or 59%, partially offset by an increase in subscription revenues of $404.7 million or 13%.

Cash used in investing activities decreased $19.9 million primarily due a $36.9 million decrease in the acquisition of DVD content library and an $8.2 million decrease in the purchase of property and equipment due to a decrease in purchases of automation equipment for our various shipping centers. These decreases were partially offset by a $30.4 million increase in the purchases, net of proceeds from sales and maturities, of short-term investments.

Cash provided by financing activities for the year ended December 31, 2012 was $5.6 million primarily related to stock option activity. Cash provided by financing activities for the year ended December 31, 2011 was $261.7 million, which consisted primarily of $199.9 million of proceeds from the public offering of common stock and $198.1 million of proceeds from the issuance of debt. These proceeds were offset by $199.7 million of stock repurchases.

Free cash flow decreased $244.7 million primarily due to a decrease of $196.6 million in net income as adjusted for the increase in non-cash stock-based compensation of $12.4 million as well as to a $28.6 million increase in excess tax payments over tax provision and $34.1 million increase related to the timing of various accruals. This was partially offset by a $13.0 million decrease in excess property and equipment payments over depreciation expense. Content payments increased $742.6 million while content expenses increased $745.2 million.

Cash provided by operating activities increased $41.3 million, primarily due to an increase subscription revenues of $1,042.0 million or 48%. This increase was partially offset by increased payments for content acquisition and licensing other than DVD library of $766.3 million or 138%. Operating cash flows were further impacted by increases in payroll expenses and payments for advertising and affiliates transactions.

Cash used in investing activities increased $149.7 million, primarily due to a $164.0 million increase in the purchases, net of proceeds from sales and maturities, of short-term investments. In addition, purchases of property and equipment increased $15.8 million primarily due to purchases of automation equipment for our various DVD shipping centers. These increases were partially offset by a $38.7 million decrease in acquisition of DVD content library.

Cash provided by financing activities increased $361.7 million, primarily due to our public offering of 2.9 million shares of common stock for net proceeds of $199.9 million and $198.1 million net proceeds received from the issuance of our Convertible Notes in the fourth quarter of 2011. In addition, repurchases of our common stock decreased by $10.6 million. These increases were partially offset by a $30.2 million decrease in proceeds from the issuance of common stock upon exercise of options and a $16.4 million decrease in excess tax benefits from stock-based compensation expense.

Free cash flow increased $55.5 million, primarily due to an increase of $98.9 million in net income as adjusted for the increase in non-cash stock-based compensation of $33.6