Overview of Content Accounting

Cash costs for original content are more front end loaded. For produced original content, we often cash flow the production costs during the content creation process prior to completion and release on the Netflix service. This could be years in advance of a release date. This also creates a content asset with a useful life well into the future. For licensed originals, cash payment terms also generally exceed expense in the early years. Payment for second window and catalog licensed content is generally upon delivery and over the window of availability. 21 NETFLIX

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