Netflix Doubles Down On Original Content
Streaming giant Netflix is set to raise $800 million via a senior note debt offering in order to fuel its continued growth.
The bulk of the money is expected to go into the company’s original content, which helped it achieve higher than expected increase in subscribers in the third quarter of 2016,
These gains brought total membership numbers to 86.7 million and were attributed largely to excitement around Netflix’s original series – in particular Stranger Things.
Netflix will have released 600 hours of original programming by the end of 2016 and plans to almost double that next year, with the company set to produce over 1,000 hours.
The debt-offering will see Netflix’s level of debt rise to over $3 billion. However, taking into account annual revenues of over $2 billion and the reality that many of the licensing deals that buffer the service’s third-party content are set to lapse, it’s a move that’s almost entirely necessary to keep the company ahead of rivals.