Option Grant and Exercise Terms

Table of Contents Europe, Middle East, and Africa (EMEA) Revenues Paid net membership additions Paid memberships at end of period Latin America (LATAM) Revenues Paid net membership additions Paid memberships at end of period Asia-Pacific (APAC) Revenues Paid net membership additions Paid memberships at end of period $ $ 2021 2021 2021 As of/ Year Ended December 31, 2020 (in thousands) 9,699,819 7,338 74,036 $ 7,772,252 14,920 $ 66,698 As of/ Year Ended December 31, 2020 (in thousands) 3,576,976 2,424 39,961 $ 3,156,727 6,120 37,537 $ As of Year Ended December 31, 2020 (in thousands) 3,266,601 7,140 32,632 $ 2,372,300 9,259 25,492 $ 2019 2019 2019 5,543,067 13,960 51,778 2,795,434 5,340 31,417 1,469,521 5,626 16,233 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 $12.1 billion, $10.8 billion and $9.5 billion for the years ended December 31, 2021, 2020 and 2019, respectively. DVD revenues were $0.2 billion, $0.2 billion, and $0.3 billion for the years ended December 31, 2021, 2020 and 2019, respectively. Deferred revenue consists of membership fees billed that have not been recognized, as well as gift and other prepaid memberships that have not been fully redeemed. As of December 31, 2021, total deferred revenue was $1,209 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 $91 million increase in deferred revenue as compared to the balance of $1,118 million for the year ended December 31, 2020, is a result of the increase in membership fees billed due to increased memberships and average monthly revenue per paying member. 47

View entire presentation