• Tuesday, Jul 14, 2020
  • Last Update : 12:56 am

Netflix to raise $1 billion to fund original content

  • Published at 09:02 am April 23rd, 2020
WEB_Netflix
Gamers and visitors take a rest at the booth of Netflix during Europe's leading digital games fair Gamescom, which showcases the latest trends of the computer gaming scene in Cologne, Germany, August 21, 2019 Reuters

The streaming pioneer doubled its own projections for new customers as stuck-at-home users binged on movies and shows

Netflix Inc has said that it plans to raise about $1 billion in debt to beef up original content.

The streaming pioneer made the announcement on Wednesday, a day after it doubled its own projections for new customers as stuck-at-home users binged on movies and shows.

Shares of the company were down 3% at $420 in morning trade after it also forecast a weaker second half of the year when shelter-in-place orders are lifted.

Netflix plans to use some of the cash to acquire content and for possible acquisitions, positioning itself as major U.S. studios halt productions and delay film releases due to the coronavirus-led lockdowns.

Most programming for 2020, and much of 2021, has already been filmed and is being finished remotely in post-production, Chief Content Officer Ted Sarandos said on Tuesday, adding that the company was working on over 200 such projects.

As streaming video grows in the United States, the space has become more competitive with the debut of Walt Disney Co’s Disney+ and other upcoming rivals.

That threat has pushed Netflix, with about 183 million global subscribers, to aggressively expand its content and look overseas for growth.

“Despite new services on the horizon from HBO and launches of services from Disney and Apple, we expect minimal long-term impact to Netflix subscriber addition and retention,” Piper Sandler analysts wrote in a client note.

Netflix launched several popular original shows in the first quarter, including action film Spenser Confidential, documentary miniseries Tiger King, dating show Love is Blind and Spanish drama Money Heist.

The current quarter slate includes the Chris Hemsworth starred action movie Extraction, sitcom #blackAF, comedy show Space Force and reality dating series Too Hot to Handle.

Netflix had a $15 billion cash budget for content last year and BMO Capital Markets had estimated spending on content to top $17 billion this year.

The company, which usually funds its spending spree by sporadically tapping the debt market, is selling senior notes this time.

Netflix, which has about $15 billion in debt, last raised money in October 2019 through a $2 billion offering of senior notes.

53
52
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail