Netflix Inc. plans to reclassify certain streaming personnel-related expenses on its consolidated statement of operations to reflect the company's strategy of self-producing and creating more of its own content rather than licensing or buying it from third parties.
As a result, the company said Jan. 2 that the work performed by certain personnel has changed to be more directly related to development, marketing and delivery. The reclassification is effective for the fourth quarter of 2018.
Expenses for personnel that support global content and marketing that were previously classified in general and administrative expenses were reclassified to cost of revenues and marketing, respectively. Expenses for personnel that support global streaming delivery that were previously classified in technology and development were also reclassified to cost of revenues.
The company will reclassify personnel-related expenses for all previous quarters in order to present comparable financial results. There is no change to consolidated operating income, net income or cash flows or DVD segment results.
The news comes as Netflix confirmed the appointment of Spencer Neumann as its new CFO.