Netflix raises $2bn in debt to fund more content
October 22, 2019
Netflix is raising another $2 billion (€1.79bn) in debt for the production, development and potential acquisitions of content.
The streaming giant routinely raises debt to help grow its catalogue of original titles. Netflix also offered $2 billion in new debt back in April after issuing another round of notes several months earlier. The company is now on track to spend a total $15 billion on movies and TV series this year.
The move comes as Disney, WarnerMedia, Apple, and NBCUniversal are all prepping to enter the SVoD arena with their own D2C services.
Netflix is bracing itself for a war. It acknowledged the imminent onslaught of competition just last week. “The launch of these new services will be noisy,” Netflix executives said in their quarterly letter to shareholders. “There may be some modest headwind to our near-term growth, and we have tried to factor that into our guidance.”