses)(351)357 
Paid memberships at end of period (1)39,610 37,894 

Asia-Pacific (APAC)
As of/ Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands)
Revenues$916,754 $762,414 
Paid net membership additions1,087 1,361 
Paid memberships at end of period (1)33,719 26,853 
(1) A paid membership (also referred to as a paid subscription) is defined as a membership that has the right to receive Netflix service following sign-up and a method of payment being provided, and that is not part of a free trial or certain other promotions that may be offered by the Company to new or rejoining members. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations generally become effective at the end of the prepaid membership period. Involuntary cancellations, as a result of a failed method of payment, become effective immediately. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by the Company’s internal systems, which utilize industry standard geo-location technology.
v3.22.1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
Summary of Computation of Earnings Per Share The computation of earnings per share is as follows:
Three Months Ended
March 31,
2022		March 31,
2021
(in thousands, except per share data)
Basic earnings per share:
Net income
$1,597,447 $1,706,715 
Shares used in computation:
Weighted-average shares of common stock outstanding444,146 443,224 
Basic earnings per share$3.60 $3.85 
Diluted earnings per share:
Net income
$1,597,447 $1,706,715 
Shares used in computation:
Weighted-average shares of common stock outstanding444,146 443,224 
Employee stock options8,838 12,417 
Weighted-average number of shares
452,984 455,641 
Diluted earnings per share$3.53 $3.75 
Summary of Potential Common Shares Excluded from the Diluted Calculation The following table summarizes the potential shares of common stock excluded from the diluted calculation:
Three Months Ended
March 31,
2022		March 31,
2021
(in thousands)
Employee stock options2,749 257 
v3.22.1
Cash, Cash Equivalents and Restricted Cash (Tables)
 3 Months Ended
Mar. 31, 2022
Short-Term Investments And Fair Value Measurement [Abstract]  
Summary of Cash and Cash Equivalents and Restricted Cash
The following tables summarize the Company's cash, cash equivalents, and restricted cash as of March 31, 2022 and December 31, 2021:

 As of March 31, 2022
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$4,568,719 $955 $24,454 $4,594,128 
Level 1 securities:
Money market funds1,440,227 — 146 1,440,373 
$6,008,946 $955 $24,600 $6,034,501 

 As of December 31, 2021
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$4,103,613 $3,189 $23,972 $4,130,774 
Level 1 securities:
Money market funds1,924,191 — 146 1,924,337 
$6,027,804 $3,189 $24,118 $6,055,111 
v3.22.1
Balance Sheet Components (Tables)
 3 Months Ended
Mar. 31, 2022
Balance Sheet Components Disclosure [Abstract]  
Summary of Content Assets
Content assets consisted of the following:
As of
March 31,
2022		December 31,
2021
(in thousands)
Licensed content, net
$12,923,692 $13,799,221 
Produced content, net
Released, less amortization
7,111,245 6,877,743 
In production
10,175,960 9,235,975 
In development and pre-production
981,023 1,006,600 
18,268,228 17,120,318 

Content assets, net
$31,191,920 $30,919,539 
Summary of Amortization of Streaming Content Assets
The following tables represent the amortization of content assets:
Three Months Ended
 March 31,
2022		March 31,
2021
(in thousands)
Licensed content$1,884,438 $1,829,246 
Produced content1,281,927 889,950 
Total$3,166,365 $2,719,196 
Summary of Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
As of
March 31,
2022		December 31,
2021		Estimated Useful Lives
(in thousands)
Land
$82,381 $82,381 
Buildings
48,625 48,123 30 years
Leasehold improvements
983,209 863,342 Over life of lease
Furniture and fixtures
147,059 139,809 
3 years
Information technology
448,608 380,452 3 years
Corporate aircraft
110,978 110,978 8 years
Machinery and equipment
32,613 32,426 
3-5 years
Capital work-in-progress
220,422 282,248 
Property and equipment, gross
2,073,895 1,939,759 
Less: Accumulated depreciation
(690,132)(616,306)
Property and equipment, net
$1,383,763 $1,323,453 
Summary of Information on Right-of-Use Assets and Lease Liabilities
Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows:
Three Months Ended
March 31,
2022		March 31,
2021
(in thousands)
