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Netflix to raise $1 billion in debt to develop more original content

Author : Saipriya Iyer | Published Date : 2020-04-23 

Netflix, the renowned global video streaming giant, has reportedly planning to raise approximately $1 billion in debt in efforts to increase the original content on its platform. The announcement comes just one day after the company doubled its projections for novel customers as people stuck at home during the lockdown are increasingly binging shows and movies on its platform.

The streaming platform aims to utilize some of the raised capital to procure new content and also for more possible acquisitions in the future to better position itself as top U.S. studios halt productions and postpone film launches owing the COVID-19 lockdowns.

Chief Content Officer, Netflix, Ted Sarandos stated that a majority of programming for 2020 as well as 2021 has already been filmed and is currently being finished in post-production remotely. The company is currently working on over 200 such projects, Sarandos added.

As streaming video platforms continue to grow in the U.S., the video streaming field is becoming more and more competitive. Walt Disney Co’s Disney+ has already entered the video streaming segment with other rivals expected to rapidly foray into the space.

This competition has impelled Netflix to aggressively expand its platform and look for growth outside the United States. Netflix currently has approximately 183 million global subscriptions.

The video streaming company has launched many popular original shows during the first quarter of 2020, including an action film called “Spenser Confidential”, a dating show “Love is Blind”, a documentary miniseries “Tiger King”, and a Spanish drama named “Money Heist”.

The second quarter plans includes a number of different content, including an action movie called “Extraction”; starring Chris Hemsworth, “Too Hot to Handle” which is a reality dating series, comedy show called “Space Force”, and a sitcom named “#blackAF”. 

The company, which generally funds its production spending sprees by tapping into the debt market sporadically, is now selling senior notes. Netflix presently has approximately $15 billion in debt, and previously raised capital in October 2019 from a $2 billion offering of senior notes. 

 

Source credit: https://uk.reuters.com/article/us-netflix-debt/netflix-to-raise-1-billion-to-fund-new-shows-idUKKCN2241ZI

 

About Author

Saipriya Iyer

Saipriya Iyer

Saipriya Iyer presently works as a content developer for fractovia.org. Having dabbled with the domain of content creation for nearly half a decade, she now boasts of an enviable portfolio, holding substantial experience in penning down pieces related to technology, finance, and a wide spectrum of other industry verticals. A qualified computer engineering graduate from the University of Pune, Saipriya can often be found leveraging her knowledge of software technology and electronics in her write-ups. She can be contacted at- [email protected] | https://twitter.com/saipriya_i

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