Netflix announced today (April 23) that the digital streaming giant will raise another US$1.5 billion in debt to fund content production, development and acquisitions.
In its first quarter 2018 results released last week, the global streamer committed to spending between $7.5 and $8 billion on content this year. The company also said it would continue to raise debt to fund its expansion in original content.
In a call with investors on April 16, chief content officer Ted Sarandos said Netflix expects to produce more original local productions going forward.
Netflix has produced originals in 17 countries to date, including the 25/7 Productions-made global reality competition series Ultimate Beastmaster for which Netflix produced six localized versions in season one across Brazil, Germany, Japan, Mexico, South Korea and the U.S. Season two, meanwhile, saw the series move to the U.S., Spain, France, Italy, China and India.
Today’s proposed $1.5 billion offering of senior notes is Netflix’s latest announcement that it will raise debt to fund its content expansion. Most recently, in October 2017, the streamer announced it would raise $1.6 billion. In both instances, the streamer said it would use the proceeds from its offering “for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”
From Playback Daily