Netflix Is Taking on $2 Billion in Debt to Fund More Original Shows
Netflix has announced in an official statement, that it plans to take on $2 billion in new debt for "general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions."
This news also comes after the announcement of Disney’s own streaming platform which is suggested to launch next year, and indicates Netflix's strategy to increase the amount of original content it makes and distribute. In addition, the company announced last week that it has more than 137 million subscribers, and around 130 million of whom pay for the service.
Furthermore, according to CNBC, the additional $2 billion debt already adds to the company's balance sheet, as it had reported almost $12 billion in total debt as of September 30. The streaming giant plans to spend $8 billion on content this year, with $6.9 billion already spent on TV shows and movies by the end of its third quarter.
Netflix also has a guideline for renewing or cancelling shows, which you can learn about here , and read why the company isn’t introducing ads yet.
In related news, Netflix is accused of targeting black users with misleading posters.