Option Grant and Exercise Terms

Table of Contents promotional activities such as digital and television advertising. Marketing expenses also include payroll and related expenses for personnel that support marketing activities. Marketing As a percentage of revenues 2021 Year Ended December 31, 2020 2019 Change 2021 vs. 2020 $ 2,545,146 $ (in thousands, except percentages) 2,228,362 $ 2,652,462 $ 316,784 9 % 9 % 13% 14 % The increase in marketing expenses for the year ended December 31, 2021 as compared to the year ended December 31, 2020 was primarily due to a $222 million increase in advertising expenses, partially offset by increased payments to our marketing partners. In addition, personnel-related costs increased $116 million, primarily due to growth in average headcount to support the increase in our production activity and continued improvements in our streaming service. Technology and Development Technology and development expenses consist primarily of payroll and related expenses for technology personnel responsible for making improvements to our service offerings, including testing, maintaining and modifying our user interface, our recommendations, merchandising and infrastructure. Technology and development expenses also include costs associated with general use computer hardware and software. Technology and development As a percentage of revenues 2021 Year Ended December 31, 2020 2019 Change 2021 vs. 2020 $ 2,273,885 $ (in thousands, except percentages) 1,829,600 $ 1,545,149 $ 444,285 24 % 8 % 7% 8% The increase in technology and development expenses for the year ended December 31, 2021 as compared to the year ended December 31, 2020 was primarily due to a $384 million increase in personnel-related costs, primarily due to growth in average headcount to support the increase in our production activity and continued improvements in our streaming service. General and Administrative General and administrative expenses consist of payroll and related expenses for corporate personnel. General and administrative expenses also include professional fees and other general corporate expenses. General and administrative As a percentage of revenues 2021 Year Ended December 31, 2020 $ 1,351,621 $ 5 % 4 % 2019 (in thousands, except percentages) 1,076,486 $ 914,369 5 % Change 2021 vs. 2020 $ 275,135 The increase in general and administrative expenses for the year ended December 31, 2021 as compared to the year ended December 31, 2020 was primarily due to a $187 million increase in personnel-related costs, primarily due to growth in average headcount to support the increase in our production activity and continued improvements in our streaming service. In addition, third-party expenses, including costs for contractors and consultants, increased $66 million. 26 % Interest Expense Interest expense consists primarily of the interest associated with our outstanding debt obligations, including the amortization of debt issuance costs. See Note 6 Debt in the accompanying notes to our consolidated financial statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Annual Report on Form 10-K for further detail on our debt obligations. 23

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