Cash paid for operating lease liabilities$103,141 $82,439 
Right-of-use assets obtained in exchange for new operating lease obligations141,298 49,445 
As of
March 31,
2022		December 31,
2021
(in thousands)
Operating lease right-of-use assets, net$2,483,778 $2,446,573 
Current operating lease liabilities330,936 315,189 
Non-current operating lease liabilities2,434,078 2,408,486 
Total operating lease liabilities$2,765,014 $2,723,675 
Summary of Other Current Assets
Other current assets consisted of the following:
As of
March 31,
2022		December 31,
2021
(in thousands)
Trade receivables
$824,650 $804,320 
Prepaid expenses
419,134 323,818 
Other
845,285 913,883 
Total other current assets
$2,089,069 $2,042,021 
v3.22.1
Debt (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Summary of Long-term Debt
The following table provides a summary of the Company's outstanding debt and the fair values based on quoted market prices in less active markets as of March 31, 2022 and December 31, 2021:
Principal Amount at ParLevel 2 Fair Value as of
March 31,
2022		December 31,
2021		Issuance DateMaturityMarch 31,
2022		December 31,
2021
(in millions)(in millions)
5.500% Senior Notes
— 700 February 2015February 2022— 704 
5.750% Senior Notes
400 400 February 2014March 2024419 437 
5.875% Senior Notes
800 800 February 2015February 2025855 899 
3.000% Senior Notes (1)
520 535 April 2020June 2025545 581 
3.625% Senior Notes
500 500 April 2020June 2025502 529 
4.375% Senior Notes
1,000 1,000 October 2016November 20261,039 1,111 
3.625% Senior Notes (1)
1,439 1,480 May 2017May 20271,539 1,702 
4.875% Senior Notes
1,600 1,600 October 2017April 20281,671 1,829 
5.875% Senior Notes
1,900 1,900 April 2018November 20282,096 2,293 
4.625% Senior Notes (1)
1,218 1,252 October 2018May 20291,376 1,565 
6.375% Senior Notes
800 800 October 2018May 2029907 999 
3.875% Senior Notes (1)
1,328 1,366 April 2019November 20291,444 1,651 
5.375% Senior Notes
900 900 April 2019November 2029977 1,068 
3.625% Senior Notes (1)
1,218 1,252 October 2019June 20301,291 1,493 
4.875% Senior Notes
1,000 1,000 October 2019June 20301,068 1,169 
$14,623 $15,485 $15,729 $18,030 
(1) The following Senior Notes have a principal amount denominated in euro: 3.000% Senior Notes for €470 million, 3.625% Senior Notes for €1,300 million, 4.625% Senior Notes for €1,100 million, 3.875% Senior Notes for €1,200 million, and 3.625% Senior Notes for €1,100 million.
v3.22.1
Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Summary of Expected Timing of Payments for Content Obligations
The expected timing of payments for these content obligations is as follows:
As of 
March 31,
2022		December 31,
2021
(in thousands)
Less than one year
$9,861,979 $10,019,306 
Due after one year and through three years
9,089,537 9,238,315 
Due after three years and through five years
3,072,216 3,238,977 
Due after five years
341,828 664,762 
Total content obligations
$22,365,560 $23,161,360 
v3.22.1
Stockholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2022
Stockholders' Equity Note [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
Available
for Grant		Number of
Shares		Weighted-
Average
Exercise Price
(per share)
Balances as of December 31, 202120,145,360 17,595,851 $219.83 
Granted
(523,787)523,787 460.28
Exercised
— (310,743)38.00 
Expired
— (1,246)16.11 
Balances as of March 31, 202219,621,573 17,807,649 $230.09 
Summary of Amounts Related to Option Exercises
A summary of the amounts related to option exercises, is as follows:
Three Months Ended
March 31,
2022		March 31,
2021
(in thousands)
Total intrinsic value of options exercised$114,762 $228,020 
Cash received from options exercised13,678 48,071 
Summary of Assumptions Used to Value Stock Option Grants Using Lattice-Binomial Model The following table summarizes the assumptions used to value option grants using the lattice-binomial model and the valuation data:
Three Months Ended
March 31,
2022		March 31,
2021
Dividend yield— %— %
Expected volatility38 %41 %
Risk-free interest rate1.71 %1.08 %
Suboptimal exercise factor4.71 3.81 
Weighted-average fair value (per share)$228 $268 
Total stock-based compensation expense (in thousands)$119,209 $107,230 
Total income tax impact on provision (in thousands)$26,413 $24,079 
v3.22.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of Components of Income Tax Expense (Benefit)
 Three Months Ended
 March 31,
