Overview of Content Accounting

FAQ. You have discussed your ratio of cash spending on content to P&L spending on content. What does this refer to? This ratio is our cash spending on content (as derived from our cash flow statement) divided by our content amortization (which flows through our income statement) This ratio is an indicator of the timing differences between cash payment terms on content vs. the content expense recognition Cash payments are more front-loaded, especially for produced content which we must fund during the production process before the content is completed and available for viewing 23 NETFLIX

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