In its effort to attract more subscribers through investment on original content, Netflix announced its extra load of the loan on Monday.
Netflix has set its agenda of borrowing worth $2 billion. The loaned sum would help in funding the production of exclusive films and series.
The management of the streaming giant credits its content production business in helping it rake in more customers for the past five years.
The Los Gatos, the California-headquartered firm believes that all of its expenditures for its prize-winning content will facilitate its building an overwhelming primacy in video streaming.
This is in light of other leading entertainment companies like The Walt Disney Company joining the bandwagon as well as its current ensemble of market contenders like HBO, Hulu, and Amazon Prime Video.
This year, Netflix is looking forward to quickly spending $3 billion. In a bond offering, Netflix intends to raise $2 billion which will be removed from its current debt worth $11.8 billion.
That consists another $1.9 billion financial obligations that the streaming service had already finalized earlier this year.
Netflix is internationally targeting the production of about 700 original programs on its streaming service this year, aiming to beat its dark horse, Amazon, in gaining more subscribers.
Apparently, the streaming service behemoth requires more funding. Since its engagement into original programming with “House of Cards” release in 2013, Netflix has been spending more money than its venture has produced.
Netflix’s overindulgence in making loans seems to be yielding positive outcomes. Since September 2013, the streaming service juggernaut has earned almost 100 million customers.
This comprises 7 million streaming enthusiasts in the third quarter of this year. The major over-the-top (OTT) player forecasted lately that it would incorporate another 9.4 million customers by the culmination of 2018.
Investors of Netflix have been heavily betting on the streaming service to be victorious. The OTT firm’s stock price is worth sevenfold than it was in 2013.
This fact provides Netflix a market value of roughly $146 billion. Closing at $329.54 on Monday, its shares slipped to the $3.13 level.
Serving over 190 territories, Netflix currently has 137 million paying members as of the third quarter of 2018.