2022		March 31,
2021
 (in thousands, except percentages)
Provision for income taxes$382,245 $327,787 
Effective tax rate19 %16 %
v3.22.1
Segment and Geographic Information (Tables)
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Summary of Long-lived Assets by Geographic Areas
The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021, were located as follows:
As of
March 31,
2022		December 31,
2021
(in thousands)
United States$2,885,860 $2,833,059 
International981,681 936,967 
v3.22.1
Revenue Recognition - Revenue and Membership Information (Details)
membership in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
membership
Mar. 31, 2021
USD ($)
membership
Disaggregation of Revenue [Line Items]    
Revenues | $ $ 7,867,767 $ 7,163,282
Streaming | United States and Canada    
Disaggregation of Revenue [Line Items]    
Revenues | $ $ 3,350,424 $ 3,170,972
Paid net membership additions (losses) (in memberships) (636) 448
Paid memberships at end of period (in memberships) 74,579 74,384
Streaming | Europe, Middle East, and Africa    
Disaggregation of Revenue [Line Items]    
Revenues | $ $ 2,561,831 $ 2,343,674
Paid net membership additions (losses) (in memberships) (303) 1,810
Paid memberships at end of period (in memberships) 73,733 68,508
Streaming | Latin America    
Disaggregation of Revenue [Line Items]    
Revenues | $ $ 998,948 $ 836,647
Paid net membership additions (losses) (in memberships) (351) 357
Paid memberships at end of period (in memberships) 39,610 37,894
Streaming | Asia-Pacific    
Disaggregation of Revenue [Line Items]    
Revenues | $ $ 916,754 $ 762,414
Paid net membership additions (losses) (in memberships) 1,087 1,361
Paid memberships at end of period (in memberships) 33,719 26,853
v3.22.1
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Revenues $ 7,867,767 $ 7,163,282  
Deferred revenue 1,239,048   $ 1,209,342
Increase in deferred revenue 30,000    
DVD      
Disaggregation of Revenue [Line Items]      
Revenues 40,000 50,000  
United States      
Disaggregation of Revenue [Line Items]      
Revenues $ 3,100,000 $ 3,000,000  
v3.22.1
Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Basic earnings per share:    
Net income $ 1,597,447 $ 1,706,715
Weighted-average shares of common stock outstanding (in shares) 444,146 443,224
Basic earnings per share (dollars per share) $ 3.60 $ 3.85
Diluted earnings per share:    
Net income $ 1,597,447 $ 1,706,715
Shares used in computation:    
Weighted-average shares of common stock outstanding (in shares) 444,146 443,224
Employee stock options (in shares) 8,838 12,417
Weighted-average number of shares (in shares) 452,984 455,641
Diluted earnings per share (dollars per share) $ 3.53 $ 3.75
v3.22.1
Earnings Per Share - Antidilutive Shares (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Earnings Per Share [Abstract]    
Antidilutive securities excluded from earnings per share calculations (in shares) 2,749 257
v3.22.1
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Dec. 31, 2020
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash $ 6,034,501 $ 6,055,111 $ 8,436,453 $ 8,238,870
Cash and cash equivalents        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 6,008,946 6,027,804    
Other Current Assets        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 955 3,189    
Non-current Assets        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 24,600 24,118    
Cash        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 4,594,128 4,130,774    
Cash | Cash and cash equivalents        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 4,568,719 4,103,613    
Cash | Other Current Assets        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 955 3,189    
Cash | Non-current Assets        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 24,454 23,972    
Level 1 Securities | Money market funds        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 1,440,373 1,924,337    
Level 1 Securities | Money market funds | Cash and cash equivalents        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 1,440,227 1,924,191    
Level 1 Securities | Money market funds | Other Current Assets        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash 0 0    
Level 1 Securities | Money market funds | Non-current Assets        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents, and restricted cash $ 146 $ 146    
