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You're right, zoningfool, thanks for the catch. Sorry about that KitKat.

From page 27 of the 10Q:

For the titles recognized in content library, the license fees due but not paid are classified on the consolidated balance sheets as “Accounts payable” for the amounts due within one year and as “Other non-current liabilities” for the amounts due beyond one year.

I think comparing this number to CFFO might not be the right way to go. NFLX straight-line amortizes the content liabilities over their contract life and then adds or subtracts back the actual cash expense paid for these rights in the cash flow statement. If you subtract the content liability expenses from CFFO again you'd be counting it twice.

Questions similar to this must come up pretty regularly. The accounting treatment for these streaming rights is question number one on Netflix's investor relation FAQ:

These seem to be small details though when you look at the size of the combined short term on and off balance sheet liabilities. My first assumption would be that cash acquisition costs would be managed/reduced in order fund content liabilties as they come due.

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