Netflix returns to debt market

Netflix aims to raise another US$2bn to fuel its original content production and development strategy, in a rapidly changing international SVoD market.

Reed Hastings

The streamer is looking to raise the money via 10-and-a-half-year US dollar and euro bonds, with the proceeds to be used “for general corporate purposes that may include investing in content, production and development,” Netflix said.

The move continues the streamer’s recent borrowing pattern, which last year saw it raise fund after its first- and third-quarter results.

Netflix last went to the debt market in October, looking for US$2bn to fund content acquisition, production and development of originals such as Stranger Things.

CEO Reed Hastings recently said the borrowing would soon come to an end, however, as the company becomes able to fund itself. To date, Netflix has racked up around US$10bn in debt, largely as a result of its huge spending on content, which reportedly amounts to US$13bn annually.

In its latest quarterly results this month, Netflix saw revenues soar 22% and subscriber numbers rise by nine million, meaning it now has almost 150 million globally.

The streamer also said it did not expect soon-to-launch competitors from WarnerMedia, Apple and Disney – which will cost almost half the price of Netflix’s standard package in the US – to affect its growth plans.