NFLX · 10-Q · 2026Q2 · Full report
Content Investment and Commitments
NETFLIX INC · 2026-07-17 · Importance 66 · Surprise 40 · No source text
Netflix’s content assets totaled $33.8 billion at June 30, 2026, including $21.6 billion of produced content and $12.2 billion of licensed content. Produced content in production increased 12% from year-end 2025 to $10.3 billion, indicating a larger active production pipeline. Total content obligations increased to $25.1 billion from $24.0 billion, including $19.6 billion of off-balance-sheet commitments for content acquisition, licensing, and production. The obligations include creative talent and employment agreements, production commitments, future title licenses, and traditional film output or television series licensing arrangements.
Key facts
- The Company expects unknown future title obligations could include approximately $1 billion to $4 billion over the next three years, with the vast majority of payments expected after the next twelve months. source
- Additions to content assets for the three months ended June 30, 2026: $(4,927,523) (in thousands). source
- Amortization of content assets for the three months ended June 30, 2026: $4,311,309 (in thousands). source
- Content assets, net as of June 30, 2026: $33,837,573 (in thousands). source
- Produced content net balance (released, less amortization) as of June 30, 2026: $10,487,502 (in thousands). source
- Produced content net balance (in production) as of June 30, 2026: $10,313,433 (in thousands). source
- The increase in cost of revenues for the three months ended June 30, 2026 was primarily due to a $479 million increase in content amortization. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -34.3% | Amortization of content assets for the three months ended June 30, 2026: $4,311,309 (in thousands). |
| assets | positive | realized | +8.4% | Additions to content assets for the three months ended June 30, 2026: $(4,927,523) (in thousands). |
| cash | negative | realized | -8.4% | Additions to content assets for the three months ended June 30, 2026: $(4,927,523) (in thousands). |
| assets | negative | realized | -7.4% | Amortization of content assets for the three months ended June 30, 2026: $4,311,309 (in thousands). |
| liability | negative | probable | -2.1% | The Company expects unknown future title obligations could include approximately $1 billion to $4 billion over the next three years, with… |
| assets | positive | realized | — | Content assets, net as of June 30, 2026: $33,837,573 (in thousands). |
| assets | positive | realized | — | Produced content net balance (released, less amortization) as of June 30, 2026: $10,487,502 (in thousands). |
| assets | positive | realized | — | Produced content net balance (in production) as of June 30, 2026: $10,313,433 (in thousands). |