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REPORTABLE SEGMENTS
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
The Company’s operating segments are determined based on: (i) financial information reviewed by its chief operating decision maker (“CODM”), the Chief Executive Officer (“CEO”), (ii) internal management and related reporting structure, and (iii) the basis upon which the CEO makes resource allocation decisions.
The accounting policies of the reportable segments are the same as the Company’s, except that certain inter-segment transactions that are eliminated for consolidation are not eliminated at the segment level. Inter-segment transactions primarily include advertising and content licenses. The Company generally records inter-segment transactions of content licenses at market value. The Company does not report assets by segment because it is not used by the CODM to allocate resources or evaluate segment performance.
The Company evaluates the operating performance of its segments based on financial measures such as revenues and Adjusted EBITDA. Adjusted EBITDA is defined as operating income excluding:
•employee share-based compensation;
•depreciation and amortization;
•restructuring and facility consolidation;
•certain impairment charges;
•gains and losses on business and asset dispositions;
•third-party transaction and integration costs;
•amortization of purchase accounting fair value step-up for content;
•amortization of capitalized interest for content; and
•other items impacting comparability.
The CODM uses this measure to assess the operating results and performance of the segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. The Company believes Adjusted EBITDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes employee share-based compensation, restructuring, certain impairment charges, gains and losses on business and asset dispositions, and transaction and integration costs from the calculation of Adjusted EBITDA due to their impact on comparability between periods. Integration costs include transformative system implementations and integrations, such as Enterprise Resource Planning systems, and may take several years to complete. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content (which is included in consolidated costs of revenues), and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. We prospectively updated certain corporate allocations at the beginning of 2025. The impact to prior periods was immaterial.
The tables below present summarized financial information for each of the Company’s reportable segments (in millions).
Revenues
 Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Streaming$2,793 $2,568 $5,449 $5,028 
Studios3,801 2,449 6,115 5,270 
Global Linear Networks4,803 5,272 9,577 10,397 
Corporate1 1 1 2 
Inter-segment eliminations (1,586)(577)(2,351)(1,026)
Total revenues$9,812 $9,713 $18,791 $19,671 
Reconciliation of Revenues to Segment Adjusted EBITDA
Three months ended June 30, 2025
StreamingStudiosGlobal Linear Networks
Revenues$2,793 $3,801 $4,803 
Less:
Content expense (a)
1,600 2,135 2,105 
Personnel expense (b)
191 232 505 
Marketing expense294 363 115 
Other segment expenses (c)
415 208 566 
Segment Adjusted EBITDA$293 $863 $1,512 
Three months ended June 30, 2024
StreamingStudiosGlobal Linear Networks
Revenues$2,568 $2,449 $5,272 
Less:
Content expense (a)
1,699 1,532 1,965 
Personnel expense (b)
201 231 566 
Marketing expense353 268 115 
Other segment expenses (c)
422 208 628 
Segment Adjusted EBITDA$(107)$210 $1,998 

Six months ended June 30, 2025
StreamingStudiosGlobal Linear Networks
Revenues$5,449 $6,115 $9,577 
Less:
Content expense (a)
3,104 3,474 3,937 
Personnel expense (b)
377 462 1,001 
Marketing expense514 615 219 
Other segment expenses (c)
822 442 1,115 
Segment Adjusted EBITDA$632 $1,122 $3,305 

Six months ended June 30, 2024
StreamingStudiosGlobal Linear Networks
Revenues$5,028 $5,270 $10,397 
Less:
Content expense (a)
3,266 3,482 3,808 
Personnel expense (b)
393 471 1,114 
Marketing expense642 557 203 
Other segment expenses (c)
748 366 1,155 
Segment Adjusted EBITDA$(21)$394 $4,117 
(a) Content expense includes amortization, impairments, participations, residuals, development expense, and production costs, including talent costs, and is a component of costs of revenues. Content expense excludes content impairments and other development costs recorded in restructuring and other charges, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content as these items are excluded from the calculation of Adjusted EBITDA.
(b) Personnel expense is a component of costs of revenues and selling, general and administrative expense. Personnel expense includes marketing personnel compensation and excludes commissions (included in other segment expenses) and talent costs (included in content expense).
(c) Other segment expenses include distribution costs, other direct costs, software and hardware costs, IT services, professional and consulting fees, commissions, and certain other overhead costs. Other segment expenses exclude depreciation and amortization, amortization of purchase accounting fair value step-up for content, amortization of capitalized interest for content, employee share-based compensation, third-party transaction and integration costs, and other items impacting comparability as these items are excluded from the calculation of Adjusted EBITDA.
Reconciliation of segment adjusted EBITDA to loss before income taxes
 Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Streaming$293 $(107)$632 $(21)
Studios863 210 1,122 394 
Global Linear Networks1,512 1,998 3,305 4,117 
Segment Adjusted EBITDA2,668 2,101 5,059 4,490 
Depreciation and amortization1,447 1,744 2,994 3,632 
Employee share-based compensation173 156 293 255 
Restructuring and other charges80 117 134 152 
Transaction and integration costs17 51 97 132 
Facility consolidation costs4 5 9 7 
Impairment and amortization of fair value step-up for content388 522 628 757 
Amortization of capitalized interest for content3 13 9 30 
Impairments and loss on dispositions26 9,395 116 9,407 
Corporate316 285 549 631 
Inter-segment eliminations 399 21 452 (38)
Other income, net(139)(172)(221)(158)
(Income) loss from equity investees, net(5)23 2 71 
Gain on extinguishment of debt(2,958)(542)(2,954)(567)
Interest expense, net463 518 931 1,033 
Income (loss) before income taxes$2,454 $(10,035)$2,020 $(10,854)