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US: Netflix is raising US$1.6b in debt as its content costs balloon

By  |  October 23, 2017

Netflix is selling US$1.6 billion worth of notes as the streaming service continues to expand its content budget, the company said Monday, October 23.
Proceeds of the sale would be used for general business purposes including content acquisition and development, according to a press release.

The notes will be offered to “qualified institutional buyers” and will be subject to negotiations with regard to interest rate and maturity date, the release said.

Netflix reported 5.3 million new subscribers during the third quarter and emphasized a long-term push for exclusive, original content in earnings conference calls.

During the earnings announcement, Netflix said it would spend US$7 billion to US$8 billion on content in 2018 — tacking on US$1 billion to the upper limit of earlier content budget estimates.

Full Content: Variety

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