v3.22.1
Balance Sheet Components - Components of Content Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]      
Content assets, net $ 31,191,920   $ 30,919,539
Amortization of content assets 3,166,365 $ 2,719,196  
Licensed content, net      
Finite-Lived Intangible Assets [Line Items]      
Net content 12,923,692   13,799,221
Unamortized cost in year one 5,606,000    
Unamortized cost in year two 2,963,000    
Unamortized cost in year three 1,815,000    
Amortization of content assets 1,884,438 1,829,246  
Produced content, net      
Finite-Lived Intangible Assets [Line Items]      
Net content 7,111,245   6,877,743
In production 10,175,960   9,235,975
In development and pre-production 981,023   1,006,600
Content assets, net 18,268,228   $ 17,120,318
Unamortized cost in year one 2,807,000    
Unamortized cost in year two 1,933,000    
Unamortized cost in year three 1,182,000    
Amortization of content assets $ 1,281,927 $ 889,950  
v3.22.1
Balance Sheet Components - Property And Equipment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 2,073,895 $ 1,939,759
Less: Accumulated depreciation (690,132) (616,306)
Property and equipment, net 1,383,763 1,323,453
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 82,381 82,381
Buildings    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 48,625 48,123
Estimated Useful Lives 30 years  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 983,209 863,342
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 147,059 139,809
Estimated Useful Lives 3 years  
Information technology    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 448,608 380,452
Estimated Useful Lives 3 years  
Corporate aircraft    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 110,978 110,978
Estimated Useful Lives 8 years  
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 32,613 32,426
Machinery and equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives 3 years  
Machinery and equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives 5 years  
Capital work-in-progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 220,422 $ 282,248
v3.22.1
Balance Sheet Components - Leases (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Leases [Abstract]      
Cash paid for operating lease liabilities $ 103,141 $ 82,439  
Right-of-use assets obtained in exchange for new operating lease obligations 141,298 $ 49,445  
Operating lease right-of-use assets, net 2,483,778   $ 2,446,573
Current operating lease liabilities 330,936   315,189
Non-current operating lease liabilities 2,434,078   2,408,486
Total operating lease liabilities $ 2,765,014   $ 2,723,675
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other non-current assets   Other non-current assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current   Accrued Liabilities, Current
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other non-current liabilities   Other non-current liabilities
v3.22.1
Balance Sheet Components - Other Current Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Balance Sheet Components Disclosure [Abstract]    
Trade receivables $ 824,650 $ 804,320
Prepaid expenses 419,134 323,818
Other 845,285 913,883
Total other current assets $ 2,089,069 $ 2,042,021
v3.22.1
Debt - Narrative (Details)
$ in Thousands
 1 Months Ended 3 Months Ended
Feb. 28, 2022
USD ($)
Mar. 31, 2022
USD ($)
Mar. 31, 2021
USD ($)
Mar. 31, 2022
EUR (€)
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]          
Aggregate outstanding notes   $ 14,535,000     $ 15,393,000
Debt issuance costs   88,000     92,000
Long-term notes denominated in foreign currency   14,623,000     15,485,000
Foreign currency transaction gain (loss)   161,821 $ 253,330    
Repayments of debt   700,000 $ 500,000    
Senior Notes          
Debt Instrument [Line Items]          
Long-term notes denominated in foreign currency | €       € 5,170,000,000  
Foreign currency transaction gain (loss)   $ 162,000      
Redemption prices, percent of outstanding principal   101.00%      
Senior Notes | 5.500% Senior Notes          
Debt Instrument [Line Items]          
Long-term notes denominated in foreign currency   $ 0     $ 700,000
Repayments of debt $ 700,000        
Interest rate 5.50% 5.50%   5.50% 5.50%
v3.22.1
Debt - Summary of Long-term Debt (Details)
$ in Millions
Mar. 31, 2022
EUR (€)
Mar. 31, 2022
USD ($)
Feb. 28, 2022
