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Netflix, Inc. (NFLX) Message Board

  • mondomario18 mondomario18 Apr 28, 2013 1:21 PM Flag

    Maybe people do not understand that licensing is not like DVD purchase

    Licensing does not last forever like the purchase of a DVD. It has to be renewed to be able to use the content ... and costs will grow as more content becomes available.

    From the 10-Q
    "For streaming content, we typically enter into multi-year licenses with various content providers that may result in an increase in content library and a corresponding increase in liabilities on the Consolidated Balance Sheets. The payment terms for these license fees may extend over the term of the license agreements, which typically range from six months to five years."

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