Overview of Content Accounting
Content Obligations.
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 and are not
included in content obligations. Traditional film output deals or certain TV series license
agreements where the number of seasons to be aired is unknown, are examples of these types of
agreements.
These unknown obligations are expected to be significant and we believe could include
approximately $1 billion to $4 billion over the next three years, with the payments for the vast
majority of such amounts expected to occur after the next twelve months. Once we know the title
that we will receive and the license fees, we include the amount in the contractual obligations table.
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