Dec. 31, 2021
EUR (€)
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]          
Face amount   $ 14,623     $ 15,485
Long-term debt, fair value   15,729     18,030
Senior Notes          
Debt Instrument [Line Items]          
Face amount | € € 5,170,000,000        
Senior Notes | 5.500% Senior Notes          
Debt Instrument [Line Items]          
Face amount   0     700
Long-term debt, fair value   $ 0     $ 704
Interest rate 5.50% 5.50% 5.50% 5.50% 5.50%
Senior Notes | 5.750% Senior Notes          
Debt Instrument [Line Items]          
Face amount   $ 400     $ 400
Long-term debt, fair value   $ 419     $ 437
Interest rate 5.75% 5.75%   5.75% 5.75%
Senior Notes | 5.875% Senior Notes          
Debt Instrument [Line Items]          
Face amount   $ 800     $ 800
Long-term debt, fair value   $ 855     $ 899
Interest rate 5.875% 5.875%   5.875% 5.875%
Senior Notes | 3.000% Senior Notes          
Debt Instrument [Line Items]          
Face amount € 470,000,000 $ 520   € 470,000,000 $ 535
Long-term debt, fair value   $ 545     $ 581
Interest rate 3.00% 3.00%   3.00% 3.00%
Senior Notes | 3.625% Senior Notes          
Debt Instrument [Line Items]          
Face amount   $ 500     $ 500
Long-term debt, fair value   $ 502     $ 529
Interest rate 3.625% 3.625%   3.625% 3.625%
Senior Notes | 4.375% Senior Notes          
Debt Instrument [Line Items]          
Face amount   $ 1,000     $ 1,000
Long-term debt, fair value   $ 1,039     $ 1,111
Interest rate 4.375% 4.375%   4.375% 4.375%
Senior Notes | 3.625% Senior Notes          
Debt Instrument [Line Items]          
Face amount € 1,300,000,000 $ 1,439   € 1,300,000,000 $ 1,480
Long-term debt, fair value   $ 1,539     $ 1,702
Interest rate 3.625% 3.625%   3.625% 3.625%
Senior Notes | 4.875% Senior Notes          
Debt Instrument [Line Items]          
Face amount   $ 1,600     $ 1,600
Long-term debt, fair value   $ 1,671     $ 1,829
Interest rate 4.875% 4.875%   4.875% 4.875%
Senior Notes | 5.875% Senior Notes          
Debt Instrument [Line Items]          
Face amount   $ 1,900     $ 1,900
Long-term debt, fair value   $ 2,096     $ 2,293
Interest rate 5.875% 5.875%   5.875% 5.875%
Senior Notes | 4.625% Senior Notes          
Debt Instrument [Line Items]          
Face amount € 1,100,000,000 $ 1,218   € 1,100,000,000 $ 1,252
Long-term debt, fair value   $ 1,376     $ 1,565
Interest rate 4.625% 4.625%   4.625% 4.625%
Senior Notes | 6.375% Senior Notes          
Debt Instrument [Line Items]          
Face amount   $ 800     $ 800
Long-term debt, fair value   $ 907     $ 999
Interest rate 6.375% 6.375%   6.375% 6.375%
Senior Notes | 3.875% Senior Notes          
Debt Instrument [Line Items]          
Face amount € 1,200,000,000 $ 1,328   € 1,200,000,000 $ 1,366
Long-term debt, fair value   $ 1,444     $ 1,651
Interest rate 3.875% 3.875%   3.875% 3.875%
Senior Notes | 5.375% Senior Notes          
Debt Instrument [Line Items]          
Face amount   $ 900     $ 900
Long-term debt, fair value   $ 977     $ 1,068
Interest rate 5.375% 5.375%   5.375% 5.375%
Senior Notes | 3.625% Senior Notes          
Debt Instrument [Line Items]          
Face amount € 1,100,000,000 $ 1,218   € 1,100,000,000 $ 1,252
Long-term debt, fair value   $ 1,291     $ 1,493
Interest rate 3.625% 3.625%   3.625% 3.625%
Senior Notes | 4.875% Senior Notes          
Debt Instrument [Line Items]          
Face amount   $ 1,000     $ 1,000
Long-term debt, fair value   $ 1,068     $ 1,169
Interest rate 4.875% 4.875%   4.875% 4.875%
v3.22.1
Debt - Revolving Line of Credit (Details) - Revolving Credit Facility - USD ($)
 3 Months Ended
Mar. 31, 2022
Jun. 17, 2021
Jun. 16, 2021
Line of Credit Facility [Line Items]      
Line of credit facility, maximum borrowing capacity   $ 1,000,000,000 $ 750,000,000
Amount borrowed $ 0    
Commitment fee percentage 0.10%    
LIBOR      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 0.75%    
Federal Funds Rate      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 0.50%    
One-month LIBOR      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 1.00%    
One-month LIBOR | Minimum      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 0.00%    
v3.22.1
Commitments and Contingencies - Streaming Content (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Contractual Obligation [Line Items]    
Total streaming content obligations $ 22,365,560 $ 23,161,360
