Netflix to raise $1.5bn in debt

Queer Eye helped Netflix boost its subscriber base in the first quarter of 2018

Netflix has said it plans to raise US$1.5bn in debt as the streamer’s aggressive push into original content continues.

It marks the second time in 12 months the global streaming giant has turned to the debt market, having raised US$1.6bn last October.

In its last statement to shareholders, Netflix said it was on track to exceed US$11bn in revenues in 2017, with US$8bn earmarked for content in 2018.

The company said on Monday it intends to use the net proceeds from the offering for general corporate purposes, which may include content acquisitions, production and development.

It comes after the company added more international subscribers than expected in the first quarter of 2018, when original series such as Altered Carbon and Queer Eye were launched.

In related news, Netflix has announced it will launch an animated series based on the Fast & Furious action movie franchise as part of its expanded relationship with DreamWorks Animation Television.

C21 first reported on the plans to create a cartoon based on the franchise in 2016, before Netflix was attached.

The streamer’s expanded relationship with DreamWorks will give it first-look access to DreamWorks Animation Television productions from the Universal Pictures library. This follows Universal Pictures owner Comcast’s takeover of DreamWorks in 2016.

Melissa Cobb, VP of kids and family at Netflix, said the series will “capture the action, heart, humour and global appeal of the feature films.”

It will follow a teenage boy as he and his friends are recruited by a government agency to infiltrate an elite racing league serving as a front for a crime organisation bent on world domination.

Tim Hedrick (DreamWorks Voltron Legendary Defender) and Bret Haaland (All Hail King Julien) will serve as executive producers and showrunners. The series is also executive produced by Vin Diesel, Neal Moritz and Chris Morgan.

The trio also serve as producers on the live-action Fast & Furious franchise, which has so far spawned eight films and earned more than US$5bn at the worldwide box office.

The next Fast & Furious film will arrive in theatres in July 2019, while further films are due for release in April 2020 and April 2021.