Netflix Will Borrow $2 Billion For New Content
The streaming heavyweight will need a boatload of money for some new exclusive content.
Netflix has spent more than $3 billion in 2018 funding exclusive content. The company is expected to gain an estimated 10 million new subscribers in the next year or so. The streaming giant is determined to remain at the top and is clearly not afraid to spend more money then they are making for the time being.
I reported in 2017 that Netflix has $20 million worth of debt. The company is clearly playing the long game and will try to gain as many subscribers as they possibly can before they reduce their spending and begin to pay down their debt.
Netflix has a market value of $146 billion. Shareholders are banking on this number to balloon much more over the next 5 years. I am just not sure if that will happen. I am one who believes Netflix has gotten dual to some degree over the last few years. I often hear Netflix subscribers say things like “there is nothing to watch on Netflix”. The amount of subscribers is ascending, but I don’t believe it will last too much longer.