Current content liabilities 4,066,289 4,292,967
Non-current content liabilities 2,945,221 3,094,213
Unrecorded streaming obligations 15,400,000 15,800,000
Current content liabilities    
Contractual Obligation [Line Items]    
Current content liabilities 4,100,000 4,300,000
Non-current content liabilities    
Contractual Obligation [Line Items]    
Non-current content liabilities $ 2,900,000 $ 3,100,000
v3.22.1
Commitments and Contingencies - Expected Timing of Payments for Content Obligations (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]    
Less than one year $ 9,861,979 $ 10,019,306
Due after one year and through three years 9,089,537 9,238,315
Due after three years and through five years 3,072,216 3,238,977
Due after five years 341,828 664,762
Total content obligations $ 22,365,560 $ 23,161,360
v3.22.1
Commitments and Contingencies - Indemnification (Details)
Mar. 31, 2022
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Indemnification obligations $ 0
v3.22.1
Stockholders' Equity - Activity Related to Stock Option Plans (Details)
 3 Months Ended
Mar. 31, 2022
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Shares available for grant, beginning balance (in shares) 20,145,360
Options outstanding, number of shares, beginning balance (in shares) 17,595,851
Options outstanding, number of shares granted (in shares) 523,787
Options outstanding, number of shares, exercised (in shares) (310,743)
Options outstanding, number of shares, expired (in shares) (1,246)
Shares available for grant, ending balance (in shares) 19,621,573
Options outstanding, number of shares, ending balance (in shares) 17,807,649
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 $ 219.83
Options outstanding, weighted-average exercise price, granted (dollars per share) | $ / shares 460.28
Options outstanding, weighted-average exercise price, exercised (dollars per share) | $ / shares 38.00
Options expired, weighted-average exercise price (dollars per share) | $ / shares 16.11
Options outstanding, weighted-average exercise price, ending balance (dollars per share) | $ / shares $ 230.09
v3.22.1
Stockholders' Equity - Stock Option Plan Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Stockholders' Equity Note [Abstract]  
Aggregate intrinsic value $ 3,024
Weighted-average remaining contractual term (in years) 5 years 3 months 29 days
Share-based payment award, expiration period (in years) 10 years
v3.22.1
Stockholders' Equity - Amounts Related to Option Exercises (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Stockholders' Equity Note [Abstract]    
Total intrinsic value of options exercised $ 114,762 $ 228,020
Cash received from options exercised $ 13,678 $ 48,071
v3.22.1
Stockholders' Equity - Assumptions Used to Value Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Stockholders' Equity Note [Abstract]    
Dividend yield 0.00% 0.00%
Expected volatility 38.00% 41.00%
Risk-free interest rate 1.71% 1.08%
Suboptimal exercise factor 4.71 3.81
Weighted-average fair value (dollars per share) $ 228 $ 268
Total stock-based compensation expense $ 119,209 $ 107,230
Total income tax impact on provision $ 26,413 $ 24,079
v3.22.1
Stockholders' Equity - Stock Repurchases (Details) - USD ($)
$ in Billions
Mar. 31, 2022
Mar. 31, 2021
Stockholders' Equity Note [Abstract]    
Common stock authorized to be repurchased   $ 5.0
Remaining authorized repurchase amount $ 4.4  
v3.22.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Provision for income taxes $ 382,245 $ 327,787  
Effective tax rate 19.00% 16.00%  
Tax benefit from share based compensation $ 25,000 $ 47,000  
Unrecognized tax benefits 215,000   $ 203,000
Reduction in provision for income taxes due to impact of effective tax rate $ 143,000    
v3.22.1
Segment and Geographic Information - Narrative (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
segment
Mar. 31, 2021
USD ($)
Segment Reporting Information [Line Items]    
Number of operating segments | segment 1  
Revenues $ 7,867,767 $ 7,163,282
United States    
Segment Reporting Information [Line Items]    
Revenues $ 3,100,000 $ 3,000,000
v3.22.1
Segment and Geographic Information - Long-lived Assets by Geographical Areas (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived tangible assets $ 2,885,860 $ 2,833,059
International    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived tangible assets $ 981,681 $ 936,967